Invariable Features of a Firm and Value Creation in Agency Banking Projects: A Case of Retail Banking in Kenya

Invariable Features of a Firm and Value Creation in Agency Banking Projects: A Case of Retail Banking in Kenya

Isiye Clement Muyabila¹, Professor Charles M Rambo Ph.D. ¹, Professor Raphael O Nyonje Ph. D.²

¹Faculty of Business and Management Sciences University of Nairobi

²Faculty of Educational Management Policy and Curriculum Studies University of Nairobi

DOI: https://dx.doi.org/10.47772/IJRISS.2023.701085

Received: 25 September 2023; Accepted: 07 October 2023; Published: 06 November 2023

ABSTRACT

To maintain their competitiveness in the face of constantly changing technologies, the majority of banking institutions are forming non-equity financing strategic collaborations. The traditional financial banking systems have been put to the test by the rise in the use of mobile financial services. The objective of the study was to ascertain how invariable features of a firm influenced agency banking project value creation. According to a pragmatic paradigm philosophy, the study accepted both descriptive and inferential statistics. 400 personnel of strategic alliances who were involved in agency banking programs in Kenyan counties were the population’s intended audience. A total sample of 200 people, including 50 agency bank supervisors and 150 agency employees, was drawn using simple random and deliberate sampling. An open-ended, closed-ended, and interviewing guide was used to get the data. The following models were used to analyse the data: Pearson Correlation, Simple Regression, Multiple Regression, and the Mean, Composite Mean, Standard Deviation, and composite standard deviation. The study found that there is no significant association between invariable aspects of a firm and value creation in agency banking projects, leading to the adoption of the null hypothesis. It was recommended that future researchers to examine the influence of company characteristics on corporate governance in agency banking projects

Key Words: Invariable features of a firm, Value Creation in    Agency Banking Projects

INTRODUCTION

Globalization and technology advancements have significantly impacted the banking environment, leading to the rise of non-equity financing strategic alliances. These agreements involve companies collaborating without equity sharing, ensuring banks maintain competitiveness in the digital age. These alliances, defined by Schwienbacher (2018) and Isoraite (2009), involve financiers, project sponsors, and other parties working together to finance business within a specific line of business, focusing on specific assets for generational purposes. These alliances ensure that all parties benefit while remaining autonomous. This study explores invariable features of a firm in creation of value with commercial bank projects. It highlights the importance of external knowledge sources and technical capabilities in organizations’ innovation strategies. Studies show that invariable features with Western corporations have been beneficial for companies like Huawei Technologies, Tata, and Haier. Vattikoti’s, (2018) study highlights the importance of strategic invariable feature conditions in maintaining a competitive advantage in the modern global economy. Chepkwony’s literature on Nigeria’s network process suggests that firm invariable features provide immediate benefits to companies. In Kenya, there is limited information on invariable features of a firm and value creation in agency banking projects, but some have occurred in the grocery and banking sectors. Wandia, (2018) suggests that most significant coalitions eventually disintegrate, despite invariable features of a firm being a key strategy for sustainable development.

Financial institutions in Kenya are forming alliances with brokerage firms and mobile service providers to stay competitive in the digital world. Strong alliance norms and procedures are crucial to avoid collaboration failures. The Economist reports (2010) that over half of inter-organizational strategic alliances between 1992 and 1995 were scrapped. To compete, retail banking companies have developed unique tactics, including non-equity financing strategic alliances. invariable features of a firm

offer access to value in the banking industry. A study was conducted in Kenya to understand how invariable features of a firm relate to the creation of value for agency banking projects.

Value Creation in Agency Banking Projects

Agency banking is a notion where some banking services are supplied through a third party hired by the authorized bank as an agent to present the designated products to customers on the bank’s behalf. Networks of independent third-party outlets known as “retail banking agency projects” carry out financial transactions. Agency banking projects are transactions where a retail bank contracts with a small company on behalf of the bank’s clients. Agent outlets perform tasks such as cash withdrawals, bill payments, cash transfers, account balance inquiries, and government money receipts, The bank representatives can generate income thanks to the streams of service fees that are provided. (Pooja and Palwinder, 2002).

