Innovative Strategies and the Performance of Savings and Credit Cooperatives in Nyeri County, Kenya
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Date
2019
Authors
Mung’ora, Muriuki Nahashon
Kiiru, David
Journal Title
Journal ISSN
Volume Title
Publisher
IJCAB Publishing Group
Abstract
Reforms in banking industry have brought about many structural changes in the sector and
encouraged competition. As a result, financial institutions like SACCOs have adopted
competitive strategies including innovation strategies. Despite the recognized importance of
financial innovation and an extensive descriptive literature, there have been surprisingly few
empirical studies. This situation has denied SACCOs the much needed information regarding
this important area of financial innovations sometimes leading to reverse causality in the
innovation-financial performance relationship. The purpose of this study was to investigate
innovative strategies and the performance of SACCOs in Nyeri County, Kenya. The study was
guided by the following objectives: to establish how product innovation influences the
performance, to assess the influence of organizational innovation on the performance, to
determine the influence of process innovation on the performance of SACCOs, and to find out
how marketing innovation affect the performance of SACCOs. The study utilized descriptive
research design. It was carried out as a Census among the 6 licensed SACCOs in Nyeri
County. The main instruments for primary data collection were questionnaires which
consisted of structured and unstructured questions. The data was then analyzed using
descriptive statistics and inferential statistics. Multiple regression was done to determine the
relationship between the dependent and independent variables. The study findings were
presented in tables and charts. Based on the findings of the study, it was concluded that the
four independent variables (product innovation, organizational innovation, process
innovation and marketing innovation) were important predictors of performance of SACCOs
since each was statistically significant. The findings showed a positive correlation between
the independent variables and the dependent variable. The study recommends that SACCOs
should find creative ways of adopting and implementing product innovation but within the
rules and guidelines of the banking industry. Organizational innovation could be improved
through the human resource department getting better ways of freedom and autonomy among
the employees. The services within the financial intermediaries in the SACCO should also be
improved to become more helpful in facilitating the needs of the customers.
Description
An Article Published in International Journal of Current Aspects
Keywords
Innovative Strategies, Product Innovation, Organizational Innovation, Process Innovation, Marketing Innovation, Performance of Savings, Credit Cooperatives
Citation
Muriuki, N., & Kiiru, D. (2019). Innovative Strategies and the Performance of Savings and Credit Cooperatives in Nyeri County, Kenya. International Journal of Current Aspects, 3(VI), 216-234. https://doi.org/10.35942/ijcab.v3iVI.86