EFFECT OF STRATEGIC MANAGEMENT DRIVERS ON FINANCIAL PERFORMANCE OF MICROFINANCE INSTITUTIONS IN NAIROBI, COUNTY
Abstract
The reason for this examination was to research impact of strategic management drivers on the performance of microfinance institutions in Nairobi, Kenya. The examination particularly intended to research on how ICT, organizational learning, strategic leadership and competitive positioning impact on the performance of microfinance institutions in Nairobi. The research study made use of simple random sampling and selected 32 microfinance institutions based in Nairobi. The research study used both secondary data from Bank Supervision report for year 2017 and primary data from administering of of questionnaires. For data analysis, descriptive statistics such as, mean and frequencies were used. To rate the factors in order of their importance, mean scores were applied. SPSS was employed for the purpose of creating frequencies, descriptive and inferential statistics which were then employed to deduct conclusions and generalizations with respect to the study population. Descriptive statistics employed were mainly frequencies, mean scores and standard deviation. Inferential measurement that the studies made use of were regression and correlation analysis. This research study study discovered that ICT and financial performance of MFIs in Nairobi had a positive and noteworthy relationship. The investigation detected that organizational learning and financial performance of MFIs in Nairobi County had a positive and meaningful relationship. The investigation further revealed that strategic leadership had consequential influence on the financial performance of MFIs in Nairobi County. Finally this investigation found out that organizational structure had positive and noteworthy impact on the financial performance of MFIs in Nairobi County. The investigation concluded that indeed there was significant relationship between financial performance of MFIs and ICT, organizational leadership, strategic leadership and the organizational structure. The investigations propose that MFIs should enhance their information communication technology by automating services for effective transactions.
Key words: Strategic Management Drivers, Information Communication Technology, Organizational Learning, Strategic Leadership, Organizational, Financial Performance
CITATION: Kiambi, J. G., & Kariuki, P. (2019). Effect of strategic management drivers on financial performance of Microfinance institutions in Nairobi, County. The Strategic Journal of Business & Change Management, 6 (2), 1446 –1460.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1204
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