INFLUENCE OF STRATEGIC MANAGEMENT PRACTICES ON PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN NAIROBI COUNTY, KENYA

Abstract

The increase of competition in the financial sector, robust strategic management has become of utter essence to saving and cooperative societies in Kenya. Indeed, Sacco’s in Kenya face many challenges and are forced to adopt various strategic management practices. However, even as Sacco’s adopt these strategic management practices, they face other numerous challenges that hinder the efficient actualization of such practices. The study establishes the influence of strategic management practices on performance of savings and credit co-operative societies in Nairobi County, Kenya. The study adopted a descriptive cross-sectional survey. The study population was the employee of 35 Saccos in Nairobi County at their head office in Nairobi. The study population composed of 486 members of staff in different managerial levels currently working at different Saccos within Nairobi County. Stratified random sampling technique was used to select the sample of 146 respondents. Content analysis was used to test data that is qualitative in nature or aspect of the data collected from the open ended questions. Multiple regression analysis was done to establish the influence of strategic management practices on performance of savings and credit co-operative societies in Nairobi County, Kenya. The study revealed that unsupportive organization structure affects performance, there were long chains of command that affected performance, the institution's structure provides overall framework for achieving organization goals and there is a clear vision that governs change in the organization. The study also established that, institution's culture is a powerful driving force in implementation of strategic management practices and is consistent with the strategic management practices. The study found out that employees involvement in this organization influence the organization profitability, organization employees are involved during strategic management practices implementation and employees involvement contributes positively to implementation of strategic management.