Growth Strategies on Performance of Transport Service Savings and Credit Cooperative Organizations in Nairobi City County, Kenya

Abstract

The goal of this research was to evaluate how growth strategies affect the performance of Nairobi City County Savings and Credit Cooperative Organizations (SACCOs) that provide transportation services. The purpose of this research was to explore the effect of market penetration, market development, product development, diversification strategies effect on performance of transport service Savings and Credit Cooperative in Nairobi City County, Kenya. The study adopted the following theories: Game theory, Porters competitive theory, Resource Based View Theory, and Portfolio management theory. The study used descriptive survey research approach. A total of 73 registered Matatu Savings and Credit Cooperative Organizations were targeted. One manager from four categories of general manager, human resource manager, finance manager, and operations manager were purposively targeted yielding a total of 292 units of observation for the study. Primary data was collected using a 5-point slanting Likert scale questionnaire with closed ended questions. The information gathered was evaluated using descriptive and inferential statistics in MS Excel and the   SPSS program V24. The study tools were piloted to test its validity and reliability. The study results indicated that product development strategy had positive and significant effect on organizational performance. On the other hand, the regression analysis revealed that the growth strategies explained up to 65.8% change in organizational performance of transport service SACCOs in Nairobi County. The study concluded that growth strategies significantly influence performance of transport service SACCOs in Nairobi city county, Kenya. This study recommends that management of transport Sacco pursuing product development strategies to come up with products that meet the changing needs of their customers. In particular, the Saccos should offer services that are youth friendly and ability to accommodate persons with disability. Management of Sacco should strengthen the use of market development strategy. Management of Saccos should invest more in market development strategies so as to enhance their performance. Lastly, Sacco’s should offer boarding and lodging services which is closely related to transport services and at the same time they should also provide courier services.

Keywords:Diversification, Market development, Market penetration, performance, Product development, Strategy.

DOI: 10.7176/EJBM/15-4-01

Publication date: February 28^th 2023