Influence of Strategic Organizational Resources on Performance of Deposit taking Saccos in Kiambu County, Kenya.

Abstract

Savings and Credit Cooperatives have always struggled to keep pace with the rapid changing technological advancement and stiff competition from larger financial institutions like commercial banks. The way in which deposit taking, savings and Credit Cooperatives (SACCOs) and financial institutions utilize strategic resources defines their competitive advantage and consequently their performance. This study sought to investigate the influence of Strategic organisational resources on performance of deposit taking SACCOs in Kiambu County. Specifically, the study sought to establish the influence of human capital, financial resources, intellectual property, and physical resources on performance of deposit taking SACCOs in Kiambu County. The study was hinged on resource-based view theory, organisational learning theory and balanced scorecard theory. Descriptive survey research design was adopted. The target population for this study was 227 management staff comprising of 26 top level, 67 middle level, and 134 lower-level management staff in Kiambu County. Stratified sampling technique was used to select a sample of 14 top level, 36 middle level, and 71 lower-level management staff in Kiambu County. Primary data was utilised in the study collected through a semi-structured questionnaire. Drop and pick method was adopted in administering the questionnaire. Face and content validity of the research instrument was tested by subjecting it to expert opinion, while reliability was tested using Cronbach’s alpha (α) coefficient. A coefficient of 0.7 or above was considered adequate in the study. Collected data was analysed using descriptive and inferential analysis. Ordinary least squares regression model was used in this study. R 2 was used to measure the predictive power of the model, while F-statistic was used to determine the fitness of the model. The significance of the study variables in influencing performance of SACCOs was based on the P-values of each variable at 0.05 significance level. Results of the study indicated that strategic intellectual resources were emphasised to a greater extent while strategic human resources, strategic financial resources, and strategic physical resources were deployed to a moderate extent. Results also showed that a positive correlation existed between performance and each independent variable. Further, strategic human resources, strategic financial resources, strategic intellectual resources, and strategic physical resources were statistically significant in predicting performance of DTS in Kiambu County. The study thus concluded that strategic resources had a significant influence on performance of DTS in Kiambu County. Based on these conclusions the study recommends that the management of DTS should emphasise on acquiring and optimally configure strategic resources in a manner that enables them to efficiently utilise them to maximise performance