Corporate Growth Strategies and Performance of Selected Savings and Credit Cooperative Societies in Nairobi City County, Kenya
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Date
2020
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International Journal of Business Management, Entrepreneurship and Innovation
Abstract
The dynamic nature of business operating environment has called on business leaders to be
strategic in their leadership roles if they are to sustain their competitiveness into the unforeseen
future. Growth is important in Sacco’s because it is future oriented establishing ways in which
the organizational operations can be aligned to future changes in the business environment to
ensure that competitiveness is sustained. The SACCOs in Kenya have experienced problems in
the past; some even shutting down therefore there is need for customer growth to be enhanced so
as to increase their incomes so as to sustain the business. These SACCOs have to look for
leaders and managers who can develop future targets, direct and lead other staffs towards
meeting the firm’s objective and gaining a competitive edge. The aim of this study was an
assessment of corporate growth strategies and performance in savings and cooperative societies
in Kenya, Nairobi County. The study sought to determine the influence of market expansion,
diversification strategies and acquisition strategies. The study target population was 41 licensed
SACCOs in Nairobi County. The study used primary data to collect information, and the data
collection instrument was a questionnaire which was given to the 41 operations managers in the
41 selected SACCOs. The data collection procedure was done by the researcher and drop-andpick strategy will be applied. The data was coded and keyed in Statistical Package for Social
Science (SPSS Version 23.0), and was analyzed using both descriptive and inferential statistics.
For descriptive statistics was through mean scores, standard deviations, frequencies and
percentages, while the inferential statistics was through regression analysis to establish the
relationship between strategic leadership and customer growth. The findings were presented in
tables and charts for easy understanding, interpreting, and describing the data. The study
established that market expansion, diversification strategies and acquisition strategies as
corporate growth strategies had a positive and significant effect on the performance of SACCOs
in Nairobi City County. The study concluded that the SACCOs significantly employed market
expansion strategies through improved branch network, customer base enhancement, new
distribution channels and technological innovation. The study concluded that the SACCOs
embraced a hybrid of the main diversification strategies, diverse products and services
significantly. It was concluded that to a little extent the selected SACCOs in Nairobi City County
have employed acquisition as a corporate growth strategy. The study recommends that the
SACCOs should embrace integrate technology in the implementation of corporate growth
strategies to enhance efficiency and effectiveness. Further studies should be undertaken to
establish the effect of corporate growth strategies on the performance of other SACCOs in other
regions to establish the disparities or similarities among the financial sector players.
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Citation
Mwilu, H., & Njuguna, R. (2020). Corporate Growth Strategies and Performance of Selected Savings and Credit Cooperative Societies in Nairobi City County, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 2(2), 19-30. https://doi.org/10.35942/jbmed.v2i2.112