Strategic Management Practices And Sustainability Of Micro - Finance Institutions In Kenya.

Abstract

Sustainability of Micro-Finance Institutions can be established by applying various strategic management practices. Nonetheless, being that the business arena is dynamic today, not all strategies are workable. In response, this study sought to establish the influence of strategic management practices on sustainability of Micro-Finance Institutions (MFIs) in Kenya. The study was anchored on the Stakeholder, Resource Based View and Resource Dependency theories respectively. To address the research question, the study employed a descriptive cross sectional research design. The study population were the 54 registered MFIs and census survey employed to collect data from all the 54 MFIs. A structured questionnaire was self-administered through emails and drop-pick method to gather quantitative primary data. Data was then statistically analyzed using both descriptive and inferential statistics by use of Statistical Package for the Social Sciences software. The study findings showed that strategy formulation, strategy evaluation and control, and strategic leadership practices positively and significantly statistically influenced sustainability of Micro-Finance Institutions in Kenya. On contrary strategy implementation practice negatively and significantly influenced sustainability of Micro-Finance Institutions in Kenya. However, the research was limited in terms of conceptual and contextual settings. The study concluded that Micro-Finance Institutions in Kenya should adopt strategic management practices for sustainability and it further suggested that a study be carried out to establish the influence of strategic management practices on the social and environmental aspects of sustainability of Micro-Finance Institutions in Kenya.