Strategy Implementation Practices and Growth of Daraja Micro Finance Bank in Nairobi City County, Kenya
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Date
2024-04
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Kenyatta University
Abstract
Micro Finance Institutions (MFIs) have continued to play an important role in the economy especially improving the living standards of the poor. However, the ever changing environment has necessitated the Micro finance institutions to adopt strategies in order to make them grow and survive in the ever changing environment. These institutions have ever encountered several challenges in the implementation of the strategies due many other players in the same sector. The general objective of this study was to determine the strategy implementation practices on the growth of Daraja Microfinance Bank. The study’s specific objectives were to establish the influence of top management support, organizational structure, resource allocation and organizational culture on the growth of Daraja Microfinance Bank. The study was guided by scientific management theory, Resource based view theory, McClellands achievement theory and contingency theory. This study adopted a descriptive survey design. The target population for this study was Daraja Micro Finance Bank. The targeted respondents were 59 comprising of 4 managers and 55 employees. A census method was carried out to select the entire population and form a sample size of 59 respondents. The research instruments to be employed in the study were questionnaires for the employees and interviews for the managers. Content analysis technique was used to analyze qualitative data collected using interview schedules and reported in narrative form along with quantitative presentation. Quantitative data was analyzed using descriptive statistics such as mean, standard deviations, frequencies and percentages. The analyzed data was presented in form of tables, pie-charts and bar-graphs where applicable. The study conducted a multiple regression analysis. The study established a positive significance relationship between top management support, organizational structure, resource allocation, organizational culture and organizational growth. On top management support, the study concludes that top management team of the organization controls decision making that affects every member within the organization and ultimately, those decisions affect the success of the organization. On organizational structure, the study concludes that an efficient organizational structure helps the organization in making it easier to delegate responsibility and effect change throughout the organization. On resource allocation, the study concludes that resources are an essential factor that influences the growth of an organization. The resources are considered essential for organizations as it can help to develop the capabilities that are urgently needed to adapt to their external environment and in turn facilitate organizations to enjoy better performance. On organizational culture, the study concludes that the organization culture is the main picture of the organization and defines the type and style of organization structure. On top management support, the study recommends that the top managers should exercise competent delegation of decision-making power to leaders from different levels of the organizational structure, take action aimed at reducing the resistance of employees by involving them in the organization’s undertakings. On organizational structure, the study recommends that the organization should have an organizational structure that supports objectives, clear vision and priorities, cohesive leadership team and clear roles and accountabilities for decisions. On resource allocation, the study recommends that the organization need to secure sufficient resources in terms of capital, labour, materials and equipments to be able to operate efficiently and implement internal growth strategies to promote the performance of the organization. The management of Daraja Microfinance Bank should adopt a culture that is dynamic, flexible and adaptive.
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. April, 2024
Supervisor
Lucy Kavindah