Invariable Features of the Firm

Thus, the firm’s historical viewpoint, registration, or ownership—whether private or public are characterized as its Invariable Characteristics. engagement of the government in its controls that identify inclinations for collaboration, Size of the company: large companies provide larger profit returns due to their established market presence and superior distribution systems. This shows that the firm’s constant characteristics have an impact on how strategic alliances and acquisitions are made (Ngwili, 2016). Also, it was discovered that highly varied businesses prefer to collaborate more frequently than less diversified ones (Amir, Dianne and Arash, 2015).

Statement of the Problem

The goal of this study was to analyze data on strategic alliances with partner organizations, with a particular emphasis on invariable features of a firm and value creation in agency banking projects. Non-bank companies have altered the financial services industry’s competitive landscape by embracing non-equity strategic relationships, causing established institutions to reevaluate their business practices. Are the danger. According to Goldman Sachs, these companies will siphon off upwards of a trillion dollars in revenue each year from well-established financial services companies. Over the past three years, small businesses that sell on Amazon.com have reportedly received more than US$1 billion in funding.

According to Bukhari, (2020). A digital wallet is the instant payment option that is now well-liked by customers, according to Ricky and Pustay, (2016), who also noted that non-banking institutions were effective in capturing market share. For banks to maintain customers with their wallet services, they must up their game with speedy online payment processing. This is supported by Matokho, (2018), who argues that banks should develop technical solutions that work with smartphones and tablets rather than requiring the use of bulky equipment that must be carried around at all times to swipe a card. The majority of commercial banks in Kenya are focusing on digital banking and observe that 96% of their transactions take place outside of their branch locations. Because bank efficiency has been rising over time, the influence of digitization, along with other factors like interest rate caps and rising wage costs, has already been felt in Kenya’s banking business. There are fewer employees, either as a result of attrition or layoffs.

Since the banking industry is in charge of managing currency as a medium of exchange, the nation’s economy will suffer if these troubling tendencies are not addressed. The relationship between value creation in agency banking initiatives in Kenya and invariable features of a firm must thus be investigated in this study. According to Muthoka and Oduor’s, (2014) research on the effect of strategic alliances on organizational effectiveness, alongside over 44 enterprises vying for market share alongside multinational organizations, Kenya’s banking sector is thus characterized by ferocious competition.

In a report to GSMA Corporate, Francesco (2018). The development of mobile financial services is a threat to conventional financial banking models and is characterized by intense competition that causes losses in their yearly balance sheets. The limitations and gaps from past investigations are vague, according to Gryphons et.al., (2016). To address the void, this research examines the many dimensions of Invariable features of a firm and value creation in agency banking initiatives.

Objectives of the study

To assess the extent to which the invariable features of the firm influence value creation in agency banking projects in Kenya.

Research Hypotheses

The study sought to test the following research hypotheses: –

3Ho: There is no significant relationship between invariable features of the firm and value creation in agency banking projects in Kenya.

Theoretical Framework

Alluding to this discourse, the stakeholder theory will be used to examine Invariable features of a firm on value creation in agency banking projects. Edward Freeman the first proponent of the stakeholder theory in 1984, Based on the assumption that an organization’s alliances in partnerships are those entities that the organization fully relies upon for their survival in business, These groups include the organization’s clients, workers, suppliers, political group, natural/ environmental groups, local networks- communities, media groups, financial organizations, governmental/ nongovernmental gatherings, business competitors/contenders, vendors, temporary workers, and investors or shareholders. This view paints the corporate environment as an ecosystem of related groups, all of whom need to be considered and satisfied to keep the company healthy and successful always. All company stakeholders are interdependent.

Furthermore, an organization generates value for its own growth – for every partner. Stakeholder theory proposes that a business must try to maximize profit for its partners. Subsequently the need for the business is to serve the demands of the partners, and not simply the investors. The basic concept behind the stakeholder theory is that organizations which manage their partner connections adequately have endured longer and perform superior to those organizations that don’t (Shiller, 2015) Stakeholder theory concerns the clarifications of firm value creation in a focused/ competitive environment (Porter, 1980). Theory of stakeholder is a conceptual framework of business morals and organizational administration that addresses good and moral qualities in the management of a business Organizations ought to build up some important stakeholder competencies. (Leiblein, 2013).

