Social Capital Resource Attributes Affecting Performance in Deposit-taking Savings and Credit Co-operatives in Kenya
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Date
2023
Authors
Kabue, Lydiah Wanjiru
Kilika, James M.
Waithaka, Paul M.
Journal Title
Journal ISSN
Volume Title
Publisher
AIR
Abstract
The paper reports the findings of research on the role of social capital resource attributes on the performance of
deposit-taking savings and credit co-operative societies in a developing country context. The research was
premised on the logic of the resource-based view that postulates that resources are the basis of performance
variances across firms in the same industry. In addition, the study constructs are supported by the institutional
theory and the social capital theory. Three attributes of social capital resources, specifically networking, reputation,
and culture, were used to operationalize the construct. Data was obtained from representatives of functional areas
involved in strategic decision-making in 38 deposit-taking SACCOs in Nairobi, Kenya. Data was collected using
a 5-point Likert scale questionnaire whose computed Cronbach's alpha score showed that the instrument was
reliable and internally consistent at above α=0.9. The study recorded a response rate of 71%. The study found that
the three attributes of social capital are embedded in the deposit-taking SACCOs to a high extent and contribute
towards improved performance of the deposit-taking SACCOs by explaining 51.3% of the variation of
performance. The findings contribute towards explaining the strategic management process through which the
components of social capital contribute towards the performance of the sampled organizations and raise several
implications on relevant strategic management practices suitable to create and sustain social capital resources for
enhanced organizational performance.
Description
Article
Keywords
Performance, Social Capital, Networking, Reputation, Culture, Deposit-taking Savings and Credit Cooperatives, Heterogeneous Resources, Firm Specific, VRIN
Citation
Kabue, L. W., Kilika, J. M., & Waithaka, P. M. (2023). Social Capital Resource Attributes Affecting Performance in Deposit-taking Savings and Credit Co-operatives in Kenya.