| dc.description.abstract | This study sought to establish the relationship between stakeholder management
strategies and the financial performance of deposit taking SACCOs 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 with the
services provided. It has been argued that stakeholder management is decisive in
determining whether or not a company is or will 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 look into the
relationship between stakeholder management generic strategies and performance of
SACCO societies in Kenya. Stratified random sampling was done to determine sample
size. Data was collected from a sample of 64 Deposit taking SACCOs out of a
population of 180 licensed DTS. The sample size was 130 respondents. Descriptive
research method was used in this study. Questionnaires were 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. 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). Research findings were that: there was a significant positive relationship
between offensive, defensive, swing, hold, defensive, CSR strategy and financial
performance of DTSs individually. The combined model had a significant positive
relationship with the performance of deposit taking SAACOs. The conclusion was that
stakeholder management strategies significantly influenced financial performance of
DTSs. The research contributes to stakeholder management theory by supporting
previous studies that stakeholder management strategies have positive relationship with
firms‘ performance. The study offered practical recommendations to managers to be
proactive in stakeholder management and should adopt corporate social responsibility
strategy 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 should not be used as disjoined activities. The study 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 |