Conceptual framework

This study was guided by the following conceptual framework

Figure 1: Conceptual framework for non-Equity financing strategic alliances on value creation in agency banking projects

Source: Researchers conceptualization 2023

The conceptual model presents the perceived relationships as formulated for testing. The conceptual model shows the various relationships among the variables in the Outsourcing financing strategic alliance and Value creation in agency banking projects. According to the model, Value creation in agency banking projects. is the dependent variable. Independent variable is presented by outsourcing financing strategic alliance with its corresponding indicators;

LITERATURE REVIEW

The researcher hopes to quantify this indicator for value creation in agency banking projects in this study by measuring capital efficiency, profitability, share price growth, economic value added, and the size of the growing market share, which is how Mwamuhye (2021) described the value creation in agency banking projects be measured. Cheboi (2020) also states that the basic variables influencing the success of strategic alliances are yet unknown, According to Wood (2020), value creation is the total of all capital claims made against the company as well as the market value of its debt and equity. By using concepts like return on investment (ROI), which is the measurement of profit margins and investment proceeds (Amici, Franco 2012), the authors of Islam, Mansoor, Rahman, and Waholo (2020) describe how financial value creation is defined in terms of money.

Only a few researchers have examined value creation in retail banking, according to Jongwe (2020). To improve or increase the value to their clients, many businesses are forging alliances and partnerships with other supply chain network members. strategic non-equity networks. In a case study, Reynolds (2021) notes that Toyota Company is aware of the value of developing strong bonds with its service suppliers. The goal statement of the Toyota Company indicates that to improve quality, reduce costs, and quickly grow new product lines, the company would “achieve supplier satisfaction” by subcontracting with other businesses. They might develop a professional connection that makes purchasing and selling a product easier.

According to Wairugi (2017), economic value added is an estimation of the economic profit earned by a company after taxes divided by the sum of all of its sources of capital. (Rofiq and Santaso, 2019). More professionals are studying what makes an alliance successful and establishing new techniques to determine how much value the firms are producing. (Seurey, 2015; Ngando, Ombati, Kiruchi, and Osiemo, 2017).

Invariable Features of the Firm and Value Creation in Agency

Banking Projects

Historical, social, political, cultural, economic, and environmental factors affect a firm’s constant characteristics. Historical context refers to previous events that have an impact on the present, whereas business history looks at the development of businesses, business practices, governmental regulation, and the social impacts of business. According to Kithuka (2012), some businesses specialize in single or integrated projects, while others focus on systems integration. Söderlund and Lenfle (2013) on the Making of a Project History: Revisiting the Past, Creating the Future describe how non-equity financing difficulties explain how integrated or single firms shape the execution of agency banking projects. This viewpoint frequently emphasizes relations between businesses and the government in attempts to minimize government and lessen the costs and responsibilities associated with taxes, regulations, and policies on private enterprise. (Soderlund and Lefle2013).

A third broad perspective on business and government ties is when business and government work together to address societal issues. This contrasts with the government acting as the regulator to make sure corporations behave in a socially responsible way.

According to Chabachib, Hersugondo, Adriana, and Pamungkas in (2019), Firm size is defined as the number of employees per establishment, employees per company, sales per firm, and value contributed per firm, is the fifth indication of the firm’s constant characteristics. Therefore, major companies can invest on a scale that excludes small companies. Since small businesses would have lower rates of return than those in major enterprises, approved banks are offered slots for agency banking projects based on the size or financial strength of the institution.

It is a given by Chabachib et,al.,(2019) that less resource-intensive tactics will be preferred by small organizations. The premise that huge companies have more financial resources, which makes them an appealing strategic alliance partner, supports this claim. Large businesses also enjoy a steady stream of significant transactions with high profit margins thanks to their strong market position and superior distribution methods. This shows that the firm’s constant characteristics affect how it makes strategic alliances. The claim was made by. Financial resource limitations are a common problem for businesses. This is typically brought on by a company’s limited capacity to raise further debt and equity financing. Compared to larger companies, this resource restriction affects small businesses more severely. Small businesses lack experience as well, which could hinder their capacity to obtain or manage strategic resources. (Barney and Baysinger, 1990; Poon and MacPherson, 2005; Gharaibeh, 2017).

