Balanced Scorecard Model: Issues to Resolve For Competitive Advantage among Saccos in Kajiado County
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Date
2024-10-18
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International Journal of Research in Business and Social Science
Abstract
This study aims to examine the correlation between the perspectives of the Balanced Scorecard and
the competitiveness of Savings and Credit Cooperatives located in Kajiado County, Kenya. The specific
aims of the study included assessing how the perspectives of the Balanced Scorecard, namely, financial
perspective, customer perspective, internal business processes, and learning and growth perspective,
affect the competitiveness. of Savings and Credit Cooperative Societies within Kajiado County. This
study was anchored on the theoretical frameworks of Balanced Score Card, Resource-Based View and
Dynamic Capabilities theory. The study utilized a cross-sectional survey research design, guided by
objectivism as an ontological approach, a positivist epistemology, and a deductive approach for data
collection and analysis. The study’s target population included the deposit taking Savings and Credit
Cooperative Societies in Kajiado County (N= 22). Purposive sampling was employed to identify 22
Savings and Credit Cooperative Societies and 32 personnel members from the 5 main sub counties.
Data collection involved the utilization of a structured questionnaire self-administered by the
respondents themselves. The relationship between distinct independent variables and company
competitiveness was analyzed using multiple regression. The critical value for regression was 0.05,
and the 95% confidence interval was used. The study found a strong, statistically significant positive
correlation between SACCO competitiveness and customer perspective (r = .899, p = .000). Also, a
strong, positive, and statistically significant correlation was found to exist between financial
perspective and SACCO competitiveness (r = .841, p = .000). A similar strong positive correlation was
observed between internal business processes and SACCO competitiveness (r = .805, p = .001).
Similarly, learning and growth exhibited a strong, positive correlation with SACCO competitiveness
(r = .817, p = .001). Some of the balanced score card perspectives, such as financial and customer
perspectives, positively predict SACCO competitiveness. The relationships are also statistically
significant. However, internal business process and learning and growth, negatively predict SACCO
competitiveness. The relationships are not statistically significant. It was recommended that the
management of SACCOs should enhance the customer perspective and the financial perspective to
boost competitiveness, while strengthening the other perspectives.
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Citation
Kingwalor, K. L., & Muathe, S. M. (2024). Balanced scorecard model: Issues to resolve for competitive advantage among SACCOs in Kajiado County, Kenya. International Journal of Research in Business and Social Science, 13(8), 34-51.