Strategic Implementation and Performance of Deposit Taking Savings and Credit Cooperative Societies in Nairobi City County, Kenya
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Date
2024-06
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Kenyatta University
Abstract
The ever-changing operating environment and dwindling performance have forced organizations to craft superior strategies to help them remain successful. The implementation of strategy is not an easy task and some of the key drivers of strategy implementation and performance are organization structure, strategic communication, strategic direction and strategic competence. There exist discrepancies in the findings of previous studies with regard to influence of strategy implementation on performance of financial sector organizations. The current study sought to establish the influence of strategic implementation on performance of Deposit Taking SACCOs in Nairobi City County, Kenya. The specific objectives were to determine the influence of strategic competence, strategic direction, organization structure and strategic communication on performance of Deposit Taking SACCOs in Nairobi City County. This study was grounded on Resource Based View (RBV) theory, Game theory, General systems theory, and Contingency Theory. This study employs a descriptive research design. The target population included the management working in the head offices of the 42 Deposit Taking SACCOs in Nairobi City County. There were 272 management (top, and middle) staffs working in the head offices of these SACCOs in Nairobi. This research used both convenient and stratified random sampling. The sample size was 81 respondents. Primary data was collected using semi -structured questionnaire. Pilot study was conducted using eight (8) respondents drawn from SACCOs in Machakos County. Internal consistency method was tested using Cronbach’s Alpha test while validity was ensured by seeking lecturer’s opinions on the face validity of the research instrument. Descriptive analysis included descriptive statistics like frequencies, percentages, means and standard deviations. A multiple linear regression model was used to measure the relationship between the independent variables and the dependent variable. The study established that there was a positive and significant relationship between strategic competence, strategic direction, organizational structure and strategic communication and the performance of Deposit Taking SACCOs in Nairobi City County, Kenya. The study concludes that SACCOs with strong strategic competence are able to make informed decisions that are aligned with their overall goals and objectives. A well-defined strategic orientation can help Deposit-Taking SACCOs in Nairobi City County to effectively navigate the competitive financial services market, attract and retain members, and achieve sustainable growth. The way in which a SACCO is structured can have a significant impact on its ability to effectively manage its operations, attract and retain members, and ultimately achieve its financial goals. Effective communication strategies enable SACCOs to build strong relationships with their members, attract new customers, and enhance their overall performance. The study recommends that Deposit Taking SACCOs should tailor their products and services to better meet the demands of their members. The SACCOs should conduct a comprehensive market analysis in which they operate, including identifying key competitors, understanding customer needs and preferences, and identifying potential growth opportunities. The SACCOs should strengthen their governance and leadership by ensuring that the SACCO has a strong and effective board of directors and management team in place. One approach is to actively engage with stakeholders, including SACCO members, regulators, government officials, and the general public and also to enhance the reporting and disclosure practices of Deposit Taking SACCOs.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment for the Award of the Degree of Masters of Business Administration (Strategic Management Option) of Kenyatta University, June 2024.
Supervisor
Elishiba M. Murigi