Effects of Competitive Strategy on the Performance of Deposit Taking SACCOs in Nairobi County, Kenya

Abstract

The Sacco sector has globally experienced growth and diversification in the range of products and services that the sector provides in the market. In Kenya, Deposit Taking Saccos (DTSs) have been licensed to provide a wide range of products and services to their members and customers. The objective of this study was to establish the effect of competitive strategy on the performance of Deposit Taking Saccos in Nairobi County, Kenya. The study was anchored in the Resource Based View (RBV) of the firm. The study hypothesized that there is a relationship between competitive strategy and organization performance. Descriptive research design was applied. The population of the study – a census, comprised of all 42 DTSs in Nairobi County, Kenya. The study involved obtaining data from every member of the population through a questionnaire. The study results support the position that competitive strategy has a positive effect on organization performance. This finding is consistent with the results of previous studies. This implies that policy makers, administrators and managers of DTSs have to formulate generic competitive strategies for enhancement of organizational performance.

Keywords: Competitive Strategy, Performance, Deposit Taking Saccos (DTSs)