Influence of Business Strategies on Change Management Among Deposit-Taking Savings and Credit Cooperatives in Nairobi County, Kenya.

Abstract

Savings and Credit Cooperative Organizations have a vital impact on the economy of Kenya as they contribute significantly not only to the achievement of the pillars of Vision 2030, but also to the African Union's Vision 2063 agenda, and the United Nations’ Sustainable Development Goals. However, they operate in an unpredictable environment that threatens their sustainability and calls for change management practices. This study evaluated the influence of business strategies on the efficiency of change management in Cooperatives that take member deposits in Nairobi County, Kenya. Specifically, the study aimed to determine the influence of product diversification, member participation, rebranding, and monitoring & evaluation strategies on SACCOs' ability to manage change. The study was anchored on the Product Life Cycle, Kotter 8-step and Kurt Lewin's change management Theory. The study adopted a descriptive research design, of 90 Deposit Taking Cooperative societies with head offices registered in Nairobi County as the unit of analysis, and 330 managers drawn from SACCOS in five different sectors as the target population. The study used stratified random sampling where 30% of members from each group were chosen for the sample, resulting into a sample size of 99 respondents for the study. Primary data was collected using structured questionnaires, with the criterion predictive validity model applied to test for validity and Cronbach's alpha coefficient applied to compute reliability. Data was gathered using the drop-and-pick-later method, while data analysis involved the utilization of both inferential and descriptive statistics. The research findings indicated a significant and positive relationship between product diversification, member participation, rebranding, monitoring and evaluation strategies, and change management efficiency. The regression analysis showed that a single-unit increase in product diversification, rebranding, member participation, and monitoring and evaluation led to increased change management efficiency. The research established that SACCOs are risk-averse and tend to avoid new territories, which exposes them to stiff competition from other financial players. Consequently, the study recommended that SACCOs should diversify into entirely new and unrelated products, invest in products for the youth, invest in Member Education forums to increase member participation in the SACCO's affairs, and regularly review and monitor their strategies through periodic strategic reviews. The study further suggested that the rebranding strategy should not only be used as a tool for opening the common bond but also for increasing the SACCO outlook to a national and even international level. In summary, this study provided valuable insights into the SACCO sector's resilience and adaptability, emphasizing the need for strategic agility in an unpredictable landscape. The study's findings have significant implications for SACCOs seeking to enhance their change management capabilities and better position themselves in the competitive financial services industry