Technology Adoption, Innovation and Financial Performance among Commercial Banks in Kampala, Uganda
Year: 2026
Type: article
Abstract: This study examined the effect of technology adoption and innovation on the financial performance of selected commercial banks in Kampala, Uganda. Utilizing a quantitative approach, data were collected through structured questionnaires distributed to 161 bank employees and management staff. The analysis revealed a strong positive correlation (r = 0.696, p < 0.01) between technology adoption and innovation and the financial performance of these banks. The findings indicated that the adoption of new technologies significantly improved financial outcomes, with an average mean score of 3.88 reflecting general satisfaction among respondents regarding the impact of technological strategies. Specifically, the statement "The adoption of new technologies has improved our bank's financial performance" received the highest mean score of 4.11, affirming the direct benefits of technological integration. Regression analysis further confirmed that technology adoption and innovation explained 48.4% of the variance in financial performance, leading to the rejection of the null hypothesis that posited no significant relationship between these factors. The findings revealed that technology adoption and innovation significantly improve financial performance by enhancing operational efficiency, service delivery, customer satisfaction, and competitiveness. The study concludes that commercial banks should continuously invest in digital technologies and innovative banking solutions to sustain growth and improve profitability in an increasingly competitive banking environment.
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225773524
FWCI:
Cites:
Cited by:
Related to: