EFFECT OF COMPETITIVE STRATEGIES ON SUSTAINABLE COMPETITIVE ADVANTAGE OF SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA (A SURVEY OF SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN MOMBASA COUNTY)

Abstract

Although Savings and credit cooperative societies (SACCO) are formed to promote thrift among members by affording them an opportunity to accumulate savings and deposits to provide credit at fair and reasonable rate of interest, they operate in an competitive environment characterized by banks, micro finance institutions, insurance companies, capital market and pension fund that offer similar or near equal financial services to the same clientele in Kenya. The aim of the study was to establish the effects of competitive strategies on sustainable competitive advantage of SACCOS in Kenya. A descriptive survey research design was adopted with a survey involving 168 SACCOs according to the Kenya Union of Savings & Credit Co-operatives ltd. Random sampling was used to select a sample from the target population of 168 SACCOS. The study used semi-structured questionnaires which once filled-in and returned were coded and entered into Statistical Package for Social Sciences version 16.0. The findings indicated that the study tested the research framework with key variables as competitive strategies and sustainable competitive advantage. Findings indicated that SACCOs in Mombasa County attested to its competitive strategies, with majority of the respondents agreeing that their SACCOs displayed the two competitive strategy attributes of cost leadership and differentiation. The study also revealed a positive relationship between competitive strategies and sustainable competitive advantage with all independent variables having a significant effect on sustainable competitive advantage of SACCOs in Mombasa County. The researcher thus recommended that SACCOs should constantly review their product/service strategies, embrace technology in all operations especially information communication technology, embrace growth strategies including mobile technology adoption, branch network expansion, ATMs, research and marketing initiatives, adoption of agency banking and rebranding as well as adoption of relevant information system and greater participation in mobile money revolution which will enable the subsector to be more effective and efficient.