INVESTIGATION OF EFFECTIVENESS OF INFORMATION TECHNOLOGY ON THE OPERATIONS OF THE SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN NAIROBI, KENYA.
DOI:
https://doi.org/10.47604/ijfa.241Keywords:
asset loan management system, liability/saving management system, financial management system, credit cooperative societiesAbstract
Purpose: This study investigated the effectiveness of information technology on the operations of SACCO’s within Nairobi.
Methodology:The study used a descriptive research design. The target population consisted of various Sacco members of Sacco’s in Nairobi County. This study used a multistage sampling technique. The data collection techniques involved document analysis and questionnaires. A pilot study was conducted on 10% (15 respondents) of the study sample size. The questionnaires were self-administered. Data was gathered, coded and recorded into Statistical Package for Social Science (SPSS) program. Through descriptive statistics, the researcher summarized data in a meaningful way by making calculations to determine percentage for the response to satisfactory factors of the respondents and helped analyze profiles of the SACCO.
Results:Based on the findings of the study concluded that; the SACCO members perceived that the effectiveness of ATM system, effectiveness of asset loan management system, effectiveness of liability/saving management system and the effectiveness of financial management system influenced the operations of savings and credit cooperative societies.
Policy recommendation:SACCOs should commit more resources into the adoption and maintenance of information technology systems since they influence their operations positively.SACCOs should increase the number of ATMs since their effectiveness affect their operations positively SACCOs should maintain their asset loan management systems so as to ensure that members can access loans whenever they are in need
Downloads
References
Adedayo, A. & Yusuf, O. R. (2004). Cooperatives and Poverty Alleviation in Rural Settlements of Kwara State, Nigeria. Savanna, 19(2):123- 131.
Ahmad, K. (2008). Bankers’ perception of electronic banking in Pakistan. Journal of internet banking and commerce, 13(1)
Allen, D., &Slavova, M. (2011).Working with activity theory: context, technology, and information behavior. Journal of the American Society for Information Science and Technology, 62(4), 776-788.
Alliance for Financial Inclusion. (2011). Rwanda’s Financial Inclusion Success Story: Umurenge SACCOs, Bringing Smart Policies in Life
Amaoko, A. (2012). The impact of information communication technology (ICT) on banking operations in Ghana. International Journal of Business and Management Tomorrow, 2 (3)
Ansoff, H. I. (2007). Implanting Strategic Management.2nd Ed, New York, Prentice Hall.
Avison, D., Jones, J., Powell, P. & Wilson, D. (2004).Using and validating the strategic alignment model. Journal of Strategic Information Systems 13, 223-246.
Bada, J. (2012). ICT for Business Services: The Case of Ugandan Microfinance Institutions, IJRRAS, 11 (1)
Borg, D., & Gall, R. (2007). Educational research: An introduction. Boston: Pearson Education.
Branch, B. (2005). Kenyan Government Develops First CU Regulation with WOCCU Support. Madison: WI, USA, World Council Of Credit Unions.
Brynjolfsson, E. &Hitt, L. (2006).Computing Productivity: Firm-level Evidence.Review of Economics and Statistics, Vol.85, No.4, pp. 793-808.
Buhalis, D. & Law, R. (2008). Progress in information technology and tourism management: 20 years on and 10 years after the internet – the state of etourism research, Tourism Management, 29 (4):609-23.
Burns, A., & Groove, B. (2003).The Practice of Nursing Research: Conduct, critique & utilization. 4th edition. W. B. Saunders Company.
Bwana, M. &Mwakujonga, J. (2013). Issues in SACCOS Development in Kenya and Tanzania: The Historical and Development Perspectives, Developing Country Studies, 3 (5):114
Carton B.R. (2006). Measuring Organizational Performance: Metrics for Entrepreneurship and Strategic Management Research. Edward Elgar Publishing.
Castells, M. (2008). The Internet Galaxy: Reflections on the Internet, Business and Society, Oxford; New York: Oxford University Press.
Chibba, M. (2009). Financial Inclusion, Poverty Reduction and the Millennium Development Goals, European Journal of Development Research, 213-230. Sinclair S, McHard F , Dobbie L,
Cofie, E.N.K. (2006). Politics of Micro credit Implementation: The Case of Techiman municipal area in Ghana.
