Does board leadership influence bank innovativeness in Kenya?

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.