| dc.description.abstract | Microfinance institutions play a vital role in financial inclusion, providing access to
credit, savings, insurance, and other financial services to low-income individuals and
marginalized communities. This study investigated the influence of strategy
implementation on the performance of Microfinance institutions (MFIs) in Machakos
County, Kenya. Specifically, this study set out to examine the influence of resource
allocation, strategy communication, organizational structure and organizational culture
on performance of microfinance institutions in Machakos County. The study was
guided by the resource-based view theory, managerialism theory, contingency theory
and theory of organizational excellence. An explanatory research design was chosen
for the study. Closed-ended structured questionnaires were administered by the
researcher on the respondents to collect data. The target population was 63
microfinance staff in Machakos County. Thus, the MFIs formed the unit of analysis.
The target population for this study comprised the staff in the microfinance branch
offices in Machakos County. A pilot test on 6 respondents randomly selected from the
target population was conducted to offer preliminary data for the selection of a
probability sample and identifying any weaknesses in the research design and
instrumentation. The questionnaires were administered physically on drop and pick
basis. The collected data was analyzed using SPSS version 26. Multiple regression
analysis was carried out to establish the nature and magnitude of the relationship
between resource allocation, strategy communication, organizational structure
organizational culture and MFIs performance. The findings were presented using
tables, graphs and bar charts. The findings showed that effective resource allocation
and a strong organizational culture had a positive correlation with firm performance.
The study found that resource allocation ((β = 0.382, p value = 0.000), strategy
communication (β = 0.247, p value = 0.000) and organizational culture (β = 0.330, p
value = 0.000) had a statistically significant positive impact on firm performance.
However, organizational structure (β = -0.343, p value = 0.000) had a negative
significant effect on performance of MFIs. The study concluded that efficient resource
allocation strategies in enhancing firm performance, strategic communication is a
critical determinant of firm performance, an overly rigid or bureaucratic organizational
structure can impede adaptability and responsiveness to market dynamics and
organizational culture is a powerful driver of firm performance within microfinance
institutions in Machakos County. The study recommended that policymakers and
microfinance institutions (MFIs) should prioritize developing clear guidelines and
frameworks for efficient resource allocation, establish structured communication
channels that ensure strategic goals are effectively communicated across all levels of
the organization and MFIs should consider adopting more flexible organizational
structures that align with their operational and strategic needs. The study suggested that
future studies should focus on the influence of regulatory changes, economic
conditions, and market competition on organizational strategies and performance
outcomes. | en_US |
