| dc.description.abstract | The study focused on the growth of Deposit-Taking Savings and Credit Cooperative Organizations (DT-SACCOs) in Meru County, Kenya, amid a general national decline in their numbers. Despite the large customer base making deposits and savings, consistent growth has been elusive. The research examined the impact of market competition, technology adoption, management capability, and product innovation on DT-SACCO growth in Meru County, Kenya. It was guided by the dynamic capabilities’ theory, resource-based view theory, and Schumpeter’s theory of innovation. A mixed-method approach using both quantitative and qualitative data was employed. Data were gathered from 10 DT-SACCO headquarters in Meru County through a descriptive survey design. Respondents included 10 purposively sampled branch managers and 170 randomly sampled officers. Data collection methods included interviews, questionnaires, and secondary financial reports. Validity and reliability were assessed using various methods, including Cronbach’s alpha. SPSS version 27 was used for both descriptive and inferential statistical analysis. Findings revealed at a 99% significance level and α < 0.001, the market competition correlation coefficient value was r = r=0.609. This showed that market competition had a moderately high influence on growth. The technology adoption correlation coefficient value was r = 0.830 with α < 0.000. This demonstrated a high influence of technology adoption on growth. The management capability correlation coefficient value is r = r=0.320 with α < 0.002. This showed that management capability had the least influence on growth. The correlation result for product innovation is r = r=0.571 with α < 0.003. This showed that product innovation had a moderate influence on growth. Furthermore, market competition strategies excluded staff, contributing to high turnover. Technology adoption, though advanced with internet and mobile banking, suffered from cybersecurity threats. Weak institutional frameworks hindered management effectiveness. Product innovation was inconsistent due to unpredictable market demands. The study recommends the need for the management to develop policies to emphasize on how staff can be included in making decisions to improve their commitment level to the organization and take advantage to market competition. If there are policies that encourage staff involvement in decision making, it will enhance cohesion and effective operations. The study recommends that in terms of technology adoption, there is need to give priority to cybersecurity and consistent training in technology, to reduce operational risk exposure. In terms of management capability, the results have categorically pointed out the need for explicit institutional policies that are crucial towards banking processes, management of risk, and staff mentorship programs. When such policies are implemented, the management should ensure that they are in line with SASRA’s oversight. In terms of product innovation, the findings pointed out the need for established policies that guide on customer feedback mechanism, research and development, as measures to enable the DT-SACCOs effectively adapt to market shifts. | en_US |
