The service delivery system approach is a key strategy for innovative initiatives and solutions development in firms of different sizes because of low costs and implementation requirements. However, service delivery systems face different pressures in the everchanging service environment that offers personalized services which require great quality, timely delivery and better performance. In Kenya, the banking sector has displayed little corporate position and offer customer various services with less concern of their needs with different banks posting different operating results. This led to the collapse of several banks among them the Charter House bank in 2005 while Dubai and chase banks were put under statutory management. This research thus aimed at determining the relationship between service delivery systems design and operational performance of Kenyan banking entities. The study was based on the unified services theory, service strategy triad theory and general systems theory. This study adopted a cross-sectional study design and undertook a census 42 Kenyan banks. The research used primary data which was gathered through questionnaires which dropped and picked to the bank’s operational managers or their equivalents. Descriptive statistical tools and the regression model were used for data analysis using the SPSS statistical software. The results revealed a positive and significant interrelationship between the structural components and operational performance of Kenyan banks. The results also indicate a positive and significant relationship exists between the infrastructural components and operational performance of Kenyan banks. Finally, the finding document that integration components positively affected Kenyan banks operational performance. The study concluded that structural, infrastructural and integration components of service delivery systems significantly and positively enhance the operational performance. The study recommended that Kenyan banking entities management should ensure they link their structural, infrastructural and integration service delivery systems components with the organizations’ strategic objectives to enhance banks operational performance.

show more