Chabachib et al. (2019), writing on systemic harms and shareholder value, demonstrate that the failure of a systemically important financial firm will result in losses throughout a diversified portfolio. Gharaibeh, (2017) Compared to larger companies, this resource restriction affects small businesses more severely. It is expected that small organizations will favor a technology acquisition strategy that involves fewer resources because small firms also lack experience, which may limit their ability to acquire technology generally (Rambo, 2003; Chabachib et al., 2019).

Additionally, it was discovered that large, highly diverse companies prefer to collaborate more frequently than smaller ones (Mostafa and Buhuigwi, 2021). It is stated that large companies may gain more from strategic partnerships in terms of money transfer, outsourcing, and increased organizational value creation due to the limited resources of small businesses. According to the researcher, huge companies may gain more from strategic alliances than small companies do because of their greater resources.

According to Mostafa (2021), not all alliance participants can benefit equally from the alliance due to the unequal benefits between large and small partners. Value increases are noticeable when two high-tech companies collaborate to create or implement new technology. The study’s conclusion emphasizes the significance of comprehending a firm’s constant characteristics and the function of government policy in the growth of entrepreneurship and the economy.

RESEARCH METHODOLOGY

A pragmatic paradigm, which permitted the use of both quantitative and qualitative methodologies, was used in this study. In order to gather both quantitative and qualitative data and test hypotheses, a descriptive survey approach and a correlation research design were both used (Wambugu, Kyalo, Mbii, and Nyonje, 2015).

200 people made up the study’s sample, which was chosen using Yamane’s (1967) sampling size method from a target population of 400 supervisory and support staff for agency projects. Questionnaires and interviewing techniques were the primary means of collecting data in this study. (Mugenda and Mugenda, 2014; Wambugu et al., 2014; Kothari, 1999).

Texting on smartphones and other direct or indirect personal interactions were a part of the interviewing process. The interviewer contacted the agency unit supervisors at the commercial retail banks and personally acquired information from pertinent sources in circumstances where a direct inquiry was being made. Interview guides were suitable for in-depth inquiries. Interviews with bank agency unit supervisors regarding alliance issues in Kenyan commercial retail banking rooms were undertaken. Specific data was effectively acquired using this method, and response rates were frequently high.

At the Kenya National Bank, a site unrelated to the study, a pilot study was conducted. According to Mugenda & Mugenda’s 10% theory of sampling, the pilot sample, or 10% of the whole sample, consisted of 20 people. The questionnaire’s pre- and post-test results were utilized to determine how comprehensible the changed version was. The researcher developed an interview guide and questionnaire, had them reviewed by professionals, and then used a content scaling framework to evaluate and improve the content validity of the questionnaire. The art of content, according to Fiona (2019), entailed making wise choices, creating effective exam questions, and juggling all the many sacrifices that had to be made.

The results were based on how accurate the content of each of the 50 items was. The rest were changed or adjusted based on the expert’s advice for those with a content validity index more than 0.75 to remain. The degree to which the measuring instrument yields identical results on repeated tasks is how Oug and Shuhwa (2020) describe an instrument’s reliability. The study’s test-retest procedures produced the data needed to assess dependability. The internal consistency and dependability of the instruments were evaluated using Cronbach’s alpha-coefficient correlation. The researcher evaluated the equipment’s dependability using the test-retest procedure. A number above 0.7 was considered to be acceptable when reliability was verified.  (Plummer and Ozcelik, 2015).

