Browsing by Author "Bundi, Moses Kimanthi"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Effect of strategic innovations on the performance of savings and credit cooperative societies in Nairobi city county, Kenya
    (Chuka University, 2025-10) Bundi, Moses Kimanthi
    Strategic innovation is crucial for long-term success. Savings and Credit Cooperatives (SACCOs) in Kenya are instrumental in Gross domestic product (GDP) growth and uplifting the livelihoods of the people through job creation, poverty eradication by enhancing financial inclusion. Despite having a huge potential for growth, SACCOs in Nairobi City County have witnessed a decline in performance. While most of the SACCOs in Nairobi City County have started adopting various innovations, it is apparent from the performance that they are yet to harness well on these innovation strategies to improve their performance. Strategic innovation is a strategic management tool that can influence organizational performance, enhance competitiveness, adaptability and long-term sustainability. Anchored in the strategic management perspective, this study examined the effect of strategic innovations on performance of SACCOs in Nairobi City County. The specific objectives were to examine the effect of product innovation, process innovation and marketing innovation on performance and the moderating effect of SACCO size on the relationship between strategic innovation and performance. This study was anchored on Schumpeter theory of innovation, dynamic capability theory and resource based view. Descriptive research design was adopted with a population of 177 SACCOs in Nairobi City County. The study adopted a census technique and the respondents were 177 chief executive officers or their equivalent in the SACCOs. Data was collected using a closed-ended questionnaire and a data collection sheet. Data was analyzed using descriptive and inferential statistics and with the aid of Statistical Package of Social Sciences version 28.0. Cronbach’s alpha was used to test reliability. Construct validity was tested using regression analysis. The content validity was done through research supervisors who checked if the research instrument captures all the relevant aspects to answer the research questions. The pilot study involved 18 respondents from 18 SACCOs in Kiambu County which constitute ten percent of the targeted chief executive officers. Simple and multiple regression analysis was done to establish the relationship between variables. Correlation analysis was used to test the strength of the relationship between variables. Data was presented using tables and figures. T-test and F- test was used to test hypothesis at 5% significance level. The results of the study indicate that product innovation was statistically insignificant (β=-0.051, P-value=0.541>0.05). The results of the study indicate that process innovation and marketing innovation were statistically significant (β=0.634, P-value=0.000<0.05, β=0.548, P-value=0.000<0.05) respectively. The results of the study indicate that the interaction effect between strategic innovation and SACCO size was statistically significant (β=0.279, Pvalue=0.016<0.05). Savings and Credit Cooperatives are encouraged to adopt modern technologies and efficient systems that streamline operations, reduce costs, and improve service delivery. SACCOs should strengthen marketing efforts by embracing digital platforms, targeted campaigns, and member engagement strategies to increase visibility and attract new members. SACCO managers should continuously improve internal operations by adopting technology-driven process innovations such as automated loan processing systems, mobile banking applications, and real-time data management tools. Furthermore, policy makers should develop and implement flexible guidelines that support digital transformation, such as e-banking, automated loan systems, and electronic record management, without imposing excessive compliance burdens.