STRATEGIC FORMULATION AND PERFORMANCE OF DEPOSIT TAKING SAVINGS AND CREDIT CO-OPERATIVE SOCIETY IN NAIROBI CITY COUNTY, KENYA
Wycliffe Odhiambo Ogweno - Master of Business Administration Graduate, Kenyatta University, Kenya
Hannah O. Bula (PhD) - Lecturer, Department of Business Administration, Kenyatta University, Kenya
ABSTRACT
The past twelve years has seen a significant development of the financial intermediary services especially with the establishment of the regulatory body for the SACCOS in Kenya, SASRA. The managers of these SACCOs, must therefore, invest time and skill in ensuring the strategic management processes employed in running the institutions meet the member’s current and future demands on returns and security of resources and also ensure the institutions survive the stiff competition from the mainstream and financially established banks. The overall objective of this research was to determine the effect of strategic management processes on performance of deposit taking Saving and Credit Cooperative Organizations in Nairobi City County. More specifically, the study sought to determine the effect of strategy formulation, strategy implementation and strategy evaluation on performance of Deposit Taking Saving and Credit Cooperative Organizations in Nairobi City County. The study was anchored on three theories, that is, Resource Based Theory, Modern Portfolio Theory and Balanced Scorecard Theory. The study used a descriptive and explanatory Research design. The study targeted 210 managers from 42 saving and Credit Cooperative Organizations in Nairobi. Stratified random sampling was adopted in selecting 137 respondents. Primary data was gathered with aid of a questionnaire that had undergone pilot testing to determine its reliability while validity was ensured by the review of the supervisor. The gathered data was analyzed through means and standard deviations and regression analysis and presented through tables and figures. The study established that strategy (β=.157, p<0.05), strategy implementation (β=.060, p<0.05) and strategy evaluation (β=.257, p<0.05) all have positive and significant beta. The study concludes that strategy evaluation exerted the greatest significant effect on performance of the SACCOs in question followed by strategy formulation and lastly strategy implementation. The study recommends that the senior managers working in deposit taking SACCOs in Nairobi should leverage the missions, objectives and policies to formulate good strategies. The finance managers working in deposit taking SACCOs in Nairobi should avail adequate resources towards strategy management process. The managers working in deposit taking SACCOs in Nairobi should adopt relevant structures aimed at maximizing the market share.