Influence of Operational Transformation on Firm Performance Among DT-SACCOs in Meru County, Kenya

Abstract

The study purpose was to examine the influence of operational transformation on firm performance among DT-SACCOs in Meru County, Kenya. The study used a descriptive research design when collecting data from a target population of 10 registered deposit-taking SACCOs. The respondents were 10 branch managers, 10 operations managers, 52 operations staff, 106 marketing staff, and 38 customer care staff. This study obtained 10 branch managers and 10 operations managers through the purposive sampling method, while 46 operations, 84 marketing, and 35 customer care staff were sampled through the simple random method. The interviews were conducted with branch managers and operations managers, while the structured questionnaires were answered by the other respondents. The pre-test was done in Unison DT-SACCO in Isiolo County. The study measured reliability using the Cronbach Alpha Coefficient, while validity was measured using face, content, and construct types of validity. Descriptive statistics such as frequency, percentage, mean, and standard deviation were analyzed. There were also inferential statistics, such as Pearson correlation, model summary, ANOVA, and regression coefficients, analyzed. Qualitative data were derived from the interview responses through the thematic method. The presentation was done through tables. The study found out that operational transformation had a significant influence on firm performance. It was enhanced by clarity in communicating goals on time, teamwork, and training on relevant staff. The factors made it easier to restructure operations more effectively, leading to an all-around transformation. Despite the existence of risk management, adequacy of finances, and operational efficiency policies, the decision-making approach in DT SACCOs was centralized, hence relying on top management to make decisions affecting the banking operations. This led to decline in efficiency in expediting the necessary operations within the shortest timeframe to improve customer satisfaction. The study recommends empowering lower management levels through decentralized authority, improving staff communication on sector changes, strengthening cybersecurity measures, and enhancing ICT recruitment and infrastructure. Additionally, fostering a customer-centric culture and improving internal harmony could significantly boost performance outcomes.