STRATEGIC RESILIENCE PRACTICES AND ORGANIZATIONAL PERFORMANCE OF REGULATED SACCOS IN NAIROBI CITY COUNTY, KENYA
STRATEGIC RESILIENCE PRACTICES AND ORGANIZATIONAL PERFORMANCE OF REGULATED SACCOS IN NAIROBI CITY COUNTY, KENYA
Lawrence Aswani Kivayiru - MBA Candidate (Strategic Management), Department of Commerce, School of Business and Economics, Daystar University, Kenya
Charles Katua Kithandi, MBA, MSc, CPA(K) - Lecturer, Department of Commerce, School of Business and Economics, Daystar University, Kenya
ABSTRACT
Regulated Savings and Credit Cooperative Organizations (SACCOs) in Nairobi City County, Kenya, face rising non-performing loans, liquidity pressures, member attrition and intense competition, while empirical evidence on how strategic resilience practices relate to their performance remains fragmented and inconclusive. This study investigated the effect of strategic resilience practices, namely risk management, strategic agility and corporate governance, on the organizational performance of regulated SACCOs in Nairobi City County, and the moderating effect of government regulatory policies on this relationship. The study was anchored on Dynamic Capabilities Theory, supported by the Resource-Based View, the Balanced Scorecard Model and Institutional Theory. A positivist philosophy and a cross-sectional explanatory survey design were adopted. The target population comprised 666 staff in the General Management, Finance, Risk and Governance, Sales and Customer Excellence, and Operations departments of 176 regulated SACCOs, from which 120 respondents were selected through proportionate stratified random sampling; 112 usable questionnaires were returned (93.3%). Data were analyzed using descriptive statistics, Pearson correlation, simple and multiple regression, and hierarchical moderated regression. Risk management (B = 0.291, p = 0.002), strategic agility (B = 0.362, p < 0.001) and corporate governance (B = 0.303, p = 0.005) each had a positive and significant effect on organizational performance, jointly explaining 34.1% of its variance, with strategic agility making the largest contribution (β = 0.316). Government regulatory policies did not significantly moderate the relationship (ΔR² = 0.022, F-change = 1.20, p = 0.313). The study concludes that internal resilience capabilities, rather than the regulatory environment, account for differences in the performance of regulated SACCOs, and recommends that SACCOs deliberately build strategic agility, risk management and corporate governance capabilities beyond regulatory compliance.