The study’s hypotheses were investigated using correlation and multi-regression analysis, both of which were carried out at 0.05 significant levels, to assess both the quantitative and qualitative data. Descriptive and correlation statistics, along with observational methodologies, were used. By combining qualitative data with content and narrative analysis, the average, the composite mean, and the standard deviation were used to make statements about the value creation in outsourcing and agency banking initiatives. At a significance level of 0.05, correlation coefficients were employed to test the hypotheses. The following regression models were employed to test the hypotheses: Ho. Value generation in agency banking projects and strategic alliance outsourced finance are not significantly correlated.

RESULTS AND DISCUSSIONS

180 of the 200 sampled respondents were able to access the research questionnaires and complete them. On the basis of the research questions, a purposive sample of 50 respondents was used to conduct the interviews. 90% of the answers were therefore returned. The return rate was deemed enough for the research. Mugenda et al,. (2013) state that. For a response to be useful and thus acceptable, it must be at least 50%.

Demographic Characteristics of the Respondents

The distribution of respondents based on particular demographic and background variables needed to be determined. This would guarantee that the study project’s stakeholders’ points of view were properly represented. As a result, demographic data was gathered and examined, including the distribution of respondents by demographic traits, their function in the project, how long they had been employed by the participating organization, their level of education, and their age and gender. Table 4.1 presents the findings.

Table 4.1: Respondents’ Distribution by Demographic Characteristics

Source: Researcher own source

According to Table 4.1, participation were well distributed across the four participating organizations, with KCB 67 (37.2%), Equity 39(21.6%), Cooperative bank 36(20%), and ABSA 38(21.1%) being nearly evenly represented. As a result, it was possible to gather representative opinions from the participating organization to permit drawing of conclusions. The study discovered that the agency personnel were adequately represented, with 160 (88.8%) of them being employees and 20 (11.2%) being supervisors. As a result, the data was typical of those involved in the agency banking programs, enabling accurate inferences and generalizations about the research variables. The results show that even though the majority of respondents (68, or 37.7%) indicated that they had only been employed at those specific firms for between one and two years,

A total of 118 people, or 65.4%, had spent at least 4 years working for these organizations. Particularly, 50 (27.7%) had worked there for between three and four years, 30 (16.6%) for between five and six years, 20 (11.1%) for between seven and eight years, and 12 (6.6%) for more than nine years. The findings demonstrate that participants were able to comprehend their processes, which would have provided accurate data for the study.

Regarding academic qualifications, the study’s participants met the requirements to participate in the agency banking project’s implementation. The majority of study participants—68 (37.3%) had at least a high school diploma, 92 (51.1%) had at least a certificate, and 4 (2.2%) had a master’s degree. As a result, it is anticipated that agency banking services will

Tests for Statistical Assumptions of Regression and Likert scale

The response return rate indicated that there were 180 responses (n = 180). It was possible to perform a parametric analysis because n>30 and the population sample distribution were both normal. To determine whether the research’s data had a normal distribution, a correlation analysis was performed on them. Because the residuals are normally distributed and homoscedastic, statistical methods like correlation, regression, t-tests, and ANOVA can be used without having to worry about linearity.

Value Creation in Agency Banking Projects

In this analysis, value generation in agency banking programs was the key variable. A 10-item, 5-point Likert scale was used to measure the dependent variable. After scoring replies on a Likert scale from 1 to 5, the frequency and associated percentage were calculated. The means and standard deviations for each item were computed. The results are shown in Table 4.2.

Table 4.2: Value creation in agency Banking Projects                                                                                         

Source: Researchers own source

Using Table 4 2, The fact that the item mean (Mean=2.96) is lower than the composite mean (Mean=3.358) in relation to claim 1, which was put forth by 180 survey participants, implies that the line item has no impact on value creation in agency banking projects. As evidenced by the item SD = 1.33, which was greater than the composite SD = 0.366, this runs counter to the respondents’ varied viewpoints.

In accordance with Statement 2, the average score among the 180 participants (Mean = 3.48) was higher than the average score for agency banking projects (Mean = 3.338), indicating an improvement in capital efficiency. The line-item standard deviation (SD) was 1.37, as opposed to a composite SD of 0.36. demonstrate the range of opinions among the responders

The initiative added value to agency banking programs, as indicated by the line-item mean (Mean = 3.65) for statement 3 from 180 respondents, which was higher than the composite mean (Mean = 3.338). Line-item SD=1.34 being bigger than the composite SD=0.366 revealed that there was a difference in opinion among respondents, according to Koronkey (2013), who defines the element affecting share value creation as the current cost of all future benefits owed to asset owners. These results agree with the explanation provided by Koronkey (2013). Onje (2017) looks at capital efficiency, profitability growth, share capital, increasing market share, and cash value added to members’ welfare in order to bolster this claim.

