Corporate Growth Strategies and Performance of Saccos in Kitui County, Kenya
Mutua, Justus Nzonzo
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Increased competition in the Kenyan market has forced SACCOs to rethink their corpotate growth strategies as a way of achieving improved performance. This research aimed at examining the impact of corporate growth strategies on the performance of SACCOs in Kitui County. The study was based on key specific objective involved with examining the impact of product innovation cost leadership , focus and product differentiation strategy on the performance of SACCOs in Kitui County. In support of the research are four key theories of Ansnoff’s product market growth approach, the game approach and stakeholder theory as well as the Porter’s generic model. The study intended to utilize descriptive research technique while focusing on 3 SACCOs operating in Kitui County. The study selected 129 management staff participants from the three SACCOs with sample of 65 being considered as the target population. The study utilized self-administered questionnaires in collecting primary data which was analysed by descriptive statistics like percentages, standard deviations, and mean with the support of SPSS and presented via percentages, graphs , chart and tables. Pearson’s Product Moment Correlation (r) was derived to reflect on the strength of the connections. Adjusted R2 was also utilized in measuring the amount of variation in the dependent variable performance as explained by the independent variable. Academicians and researchers gained knowledge and ideas on loan recovery and strategic interventions and use the same to advance research in their fields of interest in researching more from the gaps identified in this study. It was established that corporate growth strategies selected which include cost leadership, product innovation, market focus and product differentiation significantly and positively influence the performance of SACCOs in Kitui County. The study concluded that the SACCOs to a significant extent embraced cost leadership strategy through embracing high levels of efficiency, technology, lean operations and optimizing on resource use in a diligent and transparent way. It was further concluded that the SACCOs applied product innovation strategy to a significant extent through creation of new products, improved service delivery, customizing products to market needs and coming up with new proudcts. The study also concluded that the market focus strategy was applied to a moderate extent by the SACCOs to improve their performance and to a little extent applied the product diversification strategy by making their products unique, distinct and embracing quality. The study recommends that the SACCOs need to employ hybrid strategy which involves integration of the corporate growth strategies to achieve peak performance. Further studies should be carried out in other counties to validate findings from this study.