Assessment of the Effect of Cost Leadership Strategies on Organizational Performance of Deposit Taking Saccos in Meru County
DOI:
https://doi.org/10.54536/ajebi.v3i2.2930Keywords:
Cost Leadership, Resource Based Theory, StrategiesAbstract
A recent study conducted in Meru County, Kenya, aimed to investigate the impact of cost leadership strategies on the performance of deposit-taking Savings and Credit Cooperative Societies (SACCOs). The study, which was based on insights from resource-based theory, utilized a descriptive survey design targeting 96 top management personnel across 12 active deposit-taking SACCOs in the region. Primary data for the study was collected through questionnaires distributed to CEOs, accountants, credit managers, marketing managers, and executive board members of the selected SACCOs. Secondary data, on the other hand, was sourced from the yearly financial statements and other reports of these SACCOs. Both primary and secondary data were analyzed using correlation and regression analysis, alongside descriptive and inferential statistics. The findings of the study highlighted the significant impact of cost leadership strategies on the performance of SACCOs in Meru County. These strategies collectively explained a substantial portion (76.30%) of the variations in SACCOs’ performance. Specifically, an increased adoption of the cost leadership strategy resulted in notable performance improvements. In light of these findings, the study recommended initiatives aimed at enhancing capacity building within SACCOs and fostering greater stakeholder engagement to facilitate their growth and overall performance.
Downloads
References
Barney, J. B., & Arikan, A. M. (2005). The resource‐based view: Origins and implications. In H. W. Lane, M. A. Hitt, & J. E. Smith (Eds.), The Blackwell handbook of strategic management (pp. 123-182). Blackwell Publishing.
Barney, J. B., & Clark, D. N. (2007). Resource-based theory: Creating and sustaining competitive advantage. Oxford University Press.
Barney, J., Wright, M., & Ketchen Jr, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625-641. https://doi.org/10.1177/014920630102700601
Bebe, N. (2019). Analyzing the role of cost leadership in enhancing SME performance in central Nakuru, Kenya. (Doctoral dissertation, MUA).
Datta, B. (2015). Assessing the effectiveness of authentic leadership. International Journal of Leadership Studies, 9(1), 62-75.
Dohale, V., & Verma, P. (2022). A historical overview of manufacturing strategies from 1969 to 2021. International Journal of Production Research, 60(2), 569-594. https://doi.org/10.1080/00207543.2021.2005800
Draper, N. R., Smith, H., & Pownell, E. (1966). Applied regression analysis, vol. 3. John Wiley & Sons, Inc., New York, NY. Retrieved from Google Scholar.
Duran, C., & Akci, Y. (2015). Impact of competitive strategies and supply chain strategies on firm performance under environmental uncertainties. International Journal of Economics, Commerce and Management, 3(1), 1-33.
Gamba, P., & Komo, I. (2014). Evolution, growth and decline of the cooperative sector. Paper prepared for the Centre for Governance and Development. Retrieved from [URL or Database Name if available]
Guo, X., Wang, Y., Hou, Y., Zhou, Z., Sun, R., Qin, T., ... & Cai, X. (2022). Genome-wide dissection of the genetic basis for drought tolerance in Gossypium hirsutum L. races. Frontiers in Plant Science, 13, 876095. https://doi.org/10.3389/fpls.2022.876095
Helfat, C. E., & Peteraf, M. A. (2015). Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), 831-850. https://doi.org/10.1002/smj.2288
Hosseini, S. S., & Ghazali, M. Z. (2014). The mediating effect of TQM practice on cost leadership strategy and improvement of project management performance. In 5th International Graduate Conference on Engineering Science & Humanity (pp. 19-21).
Ilyas, G. B., & Mustafa, H. (2022). Price, promotion, and supporting facilities on customer satisfaction. Golden Ratio of Marketing and Applied Psychology of Business, 2(1), 01-11.
Long, J. S., & Ervin, L. H. (2000). Using heteroscedasticity consistent standard errors in the linear regression model. The American Statistician, 54(3), 217-224. https://doi.org/10.1080/00031305.2000.10474549
Magali, J. J. (2014). Evaluating the effectiveness of loan management in rural Tanzanian SACCOS. Business and Economic Research, 4(1), 299.
Mwangi, E. W., & Ombui, K. (2013). Effects of competitive strategies on the performance of mission hospitals in Kenya (A case of Kijabe Mission Hospital). International Journal of Science and Research (IJSR), 2(11), 14-19.
NgugiNkuru, F. (2015). Growth factors of agricultural sector SACCOs: A study of Meru Farmers SACCO in Kenya. International Journal of Finance & Policy Analysis, 7.
Omayio, L. (2017). Investigating competitive strategies in the telecommunications industry in Kenya. (Doctoral dissertation, University of Nairobi).
Razali, N. M., & Wah, Y. B. (2011). Power comparisons of Shapiro-Wilk, Kolmogorov-Smirnov, Lilliefors, and Anderson-Darling tests. Journal of Statistical Modeling and Analytics, 2(1), 21-33.
Ruttoh, J. K. (2015). An analysis of factors affecting the growth of cooperative societies in Nandi Central District, Kenya. (Doctoral dissertation).
Seber, G. A., & Lee, A. J. (2012). Linear regression analysis. John Wiley & Sons.
Sebhatu, K. T. (2015). Development, challenges, and interventions for Ethiopian savings and credit cooperatives. International Journal of Cooperative Studies, 4(1), 1-8.
Sharma, A., & Rastogi, S. (2021). Examining the link between efficiency and voluntary disclosure among non-banking financial companies. Journal of Risk and Financial Management, 14(7), 289. https://doi.org/10.3390/jrfm14070289
Shilimi, M. C. (2019). Challenges impacting the integration of savings and credit cooperative societies in Zambia. (Doctoral dissertation, Swiss Business School).
Solomon, E. (2022). The socioeconomic impact of SACCO participation on members in Awach, Ethiopia. (Doctoral dissertation, St. Mary’s University).
Tukamuhebwa, M., Ongeti, W., & Muriuki, N. (2022). The impact of global cooperative principles on leadership in Kampala City’s SACCOs. International Journal of Managerial Studies and Research, 10(4), 1-14.
Yakubu, S. M., & Mohammed, A. I. (2018). Strategies enhancing Islamic microfinance acceptability in Nigeria. Journal of Economics and Finance, 9(6), 71-76.
Yaşar, F. (2019). A case study on competitive strategies in Gaziantep’s carpet industry. Mustafa Kemal University Social Sciences Institute Journal, 7(14), 309-324.
Yasin, N. M. (2015). Compliance with anti-money laundering laws: Lessons for Malaysian banks from the UK. Journal of Banking Regulation, 16(4), 326-344.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Ronny Gitobu Gikunda, Christine Jeptoo Sawe
This work is licensed under a Creative Commons Attribution 4.0 International License.
