BC-School of Business

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Browsing BC-School of Business by Author "Muriuki,Njiru"

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    Strategic Alignment And Performance of Savings and Credit Co-Operative Societies in Nairobi City County, Kenya
    (Kenyatta University, 2023-11) Muriuki,Njiru
    By taking into account and evaluating the organizations’ internal and external factors that operate, strategic alignment entails the matching of organization day to day process and activities to the strategic goals. The SACCOs in Kenya have anchored their operations on strategic alignment to remain competitive. SACCOs in Kenya are confronted with a number of challenges hence have been compelled to adopt variety of strategic management techniques. This study investigated how strategic alignment affected SACCO performance in Nairobi, Kenya. It specifically determined the impact of operations alignment, customer support, technical alignment, and financial resource alignment on the performance of SACCO. The anchoring theory was strategic alignment model. The resource-based view, contingency theory and firm growth theory were also used to inform the study. There were 184 SACCOs operating in Nairobi City and which included formed the population of the study. Each of the 184 SACCOs' director of strategic management served as the observational unit. Consequently, 184 SACCO strategic management directors were the study's target group. The sample size of 126 SACCOs was calculated using Yamane formula. To choose the 126 SACCOs, simple random sampling shall be utilized. Data was collected using closed ended questionnaire. The construct validity of the questionnaire was evaluated using the supervisor's and experts' opinions, and questionnaire reliability was examined by adopting the Cronbach's Alpha technique and variable with Cronbach alpha of over 0.7 were considered. The analyses of data entailed descriptive statistics which included means and standard deviation while inferential tests included using multiple regression model that determined relationship of variables under investigation. Charts, graphs, and tables were used to display gathered data. Descriptive finding of the study established that operational alignment is crucial in enhancing performance through running day to day activities, confronting challenges, aligning operations, defining culture, aligning operations to long term and having actionable plans. Customer support is critical in realizing desired SACCO performance by creating client-centered, creating a conducive environment, establishing a service desk that address issues, bringing quality services, building good image and exploring feedback mechanism. It also showed technology alignment has been revolutionary in conducting activities of the SACCO. Financial alignment has been at center of all operations of SACCO thus crucial in its performance. The coefficient inferential finding revealed that there exist a positive and significant association among operational alignment, technology alignment, customer support and financial resources alignment on performance of SACCOs in Nairobi County. On regression finding, it revealed that the coefficient of operational alignment (β=.400) had the highest positive effect on the Performance of SACCOs in Nairobi County, with customer support (β=.244) coming second, Financial Resources (β=.216) and Technological alignment (β=.208) in that order and all were statically significant at 5% significance level. The study recommends development of a robust strategy that address any emerging challenges within the organization effectively and efficiently. Management establishes a customer care desk in every opening of the organization equipped with all products and resources to address issues adequately. Adoption of proper budgeting framework before an organization incur expenditure. Upgradation of technology periodically to avoid using obsolete technology that might compromise integrity of systems and lower investor confidence. Additionally, strengthening of accountability measures to enhance prudent utilization of resources