STRATEGIC MANAGEMENT CAPABILITIES ON GROWTH OF MICRO-FINANCE INSTITUTIONS IN NAIROBI CITY COUNTY, KENYA
Abstract
This study focused on the effects of strategic management capabilities, including human resource capabilities, and technological capabilities, on the growth of micro-finances in Nairobi, Kenya. It is on this basis the study focused on strategic management capabilities and growth of microfinances in Nairobi County. The study’s objectives were to assess the extent to which human resource capabilities, and technological capabilities affect growth of microfinances banks in Nairobi County. The study used a target population of 744 from all the listed 13 microfinances bank in Nairobi County as the census without as sampling technique. The study used multiple regression analysis to determine the correlation of the variables. The Statistical Package for Social Sciences version 24 was used to run the data. The findings was presented on descriptive statistics (means and standard deviation), figures, frequencies and tables. The study established that all the variables were reliable because it had a coefficient value of 0.7 and above pursuant to Cronbach Alpha threshold requirement. The study found that all the human resource capabilities had overall mean score of 3.945, and technological capabilities 3.910 an indication that the variables had be practiced for the growth in the microfinances banks. The study revealed that strategic management capabilities are positive and significantly correlated with the growth of the microfinances banks in Nairobi County. The study concluded that human resource capabilities, and technological capabilities affects the growth of microfinances in Nairobi County. The study recommended that the microfinance banks management needs to always prioritize effective strategic management capabilities and identify with aid of the strategists experts in order to have conceptualized microfinance growth that has global competitive look and standards. The study recommends that to meet effective growth of microfinances, human resource capabilities should be regarded as the critical element that foreshadow and foster for micro financial growth through its processes (recruitment and selection, training and performance management) strategically. The study recommends that technology is very important in any microfinance bank, however, they is need to have rightful technological infrastructure that adhere and heed to the microfinance trajectory in terms of growth. The study suggests that in total, the model's R2 degree of variance was 0.682. Only 68.2 percent of the study was finished because it was based on a case study, and the researcher therefore recommends that the remaining 31.8 percent be completed by other researchers.[1]
Keywords:
Strategic Management Capabilities
Human Resource Capabilities
Technological Capabilities
Growth Of Micro-Finances
[1] Kirika, I. W., & Odollo, L.O., (2023). Strategic Management Capabilities on Growth of Micro-Finance Institutions in Nairobi City County, Kenya. International Journal of Social Science Management and Entrepreneurship, 7(2023), 438-449
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