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Financial Innovation Practice, Sacco Size And Financial Sustainability Of Deposit Taking Saving And Credit Co-Operatives In Kenya

Author

Listed:
  • MAINA, Justus Nderitu

    (School of Business, Karatina University, Karatina, Kenya.)

  • KIAI, Richard Muthii

    (School of Business, Karatina University, Karatina, Kenya.)

  • KYALO, Teresia Ngina

    (School of Business, Karatina University, Karatina, Kenya.)

Abstract

The study aimed at assessing the moderating effect of SACCO size on the nexus between financial innovation practice and financial sustainability which was anchored on transaction cost innovation theory. The population for the study was the Deposit Taking Saving and Credit Co-operatives in Kenya. The study adopted a philosophical paradigm of positivism and descriptive cross-sectional survey design where the sample size was 119 respondents out of which 113 responded. Emailed questionnaire and data collection sheet were used in data collection. The study found that the process innovation and service innovation are positively related to financial sustainability but not statistically significant. This study concluded that SACCO size is statistically significant in moderating financial innovation practice and financial sustainability of Deposit Taking Saving and Credit Cooperatives in Kenya. The study recommends that Deposit Taking Saving and Credit Co-operatives should continue to invest in new and promising process and service innovation strategies to continue realizing the benefits of financially sustainable enterprise.

Suggested Citation

  • MAINA, Justus Nderitu & KIAI, Richard Muthii & KYALO, Teresia Ngina, 2020. "Financial Innovation Practice, Sacco Size And Financial Sustainability Of Deposit Taking Saving And Credit Co-Operatives In Kenya," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 24(3), pages 51-65, September.
    • Handle: RePEc:vls:finstu:v:24:y:2020:i:3:p:51-65
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    References listed on IDEAS

    as
    1. Girma Jirata Duguma & Jiqin Han, 2018. "Effect of Deposit Mobilization on the Financial Sustainability of Rural Saving and Credit Cooperatives: Evidence from Ethiopia," Sustainability, MDPI, vol. 10(10), pages 1-23, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Process innovation; Service innovation; Financial Self-sufficiency; Total assets Pages: 51-65;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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