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Differentiation and benchmarking as competitive strategies: An analysis of organisational performance of savings and credit cooperative societies in Kenya

Author

Listed:
  • Hannah Wangumo Njangiru

    (Kenyatta University)

  • Chris Simon Kipkorir Sitienei

    (Kenyatta University)

Abstract

Savings and Credit Cooperative Societies (SACCOs) are essential in reducing poverty, wealth creation, and development. However, they have been faced with declining organizational performance characterized by low market share, inability to satisfy customers and low employee productivity. In the current study, the aim was to establish the effect of differentiation and benchmarking strategies on organizational performance of SACCOs in Nairobi City county, Kenya. The study was anchored on balanced scorecard model, diffusion of innovation theory, Porters and general theory of competitive strategies. The target population was forty-nine SACCOs in Nairobi City County, Kenya that were registered with Sacco Societies Regulatory Authority. The target respondents were one operations manager, one finance manager, one administration manager, and one human resource manager from each of the 49 Savings and credit cooperative Societies. A census was used, and primary data was collected using an open and closed ended questionnaire. The validity of research instrument was determined by experts and pilot study. Alpha Cronbach method was used to ascertain the reliability of research instrument and threshold was 0.7. Data was analysed utilizing descriptive and inferential statistics especially mean, standard deviation and multiple regression with the aid of statistical package for social sciences. Tables were utilized to present the data. The researchers upheld research ethics. The results revealed that differentiation strategy had a negative and insignificant effect contrary to much established theory on organizational performance, while benchmarking strategy had a positive and significant effect. The study recommends that management of SACCOs should improve operational efficiency and competitiveness in the market. The study is meant to benefit policy makers, management of Savings and Credit Cooperative Societies, Sacco Society Regulatory Authority, government, academicians and researchers. The findings are additional literature to existing body of knowledge.

Suggested Citation

  • Hannah Wangumo Njangiru & Chris Simon Kipkorir Sitienei, 2025. "Differentiation and benchmarking as competitive strategies: An analysis of organisational performance of savings and credit cooperative societies in Kenya," International Journal of Business and Management (IJBM), International Emerging Scholars Society (IESS), New Zealand, vol. 4(2), pages 173-195, September.
    • Handle: RePEc:cwd:ijbmnz:v:4:y:2025:i:2:p:173-195
    DOI: 10.56879/ijbm.v4i2.164
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    References listed on IDEAS

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