Strategic Direction and Firm Performance: Evidence from the SACCO Secto

Abstract

Purpose: Strategic direction setting is a critical leadership practice to be adopted by organizations that intend to attain good performance. This study sought to examine the influence of strategic direction on Sacco performance. Design/Methodology: The study utilized descriptive and correlational research design. The study was conducted in SACCOs in Kenya. Primary data was collected using a close ended questionnaire from SACCOs senior managers and CEOs were also interviewed. For data analysis, the study used descriptive statistics, inferential statistics and content analysis. Findings: The study established that strategic direction setting significantly influenced SACCO performance. Implications/Originality/Value: The findings provide a valuable insight on the importance of strategic direction setting in enhancing performance. This study will guide SACCO leaders to proactively set strategic direction through developing and communicating the vision, mission, goals and objectives as this will boost performance in terms of increased level of customer satisfaction, increase in members, asset base growth and growth in deposit base. The findings can be used as a basis for further research by scholars who are interested in understanding strategic direction in SACCO’s.