The findings for statement 4 showed that when the line item mean (Mean = 3.6) is higher than the composite mean (3.358), it has an impact on the value creation of agency banking activities. Given that the line-item SD was 1.41 and the composite SD was 0.366, it was inferred that respondents’ opinions varied.

Results for statement 5 showed that the agency banking initiative generated a significant amount of value, with a line-item mean of 3.52 and a line-item SD of 1.32 higher than the composite mean of 3.35. respondents’ opinions on the composite SD=0.366 varied. It agrees with Mwamuhye et al.’s findings from 2021, which found that an increase in share value resulted in future share benefits.

In relation to statement 6, As the profit margin increased across the 180 participants, the scenario of value creation for the project was realized, as shown by the significant difference between the composite mean’s (Mean = 3.358) and the line-item mean’s (Mean = 3.561) means. The line SD, which was 1.353 times bigger than the composite SD, likewise demonstrated the respondents’ differing perspectives. This result supports Sand et al.’s (2018) theorem that dividend payments and increases in share value are how such income and projected profits are actually realized.

Findings for item number 7 revealed that agency banking activities generated a significant amount of value, with line-item means (Mean=3.644) higher than composite means (Mean=3.33). There were differences in the respondents’ attitudes, as seen by the line-item SD of 1.34 being larger than the composite SD of 0.366. With a line-item mean (Mean=3.66) that was greater than the composite mean (Mean=3.33), the data supported claim 8 that agency banking projects generated high levels of value. The line SD was 1.34 more than the composite mean SD, which was 0.366, proving that multiple participant viewpoints existed.

For claim 9, the composite mean was lower (Mean = 2.544) than the individual mean (Mean = 3.358). Line item is irrelevant for projects utilizing agency banking for determining value. However, the line-item SD for statement number 10 was less than the composite mean for value creation for agency banking projects (Mean = 3.358). This suggests that the line item has no impact on value creation for agency banking projects. The item mean of the statement that death benefits increased due to cash value addition had a mean of 3.05. The fact that the line SD of 1.33 is higher than the composite SD of 0.366 indicates that the participants had different opinions.

Invariable Features of a Firm and Value Creation in Agency Banking 

Projects

A 10-item, five-level order was used to evaluate a firm’s constant features.1=Strongly disagree, 2=Disagree, 3=Neutral, 4=Agree, and 5=Strongly agree on a scale of 1 to 5. As a result, with respect to each item, the emerging data was summarized and aggregated as response frequency and corresponding percentage. Additionally, the mean value and standard deviations (SD) for each item were calculated. Table 4.3 provides a summary for all 10 items.        

Table 4.3: Invariable Features of a Firm and Value Creation in Agency Banking Projects Statements

Referring to the findings in Table 4.3 on the first statement, “Government regulations determined collaboration tendencies,” the findings revealed that, of all the participants, 72 (or 40%) strongly agreed with the statement and 63 (or 35%) agreed. Thus, a total of 135 respondents, or 76.9%, agreed that government restrictions influenced people’s propensities for collaboration. The item line mean (Mean = 3.944) was higher than the composite mean (Mean = 3.36) showing that government restrictions influenced value creation in agency banking initiatives. However, 25 (13.9%) of participants were cumulatively in disagreement while 20 (11.1%) were neither agreeing nor disagreeing. A divergent viewpoint among some of the participants is indicated by the line-item SD=1.182 being larger than the composite SD=0.23.

