Technological innovation promoters, service quality practices and performance of SACCOs in Kenya

Leonard Omondi Otii,Humphrey Omondi,Kenneth Lawrence

doi:10.20525/ijrbs.v9i4.785

Abstract

The programmed co-operative enterprises’ innovation initiatives in Kenya have been below their expectations of customers. The majority (60%) of the customers are satisfied by banking and related financial services offered by co-operative enterprises in Kenya. This is below the expectations of what the customers perceive and what is realized at the point of service delivery. This study sought to provide insights into the relationship between technological innovation promoters and performance by empirically testing the direct effect of technological innovation promoters on performance and exploring the moderation effects of service quality practices. The study is anchored on the promoter theory and collective entrepreneurship concept. The study used a self-administered questionnaire to Chief Executive Officers of 158 Savings and Credit Co-operative Societies (SACCOs). Data were analyzed by employing Statistical Software for Social Sciences (SPSS) Version 22 and structural equation modeling using AMOS version 25. The hypotheses were tested using structural equation modeling and hierarchical moderated multiple regression (MMR). Overall, the study found out that, technological innovation promoters have a positive influence on the performance of SACCOs in Kenya, and service quality practices (R2 change) is 0.153. This implied that the moderating effect of service quality practices gained 15.3% variance in the SACCOs above and beyond the variance by technological innovation promoters and performance. This study concludes that an integrative model comprising of technological innovation promoters, service quality practices and performance is a sure way of enhancing collective entrepreneurship and recommends that SACCO management together with their partners should deliberately nurture a customer relationship management culture that will enable them to realize positive performance that has been influenced by service quality practices

Highlights

The objective of the study was to examine the relationship between technological innovation promoter and performance of Savings and Credit Co-operative Societies (SACCOs) as well as the moderating effect of service quality practices
The results show that the average mean for information gathering had an average mean score of 1.702 and standard deviation of 0.629 meaning that the respondents were in agreement that SACCOs gather information about emerging technological issues they wish to implement in the Cooperative Society
The regression weights of the interaction between service quality and technological innovation promoters (β=0.143, C.R.= 5.525, p=***) had a Critical ratio greater than the 1.96 standard normal Z-score this implied that service quality practices significantly moderate the relationship between performance and technological innovation promoters

Summary

Introduction

The objective of the study was to examine the relationship between technological innovation promoter and performance of SACCOs as well as the moderating effect of service quality practices. Individuals who are holders of knowledge represent a tool for the generation of innovations. Through the individuals’ personal creativity, knowledge, skills and abilities, it is possible to generate new innovative ideas that will help organizations to achieve a competitive advantage over others. The high relevance of innovations for the firm’s economic success is empirically evident, especially the role of active and motivated key person called promoters, is emphasized as a critical success factor to innovation management. It can be assumed that employees take the promoter role spontaneously in a self-organized way. An effective innovation process requires types of key persons known as promoters as has been demonstrated by the literature in innovation (Hauschildt & Kirchmann, 2001; Gemünden, Salomo & Hölzle, 2007)

Objectives

Methods

Findings

Conclusion