Dynamic Capabilities and Competitive Advantage of Deposit Taking Savings and Credit Cooperative Societies in Nairobi City County, Kenya
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Date
2024-05
Authors
Ntoiti, Purity Nkui
Njuguna, Videlis Njeri
Journal Title
Journal ISSN
Volume Title
Publisher
IJSSHR
Abstract
Despite providing financial support and access to over 48% of the adult population and 82%
of small enterprises in Kenya, Deposit Taking Savings and Credit Cooperatives faced intense
competition from other financial institutions, leading to reduced competitiveness. The general
objective of the study was to investigate the effect of dynamic capabilities on the competitive
advantage of Deposit Taking Savings and Credit Cooperatives in Nairobi City County,
Kenya. The specific objectives were to explore the effect of marketing capability, knowledge
management capability, technological innovation capability, financial management capability
on the competitive advantage of Deposit Taking Savings and Credit Cooperatives in Nairobi
City County, Kenya. The study was grounded in Marketing Mix Theory, Knowledge-Based
Theory, Technology Acceptance Theory, Resource-Based Theory, Dynamic Capabilities
Theory, and Competitive Advantage Theory. It employed a descriptive research design, with
a target population of 47 Deposit Taking Savings and Credit Cooperatives operating in
Nairobi City County. The units of observation included 384 top and middle-level
management staff in key departments. The study used a stratefied random sampling for
sampling, involving all 47 Deposit Taking Savings and Credit Cooperatives in Nairobi.
Additionally, a sample of 196 top and middle management staff was selected using the
Yamane Formula. A structured survey tool was utilized for gathering data. Secondary data
on competitive advantage was sourced from published articles, referred journals, and other
relevant materials. The data gathered included both quantitative and qualitative elements,
analyzed descriptively and inferentially, with averages, frequencies, and percentages serving
as useful metrics. Qualitative data was analyzed using content analysis and presented in
narrative form. The relationships between variables were examined through regression
analysis, with tables used to summarize responses. The study analyzed the response rate to
understand the participation and engagement level of 196 respondents in a sample of Deposit
Taking SACCOs, consisting of 55 senior managers and 141 middle-level managers. The
overall response rate was 94.4%, with senior managers returning 90.9% of questionnaires
and middle-level managers returning 95.7%. The regression analysis showed that marketing
capability, knowledge management capability, technological innovation capability, and
financial management capability had a significant positive impact on the competitive
advantage of Deposit Taking SACCOs in Nairobi City County. These capabilities contributed
to competitive advantage through various factors, such as market expansion, communication
efficiency, and financial stability. Recommendations for SACCOs included developing strong
marketing strategies, implementing knowledge management systems, investing in robust
technology, and enhancing financial management practices. Suggestions for future studies
encouraged further exploration of dynamic capabilities and competitive advantages in
SACCOs, as well as other financial institutions in Kenya.
Description
Article
Keywords
academic performance, learners with learning disability, parental involvement, parent-teacher collaboration
Citation
Ntoiti, P. N., & Njuguna, V. N. Dynamic Capabilities and Competitive Advantage of Deposit Taking Savings and Credit Cooperative Societies in Nairobi City County, Kenya.