Strategic management practices on performance of savings and credit cooperative societies in Garissa county, Kenya

Abstract

Strategic management practices were crucial for improving organizational performance, particularly for cooperatives facing unique challenges compared to traditional businesses. The purpose of the study was to examine the influence of strategic management practices on the performance of savings and credit cooperative societies in Garissa County, Kenya. Specific objectives included: examining the influence of resource allocation on the performance of savings and credit cooperative societies; assessing the influence of strategic technology adoption on the performance of savings and credit cooperative societies; analyzing the influence of customer retention on the performance of savings and credit cooperative societies; and analyzing the influence of employee motivation on the performance of savings and credit cooperative societies in Garissa County, Kenya. The study was supported by the Resource-Based View (RBV) and the Technology Acceptance Model (TAM). A descriptive research design was adopted to investigate the variables without manipulating them. The target population included 60 managers, 200 employees, and 2,000 SACCO members, bringing the total target population to 2,260 individuals across Garissa County SACCOs. Data were collected using questionnaires. Before data collection, the instruments were subjected to validity checks and reliability tests. Descriptive statistics (means, standard deviations, frequencies) were used to summarize the data. Inferential statistics, including binary logistic regression, were used to examine relationships between variables. This was achieved using SPSS version 25. The results were presented using tables and charts. From a sample of 340 distributed questionnaires, 312 were returned, yielding a high response rate of 91.8%. Descriptive statistics revealed strong agreement on strategic resource allocation (Mean = 3.91), strategic technology adoption (Mean = 3.87), customer retention (Mean = 3.83), and employee motivation (Mean = 3.78), indicating that these practices were widely implemented. Regression analysis showed that all four variables had statistically significant positive relationships with SACCO performance (p < 0.05). The study concluded that strategic resource allocation, technology adoption, customer retention, and employee motivation significantly influence SACCO performance. The more strategically these practices are applied, the better the SACCOs perform in terms of revenue growth, service delivery, and member satisfaction. Based on the findings, the study recommends that SACCOs in Garissa strengthen budgeting alignment with strategic goals, invest in digital tools, enhance customer engagement programs, and develop robust employee motivation schemes including career growth opportunities and performance-based incentives. Additionally, policymakers should support capacity-building initiatives to improve strategic planning across SACCOs. Further research should examine longitudinal impacts of these practices and expand to other regions for broader generalizability.