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.