A Resource-Based View of Human Capital and Performance in Deposit-Taking Saccos in Kirinyaga County, Kenya
Keywords:
Resource-based, SACCOs, organizational performance, resources, credit
Abstract
Deposit-taking savings and credit cooperative societies (SACCOs) in Kirinyaga County continue to grapple with challenges such as low profitability, high staff turnover, and limited technological adoption, factors that undermine their financial sustainability and operational efficiency. This study applies the Resource-Based View (RBV) to examine the relationship between human capital and the performance of these SACCOs. A descriptive research design was adopted, combining both qualitative and quantitative approaches. Data were collected using semi-structured questionnaires administered to SACCO managers and employees, alongside secondary data from financial reports. Ten SACCOs were purposively selected for analysis, and statistical techniques were employed to assess the influence of internal resources on performance outcomes. The findings indicate that while human capital, particularly well-trained and experienced staff, is recognized as a valuable resource, its practical impact on performance is often constrained by inconsistencies in human resource practices. The study concludes that strategic investment in human capital is essential but must be accompanied by coherent policies in recruitment, training, motivation, and performance management to yield sustainable benefits. By highlighting the centrality of human resources within the RBV framework, the study offers actionable insights for SACCOs seeking to enhance operational efficiency, strengthen competitive advantage, and contribute more effectively to regional 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. doi:10.21474/IJAR01/3507
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(4), 49-61. https://www.scirp.org/reference/referencespapers?referenceid=1216001
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. doi:10.1002/smj.4250151009
7. Cania, L. (2014). The impact of strategic human resource management on organisational performance. Economic Serial Management, 17(2), 373-383. https://econpapers.repec.org/article/romeconmn/v_3a17_3ay_3a2014_3ai_3a2_3ap_3a373-383.htm
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. doi:10.6007/IJAREMS/v7-i3/4378
9. Chuang, H., Liu, M. & Chen, Y. (2015). Effect of human resources on customers satisfaction. International Journal, 12(7), 23-39. https://doi.org/10.1155/2015/835194
10. Colbert, B.A. (2014). Relationship between RBV theory and strategic management. Management Review Journal, 29(3), 341–358. https://doi.org/10.5465/amr.2004.13670987
11. Gakenia N. J. (2015). Organizational resources and performance of mobile phone companies in Kenya. Unpublished PhD Thesis Kenyatta University. http://ir-library.ku.ac.ke/handle/123456789/14301
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(12), 373-385. https://ssrn.com/abstract=1851428
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(3), 54-67. https://ideas.repec.org/a/ris/buecrj/0091.html
14. Kaplan, R. & Norton, D. (1992). The balanced scorecard—measures that drive performance. Harvard Business Review, 79. https://www.researchgate.net/publication/298043780_The_Balanced_Scorecard_measures_that_drive_performance
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. https://www.strategicjournals.com/index.php/journal/article/view/799/796
16. Liamputtong, P. (Ed.). (2019). Handbook of research methods in health social sciences. Singapore: Springer Nature. https://philpapers.org/rec/LIAHOR
17. Lindlof, T. R., & Taylor, B. C. (2017). Qualitative communication research methods. California: Sage publications. https://www.scirp.org/reference/referencespapers?referenceid=2408158
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. doi:10.3390/socsci10100362
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. http://ir-library.ku.ac.ke/handle/123456789/21097
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. http://ir-library.ku.ac.ke/handle/123456789/7146
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), 188-196. https://www.researchgate.net/publication/285632210_Relationship_between_sources_of_funds_and_outreach_in_savings_and_credits_co-operatives_societies_Tanzanian_case
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. http://41.89.227.156:8080/xmlui/handle/123456789/165
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. doi:10.61426/sjbcm.v2i1.108
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(1), 316-346. https://doi.org/10.1177/0149206312458703
29. Raduan, R., Haslinda, A. & Alimin I. (2011). A review on relationship between organizational resources and performance. A Journal of Social Science Research, 3(11), 490- 550. https://www.researchgate.net/publication/42637439_A_Review_on_the_Relationship_between_Organizational_Resources_Competitive_Advantage_and_Performance
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. https://www.researchgate.net/publication/282390982_Using_resource-based_view_theory_to_assess_the_value_of_ERP_commercial-packages_in_SMEs
31. Sijtsma, K. (2009). On the use, the misuse, and the very limited usefulness of Cronbach’s alpha. Psychometrika, 74(1), 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. https://www.researchgate.net/publication/286987559_Testing_VRIN_framework_Resource_value_and_rareness_as_sources_of_competitive_advantage_and_above_average_performance
33. Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource. New Jersey: John Wiley & Sons. https://www.wiley.com/en-us/Introduction+to+Qualitative+Research+Methods%3A+A+Guidebook+and+Resource%2C+4th+Edition-p-9781118767214
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. https://doi.org/10.1016/j.jbusvent.2009.09.004
Published
2025-08-31
How to Cite
Murage, N. W., & Waithaka, P. (2025). A Resource-Based View of Human Capital and Performance in Deposit-Taking Saccos in Kirinyaga County, Kenya. European Scientific Journal, ESJ, 21(22), 102. https://doi.org/10.19044/esj.2025.v21n22p102
Section
ESJ Social Sciences
Copyright (c) 2025 Nancy Waithira Murage, Paul Waithaka
This work is licensed under a Creative Commons Attribution 4.0 International License.
