Influence of corporate response strategies on performance of county pension fund in Nairobi county, Kenya

Abstract

Pension funds are very important to raise funds for employees and employers. However, Kenya's county pension funds are struggling with challenges mainly due to low employee morale, declining efficiency, lower profitability at the fund level and customer dissatisfaction. The main objective of this study was to determine the corporate response strategies that affect the performance of the Kenya County Pension Fund. The specific objective of the study was to find out the effect of product diversification; to strengthen the influence of the strategic alliance; assess the impact of staff training and development and identify the impact of differentiation in the Kenya County Pension Fund. The research was based on social security theory, Porter's five forces model, resource-based view and dynamic capability theory. This study adopted a descriptive design. The target group was 340 employees of the District Pension Fund. A sample size of 146 respondents was determined by proportional stratified random sampling. The research instrument of this study was questionnaires. A pilot test was conducted in Marsabit District to test the reliability and validity of the research instrument with Cronbach's alpha coefficients above 0.7. The collected data were presented in tables. Data analysis was performed using SPSS to generate descriptive statistics, which are means and standard deviations for regression and correlation analysis, as well as inferential statistics. Ethical considerations were followed at every stage of the study. Based on the results, the study concluded that there was a moderate positive and statistically significant correlation (r = 0.579; p < 0.05) between product diversification and performance of Kenya County Pension Fund. The study shows that there was a moderate positive and statistically significant correlation (r = 0.568; p < 0.05) between strategic alliances in Kenya County Pension Fund. The study shows that there was a moderate positive and statistically significant correlation (r = 0.5718; p < 0.05) between employee training and performance development in Kenya Pension Fund. The study shows that there was a moderate positive and statistically significant correlation (r = 0.594; p < 0.05) between the diversification strategy of Kenya County Pension Fund. This means that the diversification strategy will improve the performance of the Kenya Pension Fund. The researcher recommends entering a new market. The organization must respond to customer needs by developing new products and forming alliances with other organizations so that the organization can better serve the market and reduce costs. The organization should train staff with new skills to improve the performance of the Kenya County Pension Fund. This study suggests that future research should be conducted to establish product diversification strategies for the performance of the Pension Fund of Kenya.