EFFECT OF PRODUCT ORIENTATION ON PERFORMANCE OF SACCOS IN UASIN GISHU COUNTY
Abstract
Due to multiple financial service contributions, performance of SACCOs has been considered as one of the most important driving forces behind the economies of both developed and developing countries. However, SACCOs encounter many problems, and as a result, many of them perform dismally and sometimes end up under receivership management and eventually liquidated. Therefore, the study's main purpose was to determine the effect of product orientation on performance of SACCOs in Uasin Gishu County. Product Life-Cycle Theory informed the study. This study employed an explanatory research design. The study targeted both management and employees from 20 Saccos in Uasin Gishu County registered under SASRA (2019). The study used a stratified and random sampling technique to select employees. Questionnaires were administered to the sampled employees. To determine the validity of the questionnaire items, a pilot study was used to examine them, and their suggestions and comments was used as a basis to modify the research items. The Cronbach alpha coefficient was used as a reliability test. A value of above 0.7 confirmed the reliability of the research instruments. Data was analysed using descriptive statistics (frequencies and percentages, means, standard deviations and variances), and inferential statistics used were Pearson correlation and the multiple regression analysis. The analysed data were presented in the form of tables and charts. The study indicated that there was a positive linear effect of product orientation on performance of SACCOS (β1=.345, p=0.000). The study concluded that product orientation, focusing on effective pricing, quality services, and product differentiation, enhances competitiveness and performance. The study recommends that SACCOs should continue prioritizing product differentiation, focusing on competitive pricing, high-quality services, and diversified offerings to maintain market competitiveness.
Keywords: Product orientation, Performance of SACCOs, Uasin Gishu County
CITATION: Lelei, A. K. L., & Kwasira, J. (2025). Effect of product orientation on performance of SACCOs in Uasin Gishu County. The Strategic Journal of Business & Change Management, 12 (2), 676 – 689. http://dx.doi.org/10.61426/sjbcm.v12i2.3235
Full Text:
PDFReferences
Adedeji, B. S., Ong, T. S., Uzir, M. U. H., & Abdul Hamid, A. B. (2020). Corporate governance and performance of medium-sized firms in Nigeria: does SACCOs performance initiative matter?. Corporate Governance: The International Journal of Business in Society, 20(3), 401-427.
Al Aina, R., & Atan, T. (2020). The impact of implementing talent management practices on performance SACCOs performance. SACCOs performance, 12(20), 8372.
Alawattage, C., Graham, C., & Wickramasinghe, D. (2019). Microaccountability and biopolitics: Microfinance in a Sri Lankan village. Accounting, Organizations and Society, 72, 38-60.
Ali, S., Li, G., Yang, P., Hussain, K., & Latif, Y. (2020). Unpacking the importance of intangible skills in new product development and performance business performance; strategies for marketing managers. PloS One, 15(9), e0238743.
Barauskaite, G., & Streimikiene, D. (2021). Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods. Corporate Social Responsibility and Environmental Management, 28(1), 278-287.
Cheruiyot, T. K., Kimeli, C. M., & Ogendo, S. M. (2019). Effect of savings and credit co-operative societies strategies on member’s savings mobilization in Nairobi, Kenya. International Journal of Business and Commerce, 1(11), 40-63.
Chesigor, F. K. (2024). Corporate Entrepreneurship Strategy and Competitive Financial Performance of Deposit Taking Saccos in Kenya (Doctoral dissertation, KeMU).
Cichosz, M., Wallenburg, C. M., & Knemeyer, A. M. (2020). Digital transformation at logistics service providers: barriers, success factors and leading practices. The International Journal of Logistics Management, 31(2), 209-238.
Das, T. K. (2019). Future orientation in strategy making. Time issues in strategy and organization, 1.
Gachenga, J. N. U., Kinyariro, D. K., Wambu, C. K., & Maina, J. N. (2023). Lending decision, Sacco size and liquidity of farmers based deposit-taking Saccos in Kenya.
Hamisi, V. N., & Gichinga, L. (2020). Effect of Corporate Social Responsibilities on SACCOs performance of Deposit Taking SACCOs in Mombasa County. International Journal of Advanced Research and Review, 5(5), 35-49.
Hamisi, V. N., & Gichinga, L. (2020). Effect of Corporate Social Responsibilities on SACCOs performance of Deposit Taking SACCOs in Mombasa County. International Journal of Advanced Research and Review, 5(5), 35-49.
Handoyo, S., Mulyani, S., Ghani, E. K., & Soedarsono, S. (2023). Firm characteristics, business environment, strategic orientation, and performance. Administrative Sciences, 13(3), 74.
