Organizational Resources and Performance of Deposit-Taking Savings and Credit Cooperative Societies in Kirinyaga County, Kenya
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Date
2025-09
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Kenyatta University
Abstract
Deposit-accepting SACCOs in Kirinyaga County continue to face notable operational challenges, including low profitability and turnover growth, high retrenchment rates, slow technological adoption, and low returns on shareholders’ equity. These constraints limit their financial stability and overall efficiency. This study examined how organizational resources specifically human capital, financial assets, and technological infrastructure affect SACCO performance. The study was guided by the resource-based theory, the slack resources theory, and the balanced scorecard (BSC) model. The study sought to determine organizational resources on SACCO performance. A descriptive mixed-methods research design was employed, integrating both qualitative and quantitative approaches. A pilot study was conducted to test the reliability and validity of the research instrument before the main data collection exercise. The target population consisted of all deposit-taking SACCOs in Kirinyaga County. The unit of analysis was the SACCO institution, while the unit of observation comprised SACCO managers and employees. Data were collected through semi-structured questionnaires, complemented by secondary data from financial reports. A stratified random sampling design was used to ensure proportional representation across SACCO managerial and staff categories, resulting in a sample of ten SACCOs for detailed analysis. Statistical methods were applied to examine the relationship between organizational resources and SACCO performance. The findings indicate that human capital, particularly well-trained and skilled staff is the most significant determinant of improved SACCO performance. Although financial resources and technological infrastructure also positively influence operational efficiency, their effects were comparatively moderate. Resource sufficiency demonstrated a strong association with improved financial stability and service delivery. The study concludes that strategic investment in human capital, modernization of technological infrastructure, and prudent financial resource management is critical to strengthening SACCO performance. It recommends prioritizing continuous staff training and development, enhancing technological systems to streamline operations, and adopting sound financial management practices to maintain competitiveness. These insights offer a practical roadmap for SACCOs seeking to enhance efficiency, sustain growth, and reinforce their contribution to economic development
Description
A Project Submitted to the School of Business, Economics, and Tourism in Partial Fulfillment of the Requirements for the Award of a Master of Business Administration Degree (Strategic Management Option) of Kenyatta University, September 2025
Supervisor:
1.Paul Waithaka