Abstract:
We used data derived from 130 deposit-taking firms in Kenya to
determine how boards influence banks’ innovativeness. Analyses reveal that
board members’ openness, board chairman’s self-efficacy, board members’
expertise and board independence all have a positive and significant effect on
bank innovativeness. Thus, boards play a vital role in fostering innovativeness
when members are open to one another, have strong industry knowledge and
experience, are independent, and are led by an able and competent chairman.
This article provides an understanding of how board leadership affects bank
innovativeness in Kenya.