Influence of Innovative Strategies on the Competitive Advantage of Deposit Taking Saccos in Nairobi County

Abstract

This study explored how innovative strategies influence the competitive advantage of Deposit-Taking SACCOs (DT-SACCOs) in Nairobi County, emphasizing the link between innovation and organizational performance. It drew on Dynamic Capability Theory and Porter’s Competitive Advantage Theory to emphasize the value of adaptability and strategic positioning in the dynamic markets. Empirical studies underscored the role of innovation globally while noting gaps in localized research. A descriptive cross-sectional survey design was employed, targeting all 46 DT-SACCOs licensed by SASRA. Data were gathered using structured questionnaires distributed through Google Forms and a drop-and-pick method, achieving a 72% response rate (33 respondents). The survey included questions on demographics, organizational context, and strategic practices measured on a 5-point Likert scale. Secondary data from SASRA reports and academic literature supplemented primary data. The collected data was analyzed using descriptive and inferential statistics, including regression analysis. Findings revealed a significant positive correlation between innovative strategies—product, process, marketing, and technological innovations—and competitive advantage. Regression results indicated that 32.1% of the variation in competitive advantage was attributable to these strategies. The study emphasized that adopting tailored innovations is vital for enhancing SACCO performance and sustaining competitiveness. Key recommendations included integrating customized innovative approaches and conducting further research on the impact of leadership and emerging technologies on innovation. Notable limitations included difficulties in data access, response bias, and challenges in generalizing findings to other industries due to sector-specific factors.