Results showed that among the participants, 42 (23.3%) agreed, 40 (22.3%) strongly agreed, and 60 (33.3%) were indifferent on statement 2, which claimed that “government regulations curbed unethical behavior among employees.” The item line mean (Mean = 3.383), where item mean was considerably above composite mean (Mean = 3.36), indicated that 38 (21.1%) of the survey participants did not feel that government rules had a major impact on employees’ unethical behavior in agency banking initiatives. Government laws so affected how value was created in agency banking ventures. Line-item SD=1.198 higher than composite SD=0.23 suggests that some participants had divergent viewpoints. According to the findings, the third statement—that “government involvement influenced cyber incidence reporting”—was true for value creation in agency banking projects, where the item mean—3.394—rose above the composite mean (3.36). In total, 91 (51%) of the participants agreed, compared to 47 (26%) who disagreed and a sizeable 42 (23%) who were neutral. This demonstrates how government engagement affected the reporting of cyber incidents. Line-item SD=1.134, however, is greater than composite SD=0.23, indicating that some individuals had divergent viewpoints. The managers who were interviewed shared this viewpoint, and one of them stated that:

               “As soon as a new email-borne virus appears, businesses disable links to the outside world and wait. Many users worry that their privacy rights may be curtailed if the government goes against cybercriminals in a dramatic manner  to cause widespread public outrage and support government warnings. [Interview: Manager 1, 15 October, 2021].”

The findings on statement 4 “Nature of the Firm influenced strategic alliance acquisition behavior” showed that, of all participants, 48 (27%) agreed that nature of the firm influenced strategic alliance acquisition behavior, and another 32 (18%) highly agreed. 80 (45%) respondents agreed as a result. A total of 52 (29%) were neutral, while 48 (26%) disagreed. The item line mean (Mean = 3.3) was lower than the composite mean (Mean = 3.36), as evidenced by this. As a result, the firm’s character had no bearing on how it made strategic alliances for the project involving agency banking. However, the fact that line-item SD=1.17 was larger than composite SD=0.23 suggests that some individuals had divergent opinions.

The findings for statement 5 “Historical aspect of the firm influenced capital efficiency “showed that 85 (47%) of the participants overall agreed with the assertion, while 57 (32%) disagreed. The item line mean (Mean 3.316) was lower than the composite mean (Mean = 3.36) in the results, indicating that 38 (21%) of the participants were neutral towards the statement. Line-item SD=1.299, however, is larger than D=0.123, and the composite SD=0.23 shows that some individuals had divergent viewpoints. William Cronon (2022), who asserted that narratives cannot contradict established facts, agreed with these beliefs.

Results for statement 6 “Size of the firm influenced cash value added”—showed that 32 participants (18%) and 46 participants (25.5%) in the participant pool highly agreed with the statement. Because the item line mean (Mean = 3.18) was lower than the composite mean (Mean = 3.36), 78 (43.5%) respondents overall agreed, 40 (21.9%) were indifferent, and 62 (34.6%) overall disagreed that the size of the firm affected cash value contributed in agency banking projects. Therefore, the firm’s size had no impact on the cash value contributed in projects involving agency banking. However, the fact that line-item SD=1.35 is larger than composite SD=0.23 suggests that some participants had divergent opinions.

Results for statement 7 “Diversified firms increased market share” showed that 48 participants (26.6% of the total) strongly agreed with the opinion, while 46 participants (25.5%) agreed showed agreement. According to 94 (52.1%) of the study’s participants, this demonstrates that a diversified organization has expanded its market share. The item line mean (Mean = 3.34) is lower than the composite mean (Mean = 3.36), indicating that this incident did not significantly impair value creation. However, 20 (11.1%) of the individuals strongly disagreed, 40 (21.9%) disagreed, and another 26 (15%) were neutral. The observed event suggested that diversified enterprises had little impact on growing market share. However, line-item SD=1.41 higher than composite SD=0.23 indicating that some participants had divergent views.

               According to one of the managers whose opinions were sought out,

               “Diversified organizations can achieve tradeoffs between overall risk

               and returns that are superior to the choices available for agency

                banking projects. [Interview: Manager 1, 15 October, 2021].”

