TECHNOLOGY ADOPTION STRATEGIES AND PERFORMANCE OF DEPOSIT TAKING SACCOS IN NAIROBI CITY COUNTY, KENYA

Lucy Kangangi, Dr. Robert Mang’ana

Abstract


The general objectives of the study was to evaluate the effect of technology adoption strategies and performance of deposit taking Saccos in Nairobi City County. The study was guided by the following specific objectives: to establish the effect of financial information system on performance of deposit taking Saccos in Nairobi City County; to determine the effect of communication technologies and performance of deposit taking Saccos in Nairobi City County; The study targeted 42 deposits taking Saccos (DTSs) in Nairobi City County licensed by SASRA at end of 2023.The study employed self-administered structured questionnaires as the tool for data collection. The study carried out a pilot test to assess the validity and reliability of the questionnaires in gathering the data required for purposes of the study. Quantitative data was analyzed using descriptive and inferential statistics was computed by use of Statistical Package for Social Sciences (SPSS) version 20.0. A total of 126 questionnaires were sent to the targeted 126 senior management, middle level management and low-level management from 42 deposits taking Saccos) in Nairobi City County licensed by SASRA; from which 103 questionnaires were returned completely filled, depicting a response rate of 81.7% which is good for generalizability of the research findings to a wider population. Both descriptive and inferential statistics showed that the study’s conceptualized independent variables (financial information system, communication technologies) have a significant effect on performance of DT-Saccos in Nairobi City County (dependent variable). The study concluded that financial information system can greatly enhance the operational efficiency, customer service, and strategic capabilities of deposit-taking Saccos, driving superior performance. Secondly, effective communication technologies enhance the operational efficiency, member engagement, and overall performance of deposit-taking Saccos by improving service delivery, facilitating real-time interactions, and providing valuable insights for decision-making. The study recommends that first, for deposit taking Saccos to realize superior performance, they should adopt an effective financial information system that can greatly enhance operational efficiency and customer service delivery. Secondly, the information communication technology department of deposit taking Saccos should roll out an upgraded and secure communication system that offers seamless addresses customer needs, engagements and complaints resolutions.

Key Words: Technology Adoption Strategies, Performance of Deposit Taking Saccos, Financial Information System, Communication Technologies

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