Knowledge management and organizational performance of deposit-taking savings and credit cooperatives in Laikipia County, Kenya
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Date
2024-05
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Kenyatta University
Abstract
Financial institutions that provide affordable financial products to its members are Savings and Credit Cooperatives Societies, therefore leading to growth of the nation’s GDP and other areas of economy and in the attainment of Vision 2030. However, they have been struggling in performance challenges as evidenced by declining institutional capital, non-performing loans, growth rate for total deposits, growth rate of net loans and advances. Therefore this study, intends to establish how Knowledge Management practices affects Organizational Performance of deposit taking savings and credit cooperatives in Laikipia County, Kenya. The study is supported by four theories which are Organizational learning theory, Knowledgebased theory of the firm, Balance Scorecard theory and Resource Based Theory. The research designs adopted were explanatory and descriptive, with the target population which comprised of 135 respondents which were drawn from 45 deposit taking savings and cooperatives societies in Laikipia County. Owing to the relatively small target population, the study used census survey design with 3 top-level management employees from drawn from each institution forming the unit of study observation. The study entailed gathering of survey primary data by use semi-structured questionnaire. Prior to the process of survey data collection, the researcher conducted a pilot with a view to assess both questionnaire validity and reliability. Reliability was tested by Cronbach alpha. The researcher applied Cronbach’s alpha of 0.7 as a benchmark. Two types of validity were tested in this regard, including face and content inferential and descriptive calculations were then analyzed and computed in data analysis. Findings reveal a statistically significant relationship between knowledge creation (β = 0.0101, p=0.027), knowledge sharing (β =0.058, p=0.043) and knowledge application (β =0.952, p=0.01) and performance; while knowledge storage (β=0.082, p=0.053) was found not to be significantly related with performance among DT-SACCO in Laikipia County, Kenya. . It is thus concluded that creation, sharing and application of knowledge significantly influence performance deposit taking cooperatives in Laikipia County, Kenya, while knowledge storage does not. The study recommends that in order to achieve desirable performance deposit taking cooperatives in the country ought to invest in knowledge creation, knowledge sharing and knowledge Application. The implementation of recommendations advanced in the study will result in performance improvements among deposit taking
cooperatives in the country as a result of effective management of knowledge. Managements of deposit taking cooperatives, Kenya will particularly benefit from this research by identifying the knowledge management practices that they may utilize to improve their performance.
Description
A project submitted to the school of business, economics, and tourism in partial fulfillment of the requirements for the award of masters of business administration degree (strategic management), Kenyatta university, May 2024
Supervised by Anne Muchemi