Results showed that among the participants, 42 (23.3%) agreed with statement 8 that “distribution channels influenced profitability,” 58 (32.2%) strongly agreed with the statement, and 21 (12%) were neutral. The item mean (Mean=3.44), where the item mean was significantly above composite mean (M=3.36), indicated that distribution channels influenced profitability for value creation in agency banking projects. However, 59 (33%) of the participants disagreed collectively that distribution channels influenced profitability. There were differing viewpoints among the participants, as supported by the questioned Managers, and the line-item mean was 1.41 points higher on Saturday.

                “Both costs and revenues are driven Not only by products but also

               by distribution channels,” one of the managers claimed.

               [Interview: Manager 3 December, 2021].”

Results indicated that among participants, 44 (24.4%) agreed, 36 (20.2%) strongly agreed, and 42 (23.3%) were neutral on the statement 9 that “size of the firm influenced economic value added”. The item mean (Mean=3.2) where the item mean was significantly below composite mean (M=3.36) indicated that size of the firm did not significantly influence economic value added in agency banking projects. However, 58 (32.1%) of the participants collectively disagreed that size of the firm influenced economic value added. The line-item mean=1.3 above SD=0.123 reveals that the participants’ opinions varied.

Results indicated that among the participants, 44 (24.5%) agreed, 36 (20%) strongly agreed, and 42 (23.4%) were neutral on the statement 10 that “diversified firms influenced growth in share prices.” The item mean (Mean=3.23) was significantly lower than the composite mean (M=3.36), indicating that diversified firms did not affect value creation in agency banking projects. However, 58 (32.1%) of the participants disagreed collectively that diversified firms influenced growth in share prices. However, line-item SD=1.24 was higher than composite SD=0.23, showing that some individuals had divergent viewpoints.

Correlation Analysis between Invariable features of a Firm and Value Creation in Agency Banking Projects 

To ascertain the connection between a firm’s constant characteristics and value creation in agency banking projects. In the agency banking projects covered in Table 4.4, the relationship between a firm’s invariable characteristics and the generation of values was examined using the Pearson correlation coefficient.

Table 4.4: Correlation Analysis between Invariable Features of a firm and Value Creation in Agency banking Projects

Source; Researchers own source 2023

**. The value is significant at 0.01 levels (2-tailed).

Output Table 4.4 shows a low degree association (R = 0.307) that is statistically significant (p-value =.0.104, p > 0.05 confidence level) is shown in Table 4.12. F (1, 178) =2.74, P- Value=0.104>0.05 (confidence level) indicating that there is no significant association between invariable aspects of a firm and value generation in agency banking initiatives, leading to the adoption of the null hypothesis 3Ho: There was no association between value generation in urgent banking projects and constant company characteristics.

Regression Analysis of Invariable features of a Firm Influence Value Creation for Agency Banking Projects

For agency banking projects, two factors were modeled through regression to ascertain how constant characteristics of a firm affect value generation. For each participant, the sum of the scores for the items on each scale was calculated to produce a continuous range of values. Therefore, the minimum score for a firm’s invariable characteristics was 10, and the maximum score was 50; likewise, the least score for value creation in agency banking projects was 10, and the highest score was 50. The results are shown in Table 4.5.

Table 4.5: Regression Analysis of Invariable Features of firm and Value Creation for Agency Banking Projects

Source: Researcher own source 2023

1. Dependent Variable: Value creation for agency banking project
2. Predictors: (Constant),

Table 4.5 shows the regression line Y=24.77+0.3117. The model with invariable features offers a better fit than the one where Y=bo+e results from the absence of the independent variable. R square = 0.052 shows that for each of a firm’s invariable attributes, value generation in agency banking projects changed by 5.2%. Invariable features explained up to 5.2% of the variance.

CONCLUSIONS

There was no association between value generation in urgent banking projects and constant company characteristics. We upheld the null hypothesis. that there is a no significant relationship between invariable features of a firm and value creation in agency banking projects.

RECOMMENDATIONS

Outlined are the recommendations for policy

1. Ensure your staff are trained and can tell customers about these Invariable features in a firm and benefits to leverage.
2. Find out more about knowing your products and services, to enable compliance and quick project execution.
3. Examine influence of company characteristics on corporate governance in agency banking projects.

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