Differentiation and Benchmarking as Competitive Strategies: An Analysis of Organisational Performance of Savings and Credit Cooperative Societies in Kenya
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Date
2025-09
Journal Title
Journal ISSN
Volume Title
Publisher
INTERNATIONAL JOURNAL OF BUSINESS AND MANAGEMENT (IJBM)
Abstract
Savings and Credit Cooperative Societies (SACCOs) are essential in reducing poverty, wealth
creation, and development. However, they have been faced with declining organizational
performance characterized by low market share, inability to satisfy customers and low employee
productivity. In the current study, the aim was to establish the effect of differentiation and
benchmarking strategies on organizational performance of SACCOs in Nairobi City county,
Kenya. The study was anchored on balanced scorecard model, diffusion of innovation theory,
Porter's and general theory of competitive strategies. The target population was forty-nine
SACCOs in Nairobi City County, Kenya that were registered with Sacco Societies Regulatory
Authority. The target respondents were one operations manager, one finance manager, one
administration manager, and one human resource manager from each of the 49 Savings and credit
cooperative Societies. A census was used, and primary data was collected using an open and closed
ended questionnaire. The validity of research instrument was determined by experts and pilot
study. Alpha Cronbach method was used to ascertain the reliability of research instrument and
threshold was 0.7. Data was analysed utilizing descriptive and inferential statistics especially
mean, standard deviation and multiple regression with the aid of statistical package for social
sciences. Tables were utilized to present the data. The researchers upheld research ethics. The
results revealed that differentiation strategy had a negative and insignificant effect contrary to
much established theory on organizational performance, while benchmarking strategy had a
positive and significant effect. The study recommends that management of SACCOs should
improve operational efficiency and competitiveness in the market. The study is meant to benefit
policy makers, management of Savings and Credit Cooperative Societies, Sacco Society
Regulatory Authority, government, academicians and researchers. The findings are additional
literature to existing body of knowledge
Description
Research Article
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Citation
Njangiru, H. W., & Sitienei, C. S. K. (2025). Differentiation and benchmarking as competitive strategies: An analysis of organisational performance of savings and credit cooperative societies in Kenya. International Journal of Business Management (IJBM). https://doi.org/10.56879/ijbm.v4i2.164