Innovation Strategies and Performance of Savings and Credit Co-operatives Societies in Kenya

Abstract

The study sought to establish the influence of innovative strategies on the performance of Savings and Credit Cooperatives in Kenya (SACCOs). The study was anchored the Resource-Based View (RBV), Innovation Diffusion Theory, and the Theory of Changes in Market framework. The study employed a descriptive survey design to investigate SACCOs in Kenya, targeting managers of the 176 SACCOs registered by SASRA in 2023. A sample of 53 SACCOs was selected using a 30% sampling ratio. The study investigated innovation within SACCOs in Kenya, focusing on product, process, and market innovations. Positive perceptions among respondents indicated SACCOs' proactive nature in adapting to member needs. Successful technological implementations, adept market strategies, and robust financial performance were highlighted. Correlation and regression analyses validated a positive relationship between innovations and SACCO performance. Limitations included potential response bias and context-specific findings. Recommendations called for supportive regulatory frameworks, financial literacy programs, and continuous assessment of regulations. Practitioners were advised to prioritize innovation across product, process, and market strategies, while future research should explore cultural influences, leadership roles, and the long-term sustainability of innovation in SACCOs.