STRATEGIC MANAGEMENT PRACTICES AND SOCIAL SUSTAINABILITY OF MICROFINANCE INSTITUTIONS IN KITUI COUNTY, KENYA

Abstract

This study examined how strategic management practices influenced the social sustainability of microfinance institutions in Kitui County, Kenya. Specifically, the study focused on the influence of strategic planning, strategy implementation, and strategy evaluation on social sustainability of the MFIs. The study was anchored on the Triple Bottom Line Theory. A descriptive survey research design was adopted. The target population were 5 Microfinance Institutions (MFIs) and 150 leaders. A census method was used to select all the leaders and MFIs to form the sample size. Questionnaires were used in the collection of primary data. Quantitative analysis was applied with the help of the Statistical Package for Social Services version 24. The data was described using percentages and displayed using tables, pie charts, and figures. Multiple regression analysis was employed to determine the relationship between social sustainability of MFIs and strategic management practices. From the findings, strategic management practices addressed 39.2% of the social sustainability of MFIs in Kitui County. Moreover, strategic planning (b=.617, p<0.05), strategy implementation (b=.819, p<0.05) and strategy evaluation (b=.254, p<0.05) had a positive and significant influence on the social sustainability of MFIs in Kitui County, Kenya. It was concluded that the indicators of strategic management practices examined had a statistically significant influence on the social sustainability of MFIs in Kitui County, Kenya. This study recommends that the management of the MFIs in Kitui County should dedicate more time and resources in strategic planning and implementation. The management of the MFIs should ensure that their employees are conversant with the overall strategic vision/Mission, goals and Objectives of the MFI’s.