The relationship between benchmarking and financial performance of Sacco’s in Nairobi
Abstract
Given that the inherent advantages of SACCOs in terms of flexibility and proximity to
their markets are no longer sufficient to ensure their competitiveness in the new global
economy, the adoption of new business practices by these organizations must be
facilitated, practices whose identification will be made through a benchmarking exercise.
Benchmarking activities developed for SACCOs must be specific to the environment and
constraints of these organizations if the implementation of the practices identified by such
activities is to succeed and result in increased performance. Distinct strategic objectives,
greater environmental uncertainty and limited resources are some of the aspects that
would require the development of benchmarking practices that are specific to SACCOs if
these practices are to be adopted effectively. Most of the literature views benchmarking
as a vector of performance, as this practice answers the firm's need to improve its quality,
profitability and competitiveness brought about by rapid and important changes in the
business environment. In Nairobi North, benchmarking has been taking place in SACCOs
although no empirical study has been carried out to establish the extend and its impact.
The main purpose of this study is to investigate the relationship between
benchmarking and financial performance of SACCOs. This study adopted a causal
research design in order to meet its objective. The population of interest of this study was
selected using random sampling method to come up with a sample size of thirty five (35)
SACCOs. The study used both primary and secondary data. The primary data was
collected through the use of a structured questionnaire which was dropped and picked
later at the selected employees` desks. The study adopted the use of descriptive and
inferential statistics in the analysis of the data.
Citation
MBA ThesisSponsorhip
University of NairobiPublisher
School of Business, University of Nairobi