Positioning Strategies and the Performance of Deposit Taking Savings and Credit Cooperative Organizations in Nyeri County, Kenya

Jessica Nyabenge, Dr. Samson Nyang'au

Abstract


Deposit-Taking Savings and Credit Cooperative Organizations (DT- SACCOs) play a crucial role in Kenya’s economic development, particularly in promoting financial inclusion and empowerment at the grassroots level. However, Deposit-Taking Savings and Credit Cooperative Societies (DT-SACCOs) in Nyeri County, Kenya, face several challenges affecting their financial performance. The general objective of this study is to evaluate the relationship between positioning strategies and the performance of deposit taking SACCOs in Nyeri County, Kenya. Specifically, the study sought to examine how strategic alliances affect the performance of deposit taking SACCOs in Nyeri County, Kenya and to assess how product reengineering affects the performance of deposit taking SACCOs in Nyeri County, Kenya. This study was guided by the Competitive Strategy theory and Kotter’s Model. The research design used in this study was a descriptive research design. The study targeted all 3 three levels of management that included top management, middle level management and lower management, targeting 20 respondents from each SACCO, thus bringing a total of 100 respondents. Therefore, a census was carried out for this study. The researcher used primary data and secondary data. For primary data, the study used questionnaires. For secondary data, the study used financial statements of the stated SACCOs. Quantitative data collected was analysed by the use of descriptive statistics using SPSS (Version 25) and presented through percentages, means, standard deviations and frequencies. Inferential statistics in this study comprised correlation analysis and regression analysis. The information was displayed by use of bar charts, graphs and pie charts and in prose form. The study concludes that strategic alliances have a positive and significant effect on the performance of deposit taking SACCOs in Nyeri County, Kenya. The study also concludes that product reengineering has a positive and significant effect on the performance of deposit taking SACCOs in Nyeri County, Kenya. Based on the findings, the study recommends that the management of deposit taking SACCOs in Kenya should establish partnerships with fintech companies and microfinance institutions. These alliances can provide access to advanced financial technologies, data analytics tools, and innovative service delivery channels that SACCOs may not afford independently.

Keywords: Positioning Strategies, Strategic Alliances, Product Reengineering, Performance, Deposit Taking SACCOs


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References


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