Cooperate Bank of Kenya. (2010). Co-operative Movement in Kenya. Nairobi: Cooperate Bank of Kenya
Czarniawska B. (2008). Accounting and gender across times and spaces: An excursion into fiction. Accounting, Organizations and Society. 33(1): 33-47.
Dawson C. (2009). Introduction to Research methods.A practical Guide to Anyone Taking Research project. Oxford: How to Books.
Dhillon, G. (2007). Principles of Information Systems Security: text and cases. NY: firm. (11th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Evans A. C. (2010). Strengthening Credit Unions in Sri Lanka: Research Monograph, World Council Of Credit Unions, Madison:WI, USA.
Frankfort-Nachmias, C., &Nachmias, D. (2008). Research methods in social science. (7thed.).New York: Worth Publishers.
Frawley, T. &Fahy, J. (2006). Revisiting the First-Mover Advantage Theory: A Resource-Based Perspective. Irish Journal of Management, 27 (1) pp. 273- 295
Gibson, R (2009). The Role of Cooperatives in Community Economic Development, RDI Working Paper # 2005-3
Gijselinckx, C. &Develtere, P. (2007). The cooperative trilemma. Cooperatives between market, state and the civil society. Research Paper, CatholisUniveristy, Leuven, Belgium.
Gitau, J. (2013). The effect of information and communication technologies on the competitive advantage of multinational banks in Kenya (Unpublished Thesis). Univesity of Nairobi
Gunga, S. O. (2008). The co-operative Movement in Kenya and its Potential for Enhancement of ICT Livelihoods. University of Nairobi, Kenya.
Henry, H. &Schimmel C. (2011). Cooperatives for People-Centred Rural Development. International Labour Office Rural Policy Briefs.
International Monetary Fund (2007). Kenya: Poverty Reduction Strategy.Annual Progress Report.
Jegatheesan, S., Ganesh, S. & Kumar, P. (2011). Research Study about the Role of Microfinance Institutions in the Development of Entrepreneurs, International Journal of Trade, Economics and Finance, 2 (4)
Kamau, D. (2013). Effects of Technological Innovations on Financial Performance of Commercial Banks in Kenya (Unpublished Thesis). Univesity of Nairobi
Kasomo, D. (2007) Research Methods in Humanities and Education.Eldoret: Zapf Chanchery.
Koellinger, P. (2005). Why IT matters - An empirical study of e-business usage, innovation, and firm performance. DIW Berlin Discussion Paper 495.
Kothari C. R. (2004). Research Methodology Methods and Techniques (2nd revised edition) New Delhi: New Age International publishers.
Kothari, C. R. (2004). Research Methodology Methods and Techniques (2nd ed.). New Delhi, New Age International.
KUSCCO. (2006). The Sacco Family Union Newspaper. Nairobi, Kenya Union of Savings Credit Co-operative Unions [KUSCO].
Laudon, K., &Laudon, J. (2010).Management information systems: Managing the digital Firm 11Ed. Peason Education, Inc. Prentice Hall, Upper Saddle River, New Jersey.
Leung, R. & Law, R. (2007). Information technology publications in leading tourism journals: a study of 1985-2004, Information Technology & Tourism, 9 (2):133-44.
Lipsey, R.G., & Chrystal, K.A., (2009). An Introduction to Positive Economics, 8th Edition. Oxford: Oxford University Press.
Loughlin, D. &Wehrheim, M. (2003). An Observation Analysis of e-service quality in in Online Banking.Journal of Financial Services Marketing, 13 (2):164-178.
Mahr, F. (2010). Aligning Information Technology, Organization, and Strategy: Effects on Firm Performance. Springer publications.ISBN 3834989401.
Maina, D. &Murungi, M. (2004). Cooperative Management in Developing Countries, Mansfield Management Services Ltd., Nairobi.
Mallery, M. (2009). Using SPSS for windows step by step: a simple guide and reference. Allyn& Bacon, Boston, MA
Mbugua, Z. (2009). Society in the Making: The Study of Technology as a Tool for Sociological Analysis, The social construction of technological systems: New directions in the sociology and history of technology: 83-103.
Melville, N., Kraemer, K. L., &Gurbaxani, V. (2004). Information technology and organizational performance: an integrative model of IT business value, MIS Quarterly, 28 (22), 283-322.
