Influence of garbage can model on performance of savings and credit cooperative societies in Nyamira county, Kenya

Abstract

Strategic decision-making was considered a fundamental managerial activity in all establishments, whether small or large, profit or not-for-profit, private or public, as it offered an opportunity to realign or reposition an organization to better fit its environment. With globalization and the rapid advancement of businesses across the globe, managers needed to leverage and utilize all available resources to protect their organizations against potential risks. Garbage Can decision-making was a decision-making model that suggested decisions were made in an unstructured and haphazard way, where problems, solutions, decision makers, and opportunities came together randomly, like items thrown into a garbage can. In this model, decision-making was seen as a process in which problems and solutions were matched as they arose, with decision makers randomly selecting from the available options. The study aimed to assess the influence of business problems on the performance of Savings and Credit Cooperative Societies in Nyamira County, Kenya, to determine the influence of business solutions on the performance of Savings and Credit Cooperative Societies in Nyamira County, Kenya, to establish the influence of business decision makers on the performance of Savings and Credit Cooperative Societies in Nyamira County, Kenya, and to evaluate the influence of business choice opportunities on the performance of Savings and Credit Cooperative Societies in Nyamira County, Kenya. The study was guided by four theories; normative decision-making theory, contingency theory, bounded rationality theory and utility theory. Theoretical propositions, arguments, and relevance in the study will be presented. The study used a descriptive and qualitative research design. The target population consisted of 973 staff members working within 19 Savings and Credit Cooperative Societies (SACCOs registered under the SACCO Societies Regulatory Authority (SASRA) in Nyamira County. The study employed a purposeful sampling approach. The final sample comprised seven strategic managers from each of the 19 SACCOs with sample of 133. Data for the study was obtained through questionnaires that included both open-ended and close-ended questions. The collected data was analysed using both descriptive and inferential statistical methods, aided by the Statistical Package for Social Sciences (SPSS). Descriptive statistics, such as mean, standard deviation, and percentages, were applied to interpret the data. Regression and correlation analyses served as the inferential statistics. The results were displayed using tables. The regression results show that Business Problems (β = 0.510, t = 6.701, p < .05), Business Solutions (β = 0.074, t = 1.968, p < .05), and Business Decision Makers (β = 0.493, t = 4.018, p < .05) have statistically significant positive effects on SACCO performance. However, Business Choice Opportunities (β = 0.023, t = 0.36, p > .05) do not show a significant impact at the 5% level. These findings highlight the importance of strategic decision-making in SACCO management. The regression model was statistically significant in explaining these performance variations. It is concluded that these four independent variables play a critical role in influencing SACCO performance. To improve performance, focus should be on enhancing business solutions and decision-making processes, while also exploring additional factors that may contribute to performance variability.