EFFECT OF FINANCING STRATEGY ON ORGANIZATIONAL PERFORMANCE OF DEPOSIT TAKING SACCOS IN KENYA
Abstract
The study investigates the impact of financing strategies on the organizational performance of deposit taking Saccos in Kenya. Using resource-based view and diffusion of innovation theories, the research analyzed 176 deposits taking SACCOs in Kenya, with operations managers as the unit of inquiry. The sample size was determined using the Yamane formula, and the study aimed to protect member deposits and improve overall performance. The study utilized a structured questionnaire to collect primary data, ensuring content and construct validity. Statistical methods were employed for descriptive and inferential analysis, including mean, percentage, standard deviation, and frequency. Visual representations of the data were provided through tables, charts, figures, and models. The strategies account for 66.4% significant variance in organizational performance of DTSs (R square =.664, P=0.000) implying that 33.6% of the variance in organizational performance of DTSs is accounted for by other variables not captured in this model. The study recommended that implementing robust monitoring and evaluation frameworks is crucial for assessing the effectiveness of strategies. Sacco managers should establish key performance indicators aligned with strategic objectives and regularly evaluate the impact of implemented strategies. This iterative process allows for adjustments and refinements based on real-time feedback and evolving market conditions. Further studies should focus on other combination strategies such as growth and expansion strategies.
Key Terms: Innovation Strategy, Financing Strategy, Automated Teller Machine, Deposit Taking SACCOs, Point of Sales, Return on Assets, Return on Investment, Savings and Credit Co-Operative Societies
CITATION: Mjambili, M. F., & Injeni, G. (2024). Effect of financing strategy on organizational performance of deposit taking SACCOs in Kenya. The Strategic Journal of Business & Change Management, 11 (3), 529 – 543. http://dx.doi.org/10.61426/sjbcm.v11i3.3042
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i3.3042
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