Strategic Positioning and is It a Useful Construct in Improving Performance of Microfinance Institutions in Kenya
Loading...
Date
2023-10
Authors
Kapukha, Jackline Nekesa
Muathe, Stephen Makau
Journal Title
Journal ISSN
Volume Title
Publisher
IJRBS
Abstract
This paper aims to examine the effect of strategic leadership, resource allocation, information
technology, customer focus, and differentiation on the performance of microfinance institutions in
Nairobi City County. The study was founded on a resource-based view, dynamic capability and lifecycle theories. A target of 300 employees was targeted from which a sample of 172 research
participants was recruited. The sample was selected through a combination of both stratified and
sampling techniques. Questionnaires were used for primary data collection. Analysis used both
descriptive and multiple regression analyses. The findings of the study indicated the urgency for
microfinance organizations to adopt growth strategies that encompass innovative digital
advancements, the introduction of novel products, innovation-focused strategies, and the digitization
of services. The findings further highlighted the pivotal roles played by strategic positioning, strategic
leadership, information technology integration, and differentiation in significantly shaping
microfinance institutions’ performance. The findings also indicated that a unit enhancement of
strategic positioning indicator had a significant enhancement on their individual performance.
However, the effect of customer focus and resource allocation did not exhibit the same level of
significance. The study recommended the reinforcement of strategic positioning, optimized resource
allocation, embracing technological integration, and an unwavering focus on customer needs. The
study recommended the exploration of diverse leadership styles, resource allocation strategies, and
the undertaking of comparative analyses to draw insights into the effects of these factors on
microfinance institutions.
Description
Article
Keywords
Strategic Positioning, Strategic leadership, Resource allocation, Strategic leadership, Customer Focus
Citation
Kapukha, J., & Makau, M. S. (2023). Strategic positioning and is it a useful construct in improving performance of microfinance institutions in Kenya. International Journal of Research in Business and Social Science (2147- 4478), 12(7), 136–152. https://doi.org/10.20525/ijrbs.v12i7.2909