Strategy Implementation Practices and Performance of Deposit Taking Saccos in Nairobi City County, Kenya

Abstract

In modern business environment that are complex and sophisticated, organizations often come up with strategic plans to address the reason for their existence. Strategic ideas result in no value, not until these ideas are put in practice Therefore, implementation of strategy is the most important aspect of the strategy management task. The DT-Sacco sector has developed significantly over the past ten years as a financial intermediary, partly due to the establishment of the regulatory authority SASRA, which has imposed strict regulatory framework. In Kenya DT- Saccos play a key role in assisting Kenyans have access to credit at an affordable rate. This is a significant role to the realization of vision 2030. To be able to do this, DT- Saccos need to improve their performance to meet their member’s current and future requirement. They therefore require the most effective strategy formulation and implementation practices that will enable them to improve their performance to survive the stiff competition they face from other financial institution. The theories that informed the study were resource-based view theory and upper Echelons theory. The study adopted a cross-sectional descriptive research design. A census approach was used to collect data from all 42 DT-Saccos licensed to operate in Nairobi County and data was analyzed using SPPS software. A multiple regression model with variables of leadership, employee development, communication and performance were employed to test the hypothesis of the study. The study aimed at establishing the influence of strategy implementation practices on the performance of DT-Saccos in Nairobi County. The findings indicated a positive and significant relationship existed between strategy implementation practices and performance of DT-Saccos. The Recommendation of the study is that DT-Saccos should intensify the efforts placed in the strategy implementation process, since this has been shown to have a positive influence on the performance of the DT-Saccos. The Sacco top management team is also encouraged to exploit the different strategy implementation practices that will significantly improve their strategy implementation success rate. This will lead to improved performance.