ROLE OF INSTITUTIONAL FACTORS ON THE GROWTH OF SACCOS IN NAIROBI COUNTY, KENYA

Abraham Olando Maloba, Dr. Jared Deya

Abstract


Cooperatives have long been renowned to play relevant social roles and economic roles in societies in turn translating into the enhancement of standards of living of their members. Companies are owned by the members who encourage credit access since they pull their resources together in form of savings, and the SACCOs then use these savings to give out small credit facilities to them. In Kenya, the Sacco industry has experienced massive growth over the years. The current research established the role of institutional factors on SACCOs growth in the County of Nairobi using resources, policies, culture and structure as the independent variables. Agency theory, resource based view as well as the Institutional theory was used. A descriptive research design was used to gather information using a questionnaire from the management of the 40 firms and analyzed using SPSS version 20.0 program. Analysis of data was done using both inferential and descriptive statistics as well as diagnostic tests and presented using charts, graphs and tables. Furthermore, the data was interpreted and a conclusion and recommendations drawn from the findings of this study. The findings showed that there was an association that was positive at p<0.05 between the resources, culture, policies and structure of the corporations on the Nairobi County’s SACCOs growth and the SACCOs’ growth. The recommendations of this study indicate that there is a necessity for management of the firms to come up and implement policies that will aid in improving and efficiently aiding in the SACCOs growth. In addition, the managers of the SACCOs should involve all employees on all levels in the making of decisions. Furthermore, management training is crucial as it helps the management to understand the corporation’s policies and culture thus improving the service delivery to the shareholders. The structures of the firms should be empowering to ensure that the employees participate in the affairs of the SACCOs as a clearly structured structure of the company helps in conflict resolution and maintenance of order.

Keywords: Organizational Resources, Organizational Culture, Organizational Policies, Organizational Structure, Growth


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References


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