EFFECT OF TECHNOLOGICAL ADOPTION STRATEGY ON THE PERFORMANCE OF SACCOS IN KENYA

Abstract

Purpose: To examine the effect of technological adoption strategy on the Performance of SACCOs in KenyaMethodology: The study was a cross-sectional survey with a descriptive research design. This design is appropriate because it is considered suitable for gathering information and generating appropriate conclusions with respect to the research questions. The target population of this study was the 181 authorized deposit taking SACCOs in Kenya that have been in existence for at least the last 5 years SASRA (2014). The firms which have been there for 5 years are considered to have adequate knowledge and have deposit mobilization strategies in place. The number of respondents was 181 CEOs and Business development managers, who are in charge of strategies. The study used questionnaires as the main data collection instrument that contained both open and closed ended questions. Questionnaires were preferred because they are effective data collection instruments that allow respondents to give much of their opinions pertaining to the research problem. Primary data was collected through administering of questionnaires to Members of the SACCOs, senior staff of the SACCOs and Cooperative Ministry/regulatory officials. The study employed descriptive analysis technique on the collected data. Multiple regression analysis was used to establish the relationship between the dependent and independent variables.  Results were presented using frequency tables and figures.Results: Correlation analysis showed that technological adoption strategy and performance of Saccos are positively and significantly associated. Regression analysis indicated that technological adoption strategy has a positive and significant effect on performance of Saccos in Kenya. The hypotheses results indicated that there is a significant relationship between technological adoption strategy and performance of Saccos in Kenya. Unique contribution to theory, practice and policy: From the study findings, it was recommended that Saccos should lay out procedures and strategies such as product innovation, market innovation, technological innovation and process innovation so as to enhance their penetration in the market. Further, the study recommended the need for the firms to invest in technological advancement by equipping their staff with technical skills and also providing them with the necessary facilities.