GROWTH STRATEGIES ON COMPETITIVENESS OF REGISTERED DEPOSIT TAKING SACCOS IN NAIROBI CITY COUNTY KENYA
GROWTH STRATEGIES ON COMPETITIVENESS OF REGISTERED DEPOSIT TAKING SACCOS IN NAIROBI CITY COUNTY KENYA
Hellen Wanjiku Waithaka - Student, Master Degree in Business Administration (Strategic Management), Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Lawrence Odollo, (PhD) - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Competitiveness has become a paramount concern for business entities in their pursuit of maximizing shareholder wealth. Despite the high growth rate of the SACCO subsector in Kenya, several SACCOs continue to struggle financially, with some even being forced to shut down. Therefore, this study aimed to address the research gap by conducting an in-depth investigation into the impact of growth strategies on the competitiveness of registered deposit-taking SACCOs in Nairobi City County, Kenya. The study specifically sought to: determine the influence of market expansion on competitiveness of registered deposit taking SACCOs in Nairobi City County Kenya, to establish the influence of diversification strategies on competitiveness of registered deposit taking SACCOs in Nairobi City County Kenya, to assess the influence of acquisition strategies on competitiveness of registered deposit taking SACCOs in Nairobi City County Kenya, and to determine the influence of cost leadership strategy on competitiveness of registered deposit taking SACCOs in Nairobi City County Kenya. The study was anchored on Resource Based-View (RBV) Theory, Corporate Branding Theory and Dynamic capabilities Theory. The study used a descriptive, cross-sectional survey research design. All the 41 registered deposit taking SACCOs in Nairobi County with SASRA formed the study population. The unit of observation was top management positions including Chief Executive Officers, Operations manager, Strategy Managers, Finance and Administrations manager and human resource manager. In this research study, because the target population was small, a census survey was used. The study focused on a total of 205 respondents. The study relied on primary data collected using self-administered structured questionnaires. To ascertain reliability, validity a pilot test was conducted by administering the questionnaires on 21 participants. Statistical Packages for Social Sciences (SPSS) version 26.0 was used for analysis and presentation. The data was analyzed using descriptive and inferential statistics. Descriptive statistics included the mean, standard deviation, coefficient of variation and percentages. Pearson Correlation analysis was used to determine the relationship between individual variables in the objectives Multiple Regression analysis was used in testing the research questions by establishing the influence of each independent variable on the dependent variable. The significance of the model was interpreted using a significance level of 0.05. The results were presented on frequency tables, charts, and graphs. The coefficients analysis revealed hat all predictor variables, including Market Expansion (β = 0.774, p = 0.001), Diversification strategies (β = 0.572, p = 0.000), Acquisition strategies (β = 0.595, p = 0.000), and Cost leadership (β = 0.439, p = 0.000), significantly and positively influence the competitiveness of registered deposit-taking Savings and Credit Cooperative Societies (SACCOs) in Nairobi City County, Kenya. The study findings underscore the critical influence of market expansion, diversification strategies, acquisition strategies, and cost leadership on the competitiveness of registered deposit-taking SACCOs in Nairobi City County, Kenya. Based on the findings, the study suggests that SACCOs should prioritize investment in market expansion, diversification strategies, acquisition strategies, and cost leadership initiatives to bolster competitiveness. Additionally, policymakers should consider supportive regulatory measures to incentivize SACCOs' adoption of these strategies, fostering a conducive environment for sustainable growth and financial inclusion.
