Assessing the Influence of Market Competition on the Growth of Deposit-Taking Savings and Credit Cooperative Societies in Meru County

Abstract

The study sought to assess the influence of market competition on the growth of deposit-taking Savings and Credit Cooperative Societies in Meru County. A mixed-method approach using both quantitative and qualitative data was employed. Data were gathered from 10 DT-SACCO headquarters in Meru County through a descriptive survey design. Respondents included 10 purposively sampled branch managers and 170 randomly sampled officers. Data collection methods included interviews, questionnaires, and secondary financial reports. Validity and reliability were assessed using various methods, including Cronbach’s alpha. SPSS version 27 was used for both descriptive and inferential statistical analysis. Data collected through questionnaires established that the management had consciously worked to make sure that DT-SACCOs were known as customer-focused to provide products and services effectively. To be able to accomplish this, the institutions employed qualified professionals with expertise in cost management, which encouraged the effective use of resources. However, the study found that staff members were not included in the decision-making process. Interview replies indicated that marketing campaigns, joint ventures with other corporations to boost sales, and cost leadership were the kinds of market competitiveness tactics used in DT-SACCOs. At a 99% significance level and α < 0.001, the market competition correlation coefficient value was r = r=0.609. This showed that market competition had a moderately high influence on growth. The coefficient for market competition is 0.490 with a significance value of 0.01. Therefore, the model was Y = 19.601 + 0.490X1 + 3.063e. Notably, without the inclusion of the market competition, the growth of DT-SACCOs would be 19.601. The outcome noted from the findings recommends the need for the management to develop policies to emphasize on how staff can be included in making decisions to improve their commitment level to the organization and take advantage of market competition. If there are policies that encourage staff involvement in decision-making, it will enhance cohesion and effective operations. The study recommends that, in terms of technology adoption, there is a need to give priority to cybersecurity and consistent training in technology, to reduce operational risk exposure. Therefore, the solidification of IT is expected to uphold the reputation of the DT-SACCOs as key financial providers.