Jepkosgei, E. (2022). Determinants Of Dividend Decisions And The Performance Of Deposit Taking Saccos In North Rift Counties, Kenya (Doctoral Dissertation, Mmust).
Mathafena, R. B., & Msimango-Galawe, J. (2023). Entrepreneurial orientation, market orientation and opportunity exploitation in driving business performance: moderating effect of interfunctional coordination. Journal of Entrepreneurship in Emerging Economies, 15(3), 538-565.
Nagy, S. G., & Navarro, M. (2025). Integration (NAFTA/USMCA). The Economics of Regional Integration, 169.
Ndegwa, M. W., & Koori, J. (2019). Financial inclusion and performance of deposit taking savings and credit cooperative societies in Meru County, Kenya. International Academic Journal of Economics and Finance, 3(4), 286-307.
Njera, M. (2023). Product Differentiation and Performance at Tier 3 Deposit Taking Saccos in Kenya (Doctoral dissertation, University of Nairobi).
Nyangarika, A., & Bundala, F. S. (2020). Socio-economic factors affecting deposits growth in sacco’s development case of geita tanzania. International Journal of Advance Research and Innovative Ideas in Education, 6(2), 1273-1288.
Oktari, R. S., Munadi, K., Idroes, R., & Sofyan, H. (2020). Knowledge management practices in disaster management: Systematic review. International Journal of Disaster Risk Reduction, 51, 101881.
Pasara, M. T., Makochekanwa, A., & Dunga, S. H. (2021). The Role of Savings and Credit Cooperatives (SACCOs) on Financial Inclusion in Zimbabwe. Eurasian Journal of Business and Management, 9(1), 47-60.
Pinto, J. (2019). Key to effective SACCOs performance management lies at the intersection of paradox theory and stakeholder theory. International Journal of Management Reviews, 21(2), 185-208.
Protogerou, A., Kontolaimou, A., & Caloghirou, Y. (2022). Creative industries and resilience in times of crisis: the role of firm and entrepreneurial team characteristics. International Journal of Entrepreneurial Behavior & Research, 28(4), 1075-1105.
Pryshlakivsky, J., & Searcy, C. (2021). Life Cycle Assessment as a decision-making tool: Practitioner and managerial considerations. Journal of Cleaner Production, 309, 127344.
Purnama, I., & Yani, F. (2023). Business Income, Operational Costs, and Production Costs on Net Profit After Tax at PT Unilever Indonesia Tbk Period 2016-2021. Luxury: Landscape of Business Administration, 1(1), 23-32.
Rizova, M. I., Wong, T. C., & Ijomah, W. (2020). A systematic review of decision-making in remanufacturing. Computers & Industrial Engineering, 147, 106681.
Sahi, G. K., Gupta, M. C., & Cheng, T. C. E. (2020). The effects of strategic orientation on operational ambidexterity: A study of indian SMEs in the industry 4.0 era. International Journal of Production Economics, 220, 107395.
Shah, S. Z. A., & Ahmad, M. (2019). Entrepreneurial orientation and performance of small and medium-sized enterprises: Mediating effects of differentiation strategy. Competitiveness Review: An International Business Journal, 29(5), 551-572.
Stadelmann, M. (2025). The CRM Competence Model: The Basis of Consistently Customer-Oriented Company Design. In CRM Goes Digital: Design and Use of Digital Customer Interface in Marketing, Sales and Service (pp. 3-22). Wiesbaden: Springer Fachmedien Wiesbaden.
Wallace, C. K., & Kilika, J. (2021). Strategic innovations and competitiveness of saccos in South Imenti Sub-county, Meru County. International Academic Journal of Innovation, Leadership and Entrepreneurship, 2 (2), 93, 117, 2.
Wang, T., Lin, X., & Sheng, F. (2022). Digital leadership and exploratory innovation: From the dual perspectives of strategic orientation and organizational culture. Frontiers in Psychology, 13, 902693.
Yang, M. G., Roh, J. J., & Kang, M. (2021). The role of strategic environmental orientation in environmental design practices. Management Decision, 59(2), 341-357.
Yitayaw, M. K. (2021). Determinants of profitability and financial SACCOs performance of saving and credit cooperatives in Eastern Ethiopia. International Journal of Rural Management, 17(2), 239-261.
Zangiacomi, A., Pessot, E., Fornasiero, R., Bertetti, M., & Sacco, M. (2020). Moving towards digitalization: a multiple case study in manufacturing. Production Planning & Control, 31(2-3), 143-157.
DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3235
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.