Publication: Strategy Determinants on Organizational Growth Among Savings and Credit Co-operative Societies in Kisii Count
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2024-06
Journal Title
Journal ISSN
Volume Title
Publisher
Journal International of Business Management
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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 s
ituation. 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 t
he
SACCO growth
in Kisii. The
main
aim
in
this study was to examine the effect of strategic fund mobilization,
strategic investment
s
and
stra
tegic information dissemination
.
The study was founded on Efficiency Structure
Theory, Ne
oclassical Theory of Inve
stment
and
Modern Portfolio Theory
.
A t
otal population
from
staff 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 collection
was
collected using
questionnaires. The questionnaire
was
pilot test
ed
with a sample of six respondents from selected Sacco in Kisii
town. The reliability tests were conducted by asse
ssing its Cronbach alpha value
.
The research employ
ed
both
descriptive
a
nalysis
and inferential statistical analyses
such 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
SACCOS
benefited from strate
gic fund mobilization, and that this benefit was statistically
significant
as shown by
(β)
0.224,
t=
1.859
, p value 0.05).
Based on the findings of the
the analysis
in Saccos in
Kisii County, a
favourable and statistically significant correlation (β)=
0.849
, t=4.438
,
p0.05) was found between
Strategic
investment
and
organizational growth
.
Stil
l,
there
was negative
as well as notable importance amongst
Strategic
information
dissemination
and
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 reco
mmends that
authorities should
d
evelop mechanisms to help
SACCOS
access capital for expansion
and liquidity management.
Description
Keywords
Strategy Determinants, Organizational Growth, Strategic Fund Mobilization, Strategic Investments, Strategic Information Dissemination