Influence of Technology on the Performance of Microfinance Institutions in Kitui County

Abstract

The purpose of the study was to investigate the influence of technology in strategic planning on the performance of microfinance institutions in Kitui County. The study applied a correctional research design. The population for the study was 175 middle-level managers working for seven (7) microfinance institutions in Kitui County. Through stratified sampling techniques, the study obtained a sample of 122 participants for the study. The study applied questionnaires with five-point Likert questions to collect data through physical administration and electronic ways. The study also collected secondary data from the microfinance institutions, financial statements, magazines, and published and audited accounts of the company. Data gathered was analyzed by descriptive analysis using mean and standard deviation, whereas the inferential analysis was conducted by regression analysis. The study found a β of 0.610 which was associated with a t-value of 5.960 and a p-value of 0.001 between technology and performance of microfinance institutions in Kitui county. The study concluded that technology had a positive and significant influence on the performance of microfinance institutions in Kitui County. The study recommends continued investment in information security by regularly updating security protocols and staying ahead of the evolving threats to protect sensitive information. The study also recommends for organizations to leverage decision support systems in decision-making. The microfinance institutions in Kitui County should train and provide resources to their staff to maximize the benefits of these systems.