Abstract
The study was about impact of intranet on effective banking operations, a case study of
National Microfinance Bank (NMB) Iringa. It was intended at evaluating the
relationship between speeds of intranet information, quantity of intranet information,
quality of intranet information and effective banking operations. The case study design was used to reveal the necessary and required data to answer the
research questions. Questionnaires were used to collect data from different respondents
which were then analyzed through simple table and frequency graphs. Both primary and
secondary data sources were used for the study. Data were analyzed by using SPSS
version 22. The findings revealed that there is direct relationship between speeds of
intranet information, quantity of intranet information, quality of intranet information and
effective banking operations. The results obtained from the study have implications to the management of NMB bank
and even to their customers on improving
1.1 Introduction
This chapter consists of background to the research problem, statement of the problem,
research objectives, research questions, hypotheses, and significance of the study, scope
of the study, definition of key terms as well as the Organization of Study.
1.2 Background of the study
Most of the definitions of an intranet found in literature refer to its Intranet-like
technology and its internal use within an organization. Accordingly, Choo, Detlor and
Turnbull (2000) define an intranet as “a set of application built on an Intranet enabled
infrastructure meant for internal use only by employees of a single organization”. Duane
and Finnegan’s (2003) intranet is “an application of Intranet technology within an
organization for the purpose of information dissemination, communication, integration
and collaboration”.
Over the last decade the world has witnessed an emergence of technology that allows
real time interactive communication, namely the Intranet (Hornick, 2008). The benefit
from using this new medium has been realized primarily for communications between
an organization and its external stakeholders. Borne out of the Intranet, the corporate
Intranet enables organizations to develop internal networks and strengthen relationships
with stakeholders within the organization (Gupta, 2007).
It has been considered that in order to be highly profitable an organization should be
consciously establishing, maintaining and enhancing long-term customer relationships
(Gronroos, 2008). It is argued that in order for this to occur an organization should
concentrate on building and sustaining strong relationships with its internal customers,
i.e. corporate stakeholders and employees. Corporate Intranets “provide an inexpensive
yet powerful way to transparently deliver the vast information resources of a corporation
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to each employee’s desktop worldwide” (Gulati, 2007). The corporate Intranet is vital in
building relationships between stakeholders and the organization, as well as improving
internal corporate communication by encouraging “people to communicate more
effectively” (Rogers, 2006).
Galbraith conceptualizes organizations as information processing systems and he sees IT
as way of increasing their information processing capabilities (Galbraith 2013). Intranet
systems are web based technologies that have the potential of increasing the quantity,
quality and speed of internal communication in organizations. Intranets may also support
collaboration and Quantity of intranet between employees. From this perspective
intranet enhance information processing capabilities and business effectiveness
(Premkumar. 2005). Curry et al. (2010) argue that intranets increase effectiveness
because they “improve the ability to deliver the right information to the right people at
the right time”.
The impact of information technologies (IT) in business is well researched, especially in
how IT reduces transaction costs and shapes industries (Brynjolfsson, 1994; Malone,
1987). However, the impacts of information technology inside the organizations, such as
their impact on sharing of information, are topics less well researched. Therefore, the
aim of the present study is to gain an insight into the ability of the Intranet to impact
banking operations through the quantity, quality and speed of disseminated information. 1.3 Statement of the Problem
Intranet if well used can increase business effectiveness. Quirke (2008) defines
internal communication through its role in the company: “Internal communication is a
means to an end, not an end in itself – and part of its rationale is to help turn strategy
into action by engaging, informing and directing employees.”
However, this is not as easy as it should be, as Van der Hooff (2006) gives four general
complaints about intranets:
1) There is too much information on the intranet (quantity),
2) Information is not properly categorized and organized (quality),
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3) It is difficult to navigate in the intranet (speed), and
4) It is even more difficult to find the information one is searching for (out dated).
Out-of-date sites and broken links are the most critical concerns in the intranet
rebuilding project at Halifax Bank of Scotland studied by France (2007).
All these studies were done in more developed countries than Tanzania. The use of
technology in Tanzanian Banks still lags behind (Maliki, 2008). Therefore, this study
seeks to examine the impact of intranet on banking operations especially by examining
the three out of four complaints by Van de Hooff; quantity, quality and speed.
