Strategic Implementation and Organizational Performance of Deposit Taking Savings and Credit Cooperative Societies in Nairobi City County, Kenya

Abstract

This study sought to establish the influence of strategic implementation on organizational performance of Deposit Taking SACCOs in Nairobi City County, Kenya. The specific objectives of the study were to determine the influence of strategic competence, strategic direction, organization structure and strategic communication on organizational performance of Deposit Taking SACCOs in Nairobi City County. The study was grounded on several theories including Resource Based View theory, Game theory, General systems theory, and Contingency Theory. The study employed a descriptive research design. The target population was the 42 Deposit Taking SACCOs in Nairobi City County. There were 272 management (top, and middle) staffs working in the head offices of the DT-SACCOs. This research used both convenient and stratified random sampling. From the population of 272, a sample of 30% was selected. This generated a sample of 81 respondents. This study mainly relied on primary data collected using a semi-structured questionnaire. The pilot study was conducted using eight (8) respondents drawn from SACCOs in Machakos County. Machakos County was selected due to its convenience and suitability to portray the characteristics of the target population. Internal consistency method was tested using Cronbach’s Alpha test while validity was ensured by seeking lecturer’s opinions on the face validity of the research instrument. The researcher administered the survey questionnaires to the staff in DT- SACCOs in Nairobi City County. The data gathered was entered, cleaned, and analyzed using SPSS (Version 25). Descriptive analysis included frequencies, percentages, means and standard deviations. Multiple linear regression model was used to measure the relationship between the study variables. Tables were used to summarize responses for further analysis and facilitate comparison. The study found that strategic competence affects the performance of DT- SACCOs to a moderate extent. Technical knowledge, roles and task involvement, technological knowledge and job training influences the performance of DT SACCOs to great extents. The study found that strategic direction influences the performance of DT- SACCOs to a great extent. Mission, vision, planning and execution and that goals and objectives play great roles on the performance of the DT-SACCOs. From the study, organizational structure influences the performance of DT-SACCOs to a great extent. Task allocation and coordination, chain of command, teamwork and strategic communication were found to affect the performance of DT SACCOs to great extents. The study found that strategic communication influences the performance of DT-SACCOs to a moderate extent. The study concludes that strategic competences, strategic direction, organizational structures and strategic communication have great influence on the performance of DT-SACCOs.