Human Resources and Performance of Deposit-Taking Savings and Credit Cooperative Societies in Kirinyaga County, Kenya
Keywords:
SACCOs, organizational performance, resources
Abstract
Deposit-taking savings and credit cooperative societies (SACCOs) in Kirinyaga County face several challenges, including low profitability, high retrenchment rates, and slow adoption of new technologies, which hinder their financial stability and operational efficiency. This study investigates how human resources affect SACCO performance while drawing on resource-based theory. A descriptive research design was employed, utilizing both qualitative and quantitative data collection methods. Semi-structured questionnaires were administered to SACCO managers and employees, while secondary data was sourced from financial reports. A sample of ten SACCOs in Kirinyaga County was analyzed using statistical techniques to assess the relationship between organizational resources and performance. The findings reveal that whereas human capital, particularly well-trained staff, is the most significant factor in enhancing SACCO performance, its impact is comparatively lower. The study concludes that strategic investment in human capital is essential for improving SACCO performance. It recommends prioritizing staff training and development to maintain competitiveness. These insights provide a roadmap for SACCOs to enhance efficiency, sustain growth, and improve their role in economic development.
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References
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2. Bakri, S. (2017). Strategic allocation of resources and sustainable competitive advantages. Advanced Research Journal, 5(3), 237-241.
3. Bamel, K.U. & Bamel, N (2018). Relationship between organizational resources and strategic flexibility. Management Journal, 22(7), 1555-1572.
4. Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Executive, 9, 49-61.
5. Baryamureeba, V. (2014). Role of technology on enhancing service delivery in Rwanda based SACCOs. Journal of Entrepreneurship in Emerging Economies, 8(17); 210-236.
6. Black, A. J. & Boal, B. K. (2010). Strategic resource allocation and firm’s competitive advantages. Journal of Strategic Management, 15(2), 131-148.
7. Cania, L. (2014). The impact of strategic human resource management on organisational performance. Economic Serial Management, 17(2), 373-383.
8. Chigozie, P.M., Aga, C. C., & Onyia, E. (2018). Human capital development and performance of manufacturing firms in Nigeria. Economic Journal, 7(3), 60–78.
9. Chuang, H., Liu, M. & Chen, Y. (2015). Effect of human resources on customers satisfaction. International Journal, 12, 23-39.
10. Colbert, B.A. (2014). Relationship between RBV theory and strategic management. Management Review Journal, 29(3), 341–358.
11. Gakenia N. J. (2015). Organizational resources and performance of mobile phone companies in Kenya. Unpublished PhD Thesis Kenyatta University.
12. Hoq, M. Z., & Chauhan, A. A. (2011). Effects of organizational resources on organizational performance: An empirical study of SMEs. Interdisciplinary Journal of Contemporary Research in Business, 2, 373-385.
13. Hotice, C. (2012). The effluence of intrinsic and extrinsic rewards on employee results: An empirical analysis in Turkish manufacturing industry. Faculty of Economics and Administrative Sciences in its Journal, 3, 54-67.
14. Kaplan, R. & Norton, D. (1992). The balanced scorecard—measures that drive performance. Harvard Business Review, 79.
15. Karanja, W. E., Muraguri, C. and Kinyua, G. (2018). Effects of teamwork on performance of the Water Service Regulatory Board. The Strategic Journal of Business Change & Management, 5(3), 1-6.
16. Liamputtong, P. (Ed.). (2019). Handbook of research methods in health social sciences. Singapore: Springer Nature.
17. Lindlof, T. R., & Taylor, B. C. (2017). Qualitative communication research methods. California: Sage publications.
18. Mathuva, M. D. Muthuma, W. E. & Kiweu, M. J. (2016). Effect of branding on performance of SACCOs in Kenya. Management Journal, 39(10), 1265–1292.
19. Meichang, O., Wenzhong, Z., & Dan, L. (2017). Application of human capital theory among firms in China. Education Journal, 10(1), 18–25.
20. Mohamed, A. I. & Bett, S. (2018). Strategic resources and performance of commercial banks in Kenya: Case of Equity Bank Limited. International Academic Journal of Human Resource and Business Administration, 3(3), 218-242
21. Morrison, M., & Roese, N. J. (2011). Regrets of the typical American: Findings from a nationally representative sample. Social Psychological and Personality Science, 2(6), 576-583. https://doi.org/10.1177/1948550611401756
22. Moura, I. S., & Lengler, J. (2010). The impact of financial resources on the export performance: The case of Portuguese exporting firms. Anon.
23. Muriuki, M. (2016). Factors affecting performance of SACCOs in Meru County, Kenya. Retrieved from http://erepository.uonbi.ac.ke/
24. Muthui, A. N. (2013). Effects of information and communication technology (ICT) on corporate strategy (A survey of SACCOs in Nyeri County). Masters Project, Kenyatta University 66.
25. Ndiege, B. O., Haule, T. B., & Kazungu, I. (2013). Relationship between sources of funds and outreach in savings and credits cooperatives societies: Tanzanian case. European Journal of Business and Management, 5(9).
26. Ngugi, S. M. (2014). Challenges facing deposit taking Savings and Credit Cooperatives’ compliance with the SACCO Societies’ Act Number 14 (2008) in Nyeri county. Masters Project, Dedan Kimathi University of Technology.
27. Njuguna, E. W. (2015). Effect of front office service activity on the performance of savings and credit co-operative societies in Kenya: A study of selected SACCOs in Nairobi. Strategic Journal of Business & Change Management, 2(1), 11-20.
28. Nyberg, A. J., Moliterno, T. P., Hale, D. & Lepak, D. (2014). Resource-based perspectives on unit-level human capital: A review and integration. Journal of Management, 40: 316-346.
29. Raduan, R., Haslinda, A. & Alimin I. (2011). A review on relationship between organizational resources and performance. A Journal of Social Science Research, 3, 490- 550.
30. Ruivo, P., Oliveira, T., & Neto, M. (2015). Application of RBV theory in assessing the value of ERP in SMEs. Industrial Journal, 73, 105–116.
31. Sijtsma, K. (2009). On the use, the misuse, and the very limited usefulness of Cronbach’s alpha. Psychometrika, 74, 107–120. doi: 10.1007/s11336-008-9101-0
32. Talaja, A. (2012). Testing VRIN framework: resource value and rareness as sources of competitive advantage and above average performance. Management, 17(2), 51-64.
33. Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource. New Jersey: John Wiley & Sons.
34. Unger, J., Rauch, A., Frees, M., &Rosebush, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341-358.
Published
2025-06-20
How to Cite
Murage, N. W., & Waithaka, P. (2025). Human Resources and Performance of Deposit-Taking Savings and Credit Cooperative Societies in Kirinyaga County, Kenya. European Scientific Journal, ESJ, 42, 267. Retrieved from https://eujournal.org/index.php/esj/article/view/19654
Section
ESI Preprints
Copyright (c) 2025 Nancy Waithira Murage, Paul Waithaka
This work is licensed under a Creative Commons Attribution 4.0 International License.
