Strategy determinants on organizational growth among savings and credit co-operative societies in Kisii county

Abstract

Numerous institutions establishments are currently facing the imminent risk of closure as a result of mismanagement, which has placed them in a precarious financial situation. The SACCOS, totaling 2,200 in number, were declared dormant or unknown by SASRA due to their failure to meet the required criteria. The aforementioned circumstances led to the initiation of a research investigation into strategy determinants on theSACCO growthin Kisii. The mainaiminthis study was to examine the effect of strategic fund mobilization, strategic investmentsand strategic information dissemination. The study was founded on Efficiency Structure Theory, Neoclassical Theory of InvestmentandModern Portfolio Theory. A total population fromstaff members in the SACCOS was 342. The sampling methodology was stratified random sampling. The sample size was 68 respondents, which corresponds to 20% of the target population. Data collectionwas collected usingquestionnaires. The questionnaire waspilot testedwith a sample of six respondents from selected Sacco in Kisii town. The reliability tests were conducted by assessing its Cronbach alpha value. The research employedboth descriptiveanalysisand inferential statistical analysessuch as regression and correlation analysis.The SPSS software was utilized to compute percentages, frequencies, mean values, and standard deviations.The study's results showed that SACCOSbenefited from strategic fund mobilization, and that this benefit was statistically significantas shown by (β) 0.224,t=1.859, p value 0.05).Based on the findings of the the analysisin Saccos in Kisii County, afavourable and statistically significant correlation (β)=0.849, t=4.438,p0.05) was found between Strategicinvestmentandorganizational growth.Still,there was negative as well as notable importance amongst Strategicinformationdisseminationand organizational growth (β) -.161, t=-.664, p value 0.05).The study concluded that high member default rates do hurts Sacco growth. Thus, high default rates indicated inadequate financial planning by members, which hampered Sacco expansion. Sacco invests in service diversification to boost SACCO’s growth by producing new financial products and entering new markets with stronger growth prospects. The study recommends thatauthorities shoulddevelop mechanisms to help SACCOS access capital for expansion and liquidity management