Effect of Innovation on Performance of Deposit Taking Saccos in Kenya

Abstract

In a business environment that’s highly competitive firms should have the ability to cater for technological changes, customers demand and also global competition. Thus innovation becomes vital for firms operating continuously in a dynamic and uncertain environment. It is imperative for leaders to promote innovation. Ideally when a firm engages in innovation it improves performance. The study intended to ascertain the effect of innovation on performance of Deposit Taking SACCO’s in Kenya. The study was guided by positivism research philosophy and used descriptive correlational research design. Primary data was collected using close ended questionnaires and an interview schedule targeting 126 senior managers and 42 CEO’s of Deposit Taking SACCO’s in Kenya. Census technique was employed. The study population comprised of all 42 Deposit Taking SACCO’s operating in Nairobi County, Kenya. Purposive sampling was employed to select the CEO’s and senior managers of Deposit Taking SACCO’s. Further simple random technique was employed in selecting 12 CEO’s who were to be interviewed. For analysis the study adopted descriptive statistics, inferential statistics as well as content analysis. The study confirmed that innovation had a positive and significant effect on the performance of Deposit Taking SACCO’s in Kenya. The study therefore recommends that Innovation should be embraced by DTS and specifically product, market and technological innovation as they enhance performance.