Influence Of Strategy And Technology On Performance Of Deposit Taking Savings And Credit Societies In Kenya
Abstract
The business environment today is very dynamic and uncertain due to globalization, the
ever changing customer needs, and the accelerating pace of technology among other
market forces. Businesses are therefore compelled to keep changing and evaluating
their strategies and acquire appropriate technologies to be able to survive and achieve
superior performance. Nearly all Deposit Taking SACCOs (DTSs) in Kenya have
adopted various strategies and technologies to drive up their performance. However,
despite this, there are disparities in the financial performance of the DTSs that can be
observed. This scenario raises questions on whether the strategies and Technologies
adopted by the DTSs are actually enhancing their superior performance within the
sector. The objective of this study was to establish to determine the role of Strategy and
Technology in the DTSs and to establish the relationship between Strategy, Technology
and Performance of DTSs in Kenya. The study adopted a descriptive cross-sectional
survey research design. The study population comprised of 60 DTSs in Kenya. A
structured, self-administered questionnaire was utilized to collect primary data from 60
Branch Managers of study population of 60 DTSs surveyed. The data collected from
the study respondents was analyzed with the aid of Statistical Package for Social
Scientists (SPSS) Version 20. Descriptive statistics was used to summarize the data and
establish the distribution of the response variations on Strategy and Technology.The
study established the DTSs were good at creating and maintaining relationships with
their members and continuously gathered and evaluated feedback to improve on their
products and but were relatively low in relation to consistently introducing new
products and services faster than main competitors. The study also established that the
DTSs continuously and in a timely manner responded to changes in technology in the
business environment by adopting contemporary technology at the highest level but on
the lower end, the DTSs leveraged on technology with an expectation to increase
market share and ultimately improve financial performance. Further, the study
established that strategy andDTSs performance were significantly and positively
correlated and that technology is a positive correlate of DTSs performance. Overall,
strategy and technologypositively affectDTSs performance.The study concludes that
market penetration, market development, product development and diversification
strategies adopted by DTSs in Kenya as well as technology deployment are positive
correlates of DTS performance. The study recommends that the management of DTSs
should focus on growth strategies that have the greatest potential to positively influence
their key performance indicators through an integrated approach. The managers of
DTSs should also recognize that the relevance of technology in driving their
organization's performance and strive to identify the salient features of technology that
have the biggest influence on the key performance indicators and strategically invest in
these aspects to obtain maximum performance.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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