CORPORATE GOVERNANCE PRACTICES, TECHNOLOGICAL RESOURCES AND PERFORMANCE OF DEPOSIT TAKING SACCOS IN SOUTH RIFT REGION, KENYA

Abstract

This study investigates the influence of corporate governance practices and technological resources on the performance of Deposit-Taking SACCOs (DT-SACCOs) in the South Rift Region of Kenya, based on the OECD Guidelines for Corporate Governance of State Owned Enterprises. These guidelines provide international benchmarks for best practices which are vital for the SACCO sector in Kenya. The research examines how board competence, shareholder involvement and accountability impact SACCO performance and assesses the moderating role of technological resources in these relationships. A descriptive survey research design was employed, targeting all ten DT-SACCOs in the region with a population of 96 respondents. The study employed Census method and data was collected was using structured questionnaires. The validity and reliability of the instruments were ensured using content and construct validity and Cronbach’s alpha coefficient with a pilot study conducted in Nandi County. Data was analysed using SPSS version 23, applying both descriptive statistics (percentages, frequencies, means and standard deviations) and inferential statistics (Pearson correlation, simple linear regression, multiple regression and hierarchical regression analysis).The results show that board competence (B=2.001, p=0.001) and accountability (B=1.529, p=0.000) all have significant positive effects on the performance of DT-SACCOs while shareholder involvement (B=0.965, p=1.109) was insignificant, with accountability showing the strongest influence. Technological resources were found to moderate these relationships, enhancing the positive effects of board competence, shareholder involvement and accountability on performance. Specifically, the interaction of technological resources with board competence, shareholder involvement and accountability though not statistically significant, further amplified their positive influence on SACCO performance. The general model accounted 50.8 percent of the variance on SACCO performance. The findings will be informative to the shareholders, policymakers and researchers in terms of comprehending the challenge of governance and devising ways to capitalize on the technology to enhance the performance of SACCO.