ORGANIZATIONAL LEARNING CAPABILITY AND PERFORMANCE OF DEPOSIT-TAKING MICROFINANCE INSTITUTIONS IN KENYA
Abstract
This study examined the influence of organizational learning capabilities on performance of deposit-taking microfinance institutions in Kenya. The theoretical framework was anchored on the resource-based view theory, dynamic capability theory, organizational learning theory, knowledge-based view theory and social learning theory. The study employed the positivist research philosophy and the quantitative non-experimental research methodology. The study utilized the correlational research design to test noncausal relationship between the study variables without the researcher controlling any of them. The target population consisted of 214 managers comprising of 107 branch managers and 107 operations managers of deposit-taking microfinance institutions in Kenya. A self-administered structured survey questionnaire was used to collect primary data. A cross-sectional survey-based approach was used. The collected data was coded, edited, and entered into the Statistical Package for Social Sciences (SPSS) version 26 to create a data sheet that was used for statistical analysis. Descriptive statistics and inferential statistics were used for data analysis. The Pearson’s product moment correlation analysis was performed to confirm or deny the relationship between the study variables. The correlation results indicated that individual level learning capability, group level learning capability, organizational level learning capability and inter-organizational level learning capability had positive and significant relationship with performance of deposit-taking microfinance institutions in Kenya. The multiple regression results indicated that individual level learning capability, group level learning capability, organizational level learning capability and inter-organizational level learning capability had positive and significant influence on performance of deposit-taking microfinance institutions in Kenya. The policymakers should initiate policy review to encourage project managers to implement the organizational learning capabilities to foster the performance of deposit-taking microfinance institutions. Future researchers should examine the moderating influence of environmental turbulence on the relationship between organizational learning capabilities and firm performance in other regions or sectors.
Key Words: Learning Capability, Individual Level, Group Learning, Organizational, Inter-Organizational Level
CITATION: Wambugu, R. W., & Kising’u, T. (2024). Organizational learning capability and performance of deposit-taking microfinance institutions in Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1028 – 1049. http://dx.doi.org/10.61426/sjbcm.v11i2.2967
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2967
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