INTERNAL ENVIRONMENT AND FINANCIAL PERFORMANCE OF DEPOSIT TAKING MICRO FINANCE INSTITUTIONS IN NAIROBI CITY COUNTY, KENYA
Abstract
This study examined the influence of internal environment on the financial performance of deposit-taking microfinance institutions in Nairobi City County, Kenya. The specific objectives of the study included to examine the effect of organization structure on the financial performance of deposit-taking microfinance institutions in Nairobi City county, Kenya and to find out the influence of organizational culture on the financial performance of deposit-taking microfinance institutions in Nairobi City county, Kenya. The study was premised on a descriptive research design. The study targeted management of the licensed deposit taking microfinance institutions. The data collection instruments were semi-structured questionnaires and the data collected was analyzed using SPSS. The research utilized both descriptive and inferential analysis. The descriptive results were presented using percentages and frequency tables. The research further utilized multiple regression model to estimate the effect of the independent variable on the dependent variable. For the qualitative data the study adopted content analysis. From the study we concluded that the type of organization structure, organization culture, information system adoption and resource capability affects the flow of information and work coordination in an organization and this has direct effect on financial performance of deposit taking microfinance institutions. One of the major areas which should be considered for further research is the relationship between employee motivation and financial performance of microfinance taking deposits. This area lacks enough literature and kept on coming throughout research process.
Key Words: organization structure, organizational culture, Financial Performance
CITATION: Kiara, A. K., & Ndede, F. W. S. (2019). Internal environment and financial performance of deposit taking microfinance institutions in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 6 (3), 145 – 159.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1305
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