Strategic Human Capital: The Antecedent for Superior Performance of Deposit Taking SACCOs in Kiambu County, Kenya

Abstract

Savings and Credit Cooperatives often struggle to keep pace with the rapid changing technological advancement and stiff competition from larger financial institutions like commercial banks. The way in which Deposit Taking, savings and Credit Cooperatives (SACCOs) and financial institutions utilize strategic resources defines their competitive advantage and performance. This study investigated the influence of strategic human resources on performance of deposit taking SACCOs in Kiambu County. The study was hinged on resource-based view theory. Descriptive survey research design was adopted. The target population was 227 management staff consisting of 26 top level, 67 middle level, and 134 lower-level management staff in Kiambu County. Stratified sampling technique was used to select a sample of 14 top level, 36 middle level, and 71 lower-level management staff. Primary data for the study was collected using a semi-structured questionnaire. Drop and pick method was adopted in administering the questionnaire. Face and content validity of the research coefficient. A coefficient of 0.7 or above was considered adequate in the study. R2 was used to measure the predictive power of the model, while F-statistic was used to determine the fitness of the model. The significance of the study variables in influencing performance of SACCOs was based on the p-values of each variable at 0.05 significance level. Results of the study indicated that strategic human resources were deployed to a moderate extent. Further, a positive correlation existed between performance of DTS and strategic human resources. Strategic human resources predicted performance of DTS in Kiambu County (p<0.05). The study therefore concluded that strategic human resources have significant influence on performance of DTS in Kiambu County. The study recommends that the management of DTS should emphasize on acquiring and optimally utilizing strategic resources since they significantly influence their performance.