Mignerat, M. &Rivard, S. (2009). “Positioning the Institutional Perspective on Information Systems Research,” Journal of Information Technology (24), pp. 369-391.
Mitchell, G.R. (2002). The Changing Agenda for Research Management, Technology Management. Managing Service Quality 12(3): 184-194.
Morufu, O &Taibat, A. (2012). Banker’s perception of electronic banking in Nigeria: A review of post consolidation experience. Research Journal of Finance and Accounting, 3 (2), 1-11
Mugenda, A. G. (2008). Social science Research, Theory and principles, Nairobi: Applied Research Training services.
Mugenda, O. M. &Mugenda, A.G. (2003). Research Methodology. Quantitative and Qualitative Approach. Nairobi. Acts Press.
Mukuye, R. (2004). Micro credit as a tool for women’s empowerment and poverty alleviation in Uganda: The case of Uganda women's finance trust limited (UWFTL) and micro enterprise development (MED-net), Kampala, Uganda.
Munyiri, C. (2006). Study visit on the role of women in development of microfinance in Africa. Digest, 3,(3):1-6.
Ndegwa, H. (2011). Adoption and Utilization of ICTs by Savings and Credit Cooperative Societies in Kenya, (Unpublished Thesis), Moi University, Kenya
Ndegwa, H. (2011).Adoption and Utilization of ICTs by Savings and Credit Cooperative Societies in Kenya: A Case of TharakaNithi Teachers Sacco Society Ltd (Unpublished Thesis). Moi University: Kenya
Ndung’u, G. (2010). Orderly movement. Business Post, 1, 28-30.
Newing, H. (2011). Conducting Research in Conservation: Social Science Methods and Practice. New York: Routledge
Noe, R. A., Hollenbeck J. R., Gerhart B. & Wright P.M. (2006). Gestionedellerisorseumane. ApogeoEditore, Milano.
Nyangosi, R & Dr. J.S Arora. (2009). Emergency of information technology in the Kenyan banking sector: An Empirical study In a Proceeding Conference of Global Business and Management Forum 2009 (GBMF) Jointly Organized by Department of Finance, University of Dhaka, Bangladesh and Global Business and Management Forum, USA on December 22-23.
Ofei, K.A. (2001). Retooling credit unions: The case of credit union association of Ghana. IFLIP Research Paper 01-3. Research Paper, International Labour Organization, University of Ghana, Legon.
Olatokum .W.M. &Igbinedion J.L. (2009).The adoption of Automatic Teller Machine in Nigeria. An Application of the theory of diffusion of innovation. Issues in information science and information technology.
Oluyombo, O. O. (2010). Assessing the Impact of Savings and Credit Cooperatives among Monthly Income Earners. Journal of Research in National Development, 8 (2b): 407-415.
Ombado, G. (2010). Identifying and maximizing SACCO’s potential. ACCOSA Newsletter, 2(2), 2-6.
Orodho J.A. (2004). Techniques of Writing Research Proposals and Reports in Education, Masda Publishers.
Page S. (2010). The power of business improvement: 10 simple steps to increase Effectiveness, Efficiency, and Adaptability. American management Assocation. New York.
Priti, J. (2006). Empowering Africa’s development using ICT in a knowledge management approach. The Electronic Library, 24(1), 51-67.
Priti, J. (2006). Empowering Africa's development using ICT in a knowledge management approach, The Electronic Library, 24 (1):51 – 67
Procasur A. (2012). An Overview of Sacco’s in Kenya; In pursuit of ideas to develop Savings and Credit Cooperatives. Learning from Kenyan Sacco’s March 2012, Kenya. http://www.africa.procasur.org
Rehman,H., Moazzam, A. & Ansari, N. (2015).Role of Microfinance Institutions in Women Empowerment: A Case Study of Akhuwat, Pakistan, A Research Journal of South Asian Studies, 30(1):107–125
Republic of Kenya. (2008b). The SACCO Societies Act, 2008. Nairobi: Government Printer.
Riley J. (2012). Information Communication Technology, types of information system. http://www.tutor2u.net/business/ict/intro_information_system_types.htm
Yegon, P. (2012). The impact of information technology investments on organizational performance at Kenya Commercial Bank group Ltd (Unpublished Thesis). Univesity of Nairobi
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
