EXPLORING THE INFLUENCE OF STRATEGIC PARTNERSHIPS ON SUSTAINABLE COMPETITIVE ADVANTAGE IN DT-SACCOS IN NAIROBI COUNTY, KENYA
Abstract
Purpose of Study: This study sought to establish the influence of strategic partnerships on sustainable competitive advantage, in DT SACCOs, Nairobi County, Kenya.
Problem Statement: Savings and Credit Cooperative Societies (SACCO) plays an important role in alleviation of poverty through financial inclusion of low-income earners. The Kenyan SACCOs gained a lot of relevance in 1990s when the banking sector faced a crisis and started closing down some rural area banks. As reported by Sacco Societies Regulatory Board (SASRA), the industry, achieved a tremendous growth of 7.02% in membership and a 10.31% growth in asset base in financial year 2022. Additionally, the industry also recorded growth of 11.76% in loan portfolio during the same year. This growth has resulted to fierce competition not only among the SACCO sector but also other industry players including commercial banks and microfinance banks. Dynamic capabilities theory guided the study.
Methodology: The study was guided by descriptive survey research design and the population was 46 SASRA registered DT-SACCOs in Nairobi County. The study respondents comprised of 230 mid-level management managers in 46 DT-SACCOs in Nairobi County. The study used census survey method. Additionally, the study used semi-structured questionnaires while inferential and descriptive analysis was used for quantitative data analysis.
Result: The findings revealed that strategic partnership had a positive and significant effect on sustainable competitive advantage (β = 0.934, p = 0.000 < 0.05).
Conclusion: The study concludes that strategic partnerships are instrumental in enhancing the sustainable competitive advantage of DT-SACCOs.
Recommendation: Policymakers should create a supportive regulatory framework that encourages the adoption of advanced technologies in the financial sector. Regulations should be adaptive to technological changes and provide clear guidelines on the use of mobile banking, internet banking, and other fintech solutions.
Keywords: Strategic Partnerships, Sustainable Competitive Advantage, DT-SACCOs, Nairobi County, Organizational Strategy
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