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INFLUENCE OF STRATEGY IMPLEMENTATION ON COMPETITIVENESS OF MICRO-FINANCE INSTITUTIONS IN KENYA
Irene Choge Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Dr. Jared Deya, PhD JKUAT, Kenya This e-mail address is being protected from spambots. You need JavaScript enabled to view it
CITATION: Choge, I. & Deya, J. (2018). Influence Of Strategy Implementation On Competitiveness Of Micro-Finance Institutions In Kenya. International Journal of Strategic Management. Vol. 8 (1) pp 16 – 27. ABSTRACT
Despite the over-emphasized introduction of new strategies, firms are still recording minimal performance and competition rate. This therefore raises the question on whether these firms implement the intended strategies or not. On the other hand, Micro Finance Institutions (MFIs) have continually faced tremendous challenges despite their vital role in the country’s economy. These firms face high range of competition from already established financial institutions such as the commercial banks. The strategies introduced by these firms have however not bared much fruits since their competitiveness still remains minimal. It is against this backdrop that the study sought to establish the influence of strategy implementation on the competitiveness of MFIs in Kenya. Specifically, the study sought to find out the influence of resources allocation, roles and responsibilities, leadership styles and organizational structure on the competitiveness of MFIs in Kenya. The study employed descriptive research design and targeted all the 48 MFIs in Kenya. A census was used whereby all the 48 MFIs were included in the study. Purposive sampling was used to identify 5 employees from each of the MFI (human resource, procurement, accounting, marketing and finance managers) giving a total of 240 respondents as the sample size. Self-structured questionnaire was used to collect data for the study. The data was anlaysed by mixed method where both qualitative and quantitative data was analysed. Quantitative data was analysed by use of inferential and descriptive statistics while qualitative data was analysed by use of content analysis. The data was presented in form of tables, pie-charts and bar-graphs. The findings from the study revealed that allocation of resources, roles and responsibilities, leadership styles and organizational structure had a significant influence on the competitiveness of MFIs in Kenya. The study concluded that through adequate resource allocation and ensuring roles are properly assigned enhanced competitiveness. The study recommended that there should be proper leadership styles where the employees are involved in decision making hence contributing to their productivity which is essential in attaining competitiveness.
Keywords: Strategy Implementation, Resource Allocation, Roles and Responsibilities, Leadership Style, Organizational Structure and Firm Competitiveness.
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