Strategic Alignment And Performance of Savings and Credit Co-Operative Societies in Nairobi City County, Kenya
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Date
2023-11
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Publisher
Kenyatta University
Abstract
By taking into account and evaluating the organizations’ internal and external factors
that operate, strategic alignment entails the matching of organization day to day
process and activities to the strategic goals. The SACCOs in Kenya have anchored
their operations on strategic alignment to remain competitive. SACCOs in Kenya are
confronted with a number of challenges hence have been compelled to adopt variety
of strategic management techniques. This study investigated how strategic alignment
affected SACCO performance in Nairobi, Kenya. It specifically determined the
impact of operations alignment, customer support, technical alignment, and financial
resource alignment on the performance of SACCO. The anchoring theory was
strategic alignment model. The resource-based view, contingency theory and firm
growth theory were also used to inform the study. There were 184 SACCOs operating
in Nairobi City and which included formed the population of the study. Each of the
184 SACCOs' director of strategic management served as the observational unit.
Consequently, 184 SACCO strategic management directors were the study's target
group. The sample size of 126 SACCOs was calculated using Yamane formula. To
choose the 126 SACCOs, simple random sampling shall be utilized. Data was
collected using closed ended questionnaire. The construct validity of the questionnaire
was evaluated using the supervisor's and experts' opinions, and questionnaire
reliability was examined by adopting the Cronbach's Alpha technique and variable
with Cronbach alpha of over 0.7 were considered. The analyses of data entailed
descriptive statistics which included means and standard deviation while inferential
tests included using multiple regression model that determined relationship of
variables under investigation. Charts, graphs, and tables were used to display gathered
data. Descriptive finding of the study established that operational alignment is crucial
in enhancing performance through running day to day activities, confronting
challenges, aligning operations, defining culture, aligning operations to long term and
having actionable plans. Customer support is critical in realizing desired SACCO
performance by creating client-centered, creating a conducive environment,
establishing a service desk that address issues, bringing quality services, building
good image and exploring feedback mechanism. It also showed technology alignment
has been revolutionary in conducting activities of the SACCO. Financial alignment
has been at center of all operations of SACCO thus crucial in its performance. The
coefficient inferential finding revealed that there exist a positive and significant
association among operational alignment, technology alignment, customer support
and financial resources alignment on performance of SACCOs in Nairobi County. On
regression finding, it revealed that the coefficient of operational alignment (β=.400)
had the highest positive effect on the Performance of SACCOs in Nairobi County,
with customer support (β=.244) coming second, Financial Resources (β=.216) and
Technological alignment (β=.208) in that order and all were statically significant at
5% significance level. The study recommends development of a robust strategy that
address any emerging challenges within the organization effectively and efficiently.
Management establishes a customer care desk in every opening of the organization
equipped with all products and resources to address issues adequately. Adoption of
proper budgeting framework before an organization incur expenditure. Upgradation of
technology periodically to avoid using obsolete technology that might compromise
integrity of systems and lower investor confidence. Additionally, strengthening of
accountability measures to enhance prudent utilization of resources
Description
A Research Project Submitted to the School Of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management) of Kenyatta University, November, 2023
Supervisor:
Patricia Kungu