Performance of Regulated Microfinance Banks in Kenya; Does Market Intelligence Matter?

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Date
2022
Authors
Ouma, Paul
Kinyua, Godfrey
Muchemi, Anne
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Economics, Commerce and Management
Abstract
The concept of performance is pertinent to organizations as it gauges how well organization utilizes its resources to make economic rent over given period of time. Regulated microfinance banks have been performing poorly as illustrated by huge losses declared by microfinance banks in their full year financial statements. Competitive corporate environment is incessantly operating to reduce rate of return on investment. To mitigate these competitive forces, organizations have resolved to collect data at their disposal and transform it into market intelligence through assessment and judgment. Thus, the current research sought to investigate effect of market intelligence strategy on performance of regulated microfinance banks in Kenya. The study was conducted among regulated microfinance banks in Kenya. The study was anchored on Porter’s five forces model and balanced scorecard model. The study adopted positivism paradigm. The study embraced descriptive and explanatory research designs. The target population for the study was all the 13 regulated microfinance banks in Kenya as at the year 2019 out of which 344 employees out of 2,431 were selected using Yamane (1967) formula and then proportionate random sampling technique was used to determine sample size for each microfinance banks. Data analysis was carried out using descriptive statistics; mean and standard deviation and inferential statistics (correlation and regression analysis). The study found that market intelligence strategy plays a significant positive effect on the performance of regulated microfinance banks in Kenya. The study contributes to the body of knowledge by proposing a market intelligence model for improving performance. The study recommends further research be extended to other sectors.
Description
research article
Keywords
Regulated Microfinance Banks, Market Intelligence Strategy, Performance of Microfinance Banks
Citation