The influence of ICT implementation and use on SACCO innovativeness, innovations and performance

Abstract

Background The success and competitiveness of every SACCO is determined by its responsiveness to its evolving environment. Innovativeness is regarded as one of the significant drivers to SACCO economic growth and success, with the ability to innovate being considered one of the main competitive advantages for firms. Problem There is need for SACCOs to grasp and master the concepts of innovativeness and innovation in their environment. Existing studies have been derived from the first world countries, whose economy, infrastructure, and resources are vastly different from the African setting. Consequently, the resulting insights they provide are in most cases inapplicable to the East African context. Purpose This study aimed to establish how innovativeness takes place in SACCOs and the influence of ICT use on SACCO innovativeness, innovations, and performance. The study focused on Deposit Taking SACCOs in the Nairobi County and provides an explanatory journey into how innovations take place in SACCOs. Methodology The study adopted mixed method sequential explanatory approach; first collecting quantitative data using document analysis and questionnaires in a pre-study phase, and thereafter using a case study as the overarching qualitative data collection approach to complete the research. Findings The study reveals ICT use in SACCO operations significantly increases its capability for innovativeness. Conclusion The study reveals innovativeness process in Deposit Taking SACCOs in Nairobi. Value The study implies that SACCOs need to value the impact of ICT use on the innovation capability of their firms. It underscores the importance of the use of ICTs which significantly increased the capability to be innovative and achieve higher operational and financial performance.