Influence of Organizational Resources on Performance of Financial Services Associations in Makueni and Kitui Counties of Kenya

Abstract

Many organizations talk of strategic formulation whereby they develop strategies and put them into practice. However, many organizations fail to actualize these strategies due to a lack of proper implementation strategy. Many firms face challenges in strategic implementation due to a lack of resources. This study sought to examine the influence of organizational resources on the performance of financial services associations (FSAs) in Makueni and Kitui Counties of Kenya. This study followed a cross-section survey

method to collect primary data by using questionnaires that were administered online and through the drop- and-pick method. The study found that FSAs in Kitui and Makueni counties utilized internal resources more

in strategy implementation. Practices on resource allocation included technology, financial resources, and human resources. The study revealed an Exp(B) of 0.107 which was associated with a p-value of 0.001. The study concluded that the use of internal resources over external resources significantly increased the odds of high performance of FSAs in Kitui and Makueni counties. The study recommends Financial Service Associations (FSAs) in Kitui and Makueni counties utilize internal resources, including management expertise and financial strength, to capitalize on opportunities for improved performance. Additionally, FSAs should diversify revenue streams by introducing new products, prioritizing hiring and retaining skilled employees, investing in robust information security, adopting cutting-edge technology, and strategically allocating resources to optimize performance and cope with emerging demands during strategy implementation. The study emphasizes the importance of leveraging internal capabilities and proactive resource management for the success of FSAs.