Influence of Strategic Purpose on Sustainable Performance of Deposit Taking Savings and Credit Cooperatives in Kenya
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 3
Abstract
Strategic purpose is critical to enterprise performance as it provides direction and plans on how organizational factors and actors could lead to superior performance. Therefore, enterprises that understand influence of strategic purpose on their operations implement optimal strategies that lead to sustainable performance. However, most cooperatives have had unsustainable performance and consequent low survival rate due to inadequate information on the influence of strategic purpose on sustainable performance. Thus, the specific objective of the study was to establish influence of strategic purpose on sustainable performance, by evaluating their existence, contents, clarity and awareness of vision, mission, goals and objectives. The study was an explanatory cross-sectional survey targeting all the deposit taking savings and credit co-operative societies (SACCOs) in Kenya. Questionnaires and document reviews were used to collect data for analysis. Descriptive analysis revealed that vision, mission, goals and objectives positively influence growth in assets, incomes and returns on assets (ROA) among other measures of sustainable performance in SACCOs. Further, Strategic purpose was found positively correlated and to significantly explain variation performance of SACCOs. The regression beta coefficients also indicate that a unit increase in Strategic purpose would enhance sustainable performance of SACCOs. In addition, SACCOs studied have myriad and conflicting social and economic objectives. The resultant confusion may reduce extent of their realization. Strategic purpose also enhances sense of ownership and belonging necessary to the survival and sustainability of Saccos. The study recommends that as SACCOs respond to intensified competition by adopting competitive strategies resembling those used by commercial banks, they should ensure the strategic purpose is protected and strategies are not in conflict with cooperative values. The SACCOs should also have optimum number of well-crafted vision; mission, goals and objectives to enable them enjoy benefits of increased volume of business, in addition to being more competitive and sustainable.
Authors and Affiliations
Kinyuira Daniel K. , Gathenya Jane W. , Muturi Willy M.
Keywords
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- EP ID EP410090
- DOI 10.9790/487X-2003103037.
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