INFLUENCE OF STRATEGIC PLAN IMPLEMENTATION ON PERFORMANCE OF SAVING AND CREDIT COOPERATIVE SOCIETIES IN NAIROBI COUNTY, KENYA

Abstract

The Business environment is dynamic and changing rapidly, and organizations need to employ effective strategic Implementation planning to remain competitive and sustainable. Despite the strategic plans put in place, most SACCOs in Kenya haven't successfully executed them, a problem that has exposed their performance. The study was purposed to assess the impact of strategic plan implementation on the performance of SA CCOs in Nairobi County, Kenya, in terms of mission formulation, goal alignment, and resource allocation. The study employed a descriptive cross-sectional research design. All 46 licensed deposit-taking SACCOs in Nairobi County were targeted as the population in 2024 (SASRA, 2024). Yamane's Formula was used to obtain a sample of 84 individuals from the total population of 34. The research also employed stratified random sampling, where the sample size was allocated proportionally to the strata.The study measured content validity using Cronbach's Alpha. The research gathered quantitative data. The Statistical Package for the Social Sciences (SPSS) was employed to analyze quantitative data. The results of the structured questions were assessed using both descriptive and inferential statistics. The statistical analysis, presented as percentages and frequency tables, was provided. The correlation and regression analysis were part of inferential statistics. The correlation analysis was employed to establish whether the relationship between variables is positive and statistically significant at the generally accepted conventional considerable level of p value below 0.05; the results indicated that the relationship between SACCO performance and mission formulation (r = 0.790), goal alignment (r = 0.805), resource allocation (r = 0.756), and strategic control (r = 0.854) is positive and statistically significant. But the regression analysis showed that mission formulation (β = 0.67, p = 0.037), resource allocation (β = 0.25, p = 0.00), and strategic control (β = 0.484, p < 0.00) were the only significant predictors of SACCO performance. Goal alignment was strongly correlated with performance; however, the regression coefficient (β = 0.043, p = 0.65) was low, suggesting an indirect or secondary impact. The findings revealed that the chosen strategic management variables accounted for 8.7% of the variation in SACCO performance (R² = 0.87), indicating strong explanatory power. The research suggests that SACCO managers should prioritize a well-formulated mission to enhance competitiveness and attract investment. Effective performance requires the strategic use of financial, human, and technological resources. Management must introduce periodic monitoring of corrective actions. Goal alignment did not appear to have a significant influence on performance; however, it is essential to organizational coherence, which can be strengthened through better communication. The value of this work to theory and practice in the strategic management of the financial cooperative sector lies in its potential to provide essential insights into how SACCOs can enhance the execution of strategic plans to achieve higher performance.