Corporate Growth Strategies and Performance of Savings and Cooperative Societies in Mandera County, Kenya

Abstract

Consistent and continuous threats from the environment have been the order of the day in the corporate world and therefore businesses need to adjust accordingly in order to survive. Just like is the case in other organizations, there is a need for SACCOs to be in a position to respond strategically to the turbulence and environmental changes they operate in. SACCOs have made little effort to master corporate growth strategies for the changes in the environment. This study therefore interrogates the influence of Corporate Growth Strategies on performance of Savings and Cooperative Societies in Mandera County, Kenya. The specific objectives are to establish the influence of Product Development Strategy on performance of Savings and Cooperative Societies in Mandera County, Kenya ; to assess the effect of Market Development Strategy on performance of Savings and Cooperative Societies in Mandera County, Kenya ; to determine the role of Divestment Strategies on performance of Savings and Cooperative Societies in Mandera County, Kenya and to explore the extent to which Diversification Strategies influences performance of Savings and Cooperative Societies in Mandera County, Kenya. The study is anchored on the Porter’s Competitive Advantage Theory, the Dynamic Capability Theory and Resource Based Theory to help explain the concepts from a theoretical point of view. An explanatory research design was adopted to achieve the objectives. Targeted population for the present survey was the four active SACCOS in Mandera county according to the Mandera County Integrated Development Plan (2013-2017). The plan indicates that the county has five registered SACCOs but only 4 with a total membership of 100 are active. Focus for the study was on the four SACCOs which are active. A quantitative method was adopted whereby data using structured questionnaires was collected. However, before using the questionnaire, its reliability was tested using a Cronbach Alpha Coefficient at a threshold of 0.7. Additionally, the quality of the content of the questionnaire was checked to make sure there are no typographical or form problems. Both descriptive and inferential analysis were used to examine the quantitative data. Correlation and regression analysis were the inferential methods used. Multivariate regression is the best option. Finally, tables and figures were used to present the study's results. The results of this study would greatly advance our understanding of corporate strategies that consider the constraints posed by environmental change on organizational performance. Furthermore, the gaps found in earlier and current research of the approach would be filled by scholars in the present and the future thanks to the findings.