Marketing Innovation and Performance of Savings and Credit Cooperative Societies in Nairobi City County, Kenya

Abstract

Savings and Credit Cooperatives (SACCOs) in Kenya are instrumental in Gross domestic product (GDP) growth and uplifting the livelihoods of the people through job creation, poverty eradication by enhancing financial inclusion. Despite having a huge potential for growth SACCOs in Nairobi City County have witnessed a decline in performance. While most of the SACCOs in Nairobi City County have started adopting various innovations, it is apparent from the performance that they are yet to harness well on these marketing innovation strategies to improve their performance. The general objective of this study will be to establish the effect of marketing innovation on performance of SACCOs in Nairobi City County. This study will be anchored on Schumpeter theory of innovation, dynamic capability theory and resource based view theory. Descriptive research design will be adopted with a population of 177 SACCOs in Nairobi City County. The study will adopt a census technique and the respondents will be 177 chief executive officers in the SACCOs. Data will be collected using a closed-ended questionnaire and will be analyzed using descriptive and inferential statistics with the aid of Statistical Package of Social Sciences version 28.0. Cronbach’s alpha will be used to test reliability. Construct validity will be tested using regression analysis. The content validity will be done through research supervisors who will check if the research instrument captures all the relevant aspects to answer the research questions. The pilot study will involve 18 respondents from 18 SACCOs in Kiambu County which constitute ten percent of the targeted managers Simple and multiple regression analysis will be done to establish the relationship between variables. Correlation analysis will be used to test the strength of the relationship between variables. Data will be presented using tables and figures. T-test and F- test will be used to test hypothesis at 5% significance level. The study results indicate that marketing innovation has a positive and significant effect on performance and therefore, SACCOs should adopt innovative marketing strategies that enhance visibility, attract new members, and strengthen member loyalty. This study is expected to add value to the policy makers within the SACCOs sector such as SASRA in coming up with policies that promote marketing innovations. Academicians can utilize findings from studies on SACCO’s innovation to inform policymakers about the challenges and opportunities faced by these organizations.