Continuous adaptation and Performance of Information Technology Projects of Tier one Commercial Banks in Kenya

Abstract

The effective execution of information technology (IT) projects is crucial for sustaining a competitive advantage in Kenya’s rapidly evolving banking sector. Despite this importance, many IT projects in commercial banks often fail to meet their intended performance goals due. Moreover, there has been little emphasis on flexibility and adaptation, which are essential for ensuring responsiveness to dynamic technological and market changes. Therefore, the current research examined the continuous adaptation and its effect on performance of information technology projects in tier one banks in Kenya. The study was anchored on theory of agile project management. The study adopted an explanatory research design. The target population was the eight Tier-1 commercial banks, which formed the unit of analysis. The unit of observation comprised the 128 individuals involved in execution and management of IT projects. Data was collected through structured questionnaire and analyzed using SPSS. The results showed that the correlation coefficient was (r = 0.664; p=0.000). The regression analysis revealed an R² value of 0.441, indicating that approximately 44.1% of the variation in project performance was explained by continuous adaptation. These findings imply that continuous adaptation affect the performance of information technology projects in tier-one banks. The study concludes that continuous adaptation is vital for enhancing the resilience and overall performance of information technology projects by promoting agility and responsiveness to dynamic operational environments. The study recommends that tier-one banks strengthen their agile project management approaches by institutionalizing adaptive practices that enable timely alignment of project strategies with emerging technological and regulatory changes to improve performance.