| dc.description.abstract | This study sought to establish the relationship between stakeholder generic strategies and the financial
performance of deposit taking Savings and Credit Co-operatives societies in Kenya. The SACCO subsector is part
of the Kenyan Co-operative sector comprising of both financial and non financial cooperatives. Saving and credit
co-operative (SACCO) are the financial cooperatives. They are an important part of the financial sector in
Kenya, providing savings, credit and insurance services to a large portion of the population. Stakeholder
management is paramount in creating trust and confidence to key stakeholder especially in deposit taking
SACCOs and in keeping them satisfied. It has been argued that stakeholder management is decisive in
determining whether or not a company is or remain successful and that it has direct environment and bottom line
result of an organization. Panic in deposit taking financial institutions can cause great negative repercussions
and loss of customers and hence the need for a proactive stakeholder management. Systematic attention to all
parties who affect or may be affected by the organization’s behavior is critical to that organizations success.
Stakeholder management studies have mostly concentrated on normative branch of stakeholder management
theory. It is however important to extend the study to member - based co-operatives. The objective of this study
was to study the relationship between stakeholder management generic strategies and performance of SACCO
societies in Kenya. Descriptive research method was used in this study. Questionnaires ware used to collect
primary data. To ensure that the research instrument yields valid data, the researcher engaged expert in the
relevant field in scrutinizing it. The designed instrument was counter checked by the supervisor and peers in the
area of specialization. Pilot study was carried out to check on the reliability and validity of the instrument and a
Cronbach’s Alpha of 0.914 was obtained. Data was collected from a sample of 64 Deposit taking SACCOs out of
a population of 180 licensed DTS. This made a sample of 130 respondents. Collected data was then edited in the
field to clean it up. Data was processed using descriptive analysis and multiple regression analysis performed to
determine the relationships between the stakeholder generic strategies and performance of SACCO societies.
Data analysis was done using Statistical Package of Social Science (SPSS) Version 20. Research findings were
that all the five strategies individually and when combined have positive relationship with the performance of
deposit taking SAACOs. The research contributes to stakeholder management theory by supporting previous
studies that stakeholder management strategies have positive relationship with SACCO societies’ performance.
The study offered practical recommendations to managers to be proactive in stakeholder management and to
enhance various relationships and financial performance of their SACCOs. These strategies should be
incorporated in the strategic plans for achievement of good results and not as disjoined activities. It has provided
instrumental contribution to stakeholder theory by finding out that, member – based firms who employ
stakeholder management strategies enhance their financial performance, hence extending the body of knowledge. | en_US |