1.4 Objectives of the study
1.4.1 General objective
The general objective of this study was to examine the impact of intranet on effective
banking operations, a case study of National Microfinance Bank (NMB) Iringa.
1.4.2 The specific objectives
i. To determine the relationship between quantity of intranet information
and banking operations
ii. To determine the relationship between quality of intranet information
and banking operation.
iii. To determine the relationship between speed of intranet information
and banking operation
1.5 Research questions
The study aimed at answering the following research questions:
i. To what extent does quantity of intranet information relate to the banking
operations?
ii. To what extent does quality of intranet information relate to the banking
operations?
iii. To what extent does speed of intranet information relates to the banking
operations?
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1.5. Research Hypothesis
This study was guided by the following hypothesis.
H1: There is significance relationship between quantity of intranet information and
banking operations.
H2: There is significance relationship between quality of intranet information and
banking operations. H3: There is significance relationship between speed of intranet information and
banking operations.
1.6 Significance of the study
Research has its special significance in solving various operational and planning
problems of business and industry (Kothari, 2004). The findings of this study are
expected to be useful to the NMB, other banks, other researchers, and of course the
researcher. The following are the significance of this study: – 1.6.1. To NMB
The findings of this study are expected to fill the existing gaps in knowledge on the less
known about the impact of intranets on banking operations in NMB. The findings of this
study will inform NMB about the impact of intranets on daily operations of the bank. 1.6.2. To Other Banks
Moreover, the information from this study can be beneficial and usefully guidelines to
other banks at various levels of implementing intranets for effective banking operations
1.6.3. To Other Researchers
The study will add new knowledge to the researchers especially when the topic of
impact of intranets on effective banking operations is under discussion
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1.6.4. To the Researcher
The study can also be used as a reference to academicians and other student undertaking
same field on matters patterning to customer retention studies. Also the study will be
useful to the researcher since it serves as the partial fulfillment of the requirement for the
award of the Bachelor Degree of Accounting and Finance with Information Technology
from Ruaha Catholic University.
1.7 Scope of the study
The scope was in consideration of the impacts of intranet on effective banking
operations the purpose of this research considering only banking sectors a case of NMB
Iringa. All staff and managers of NMB Iringa were questioned for the purpose of getting
relevant useful information, also to determine how intranet impact banking operations.
The recommendation and the conclusion based only on the information gathered.
1.8 Definitions of the keys terms
Intranet: An intranet is described as an internal or local computer network in an
organization’s private network and a smaller version of the Intranett, with websites that
appear and function as a typical web-site but are only accessible to authorized internal
stakeholders (Capron & Johnson, 2004; Dlabay, 2006; Norton, 2006; O’Brien &
Marakas, 2006).
Bank: A bank is an institution, usually incorporated with power to issue its promissory
notes intended to circulate as money (known as bank notes); or to receive the money of
others on general deposit, to form a joint fund that shall be used by the institution, for its
own benefit, for one or more of the purposes of making temporary loans and discounts;
of dealing in notes, foreign and domestic bills of exchange, coin, bullion, credits, and the
remission of money; or with both these powers, and with the privileges, in addition to
these basic powers, of receiving special deposits and making collections for the holders
of negotiable paper, if the institution sees fit to engage in such business.”( In 1899, the
United States Supreme Court (Austen)
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Banking: Banking can be defined as the business activity of accepting and safeguarding
money owned by other individuals and entities, and then lending out this money in order
to earn a profit. However, with the passage of time, the activities covered by banking
business have widened and now various other services are also offered by banks. The
banking services these days include issuance of debit and credit cards, providing safe
custody of valuable items, lockers, ATM services and online transfer of funds across the
country / world
1.9 Organization of the Study
This study comprises five chapters. Chapter one unveils the problem which informs the
study and its context. It provides the justification for the study. Chapter two presents a
review of relevant literature, synthesis and research gap to the study. Chapter three
describes the research methodology and procedures of data collection and analysis.
Chapter four entails data presentation, analysis and discussions, while chapter five
provides the summary, conclusions and recommendations of the study. References and
appendices cover the last part of the study