Balanced scorecard model: Issues to resolve for competitive advantage among SACCOs in Kajiado County, Kenya
Authors: Kingwalor Kelvin Lillan , Muathe Stephen Makau 
Published: December 2024

Savings and Credit Cooperative Societies are important economic institutions that offer credit and other financial services in many developing countries, including Kenya. However, their performance is impacted by several factors, including high competition. The Balanced Scorecard (BSC) serves as a tool of strategic value, enabling organizations harmonize their activities with their strategic goals. In Kenya, despite the significant contributions Savings and Credit Cooperative Societies deliver to economic growth, few studies have examined factors that affect their performance. The goal of this study was to examine the correlation between the perspectives of the Balanced Scorecard and the competitiveness of Savings and Credit Cooperatives located in Kajiado County, Kenya. The specific aims of the study included assessing how the perspectives of the Balanced Scorecard, namely, financial perspective, customer perspective, internal business processes, and learning and growth perspective, affect the competitiveness. of Savings and Credit Cooperative Societies within Kajiado County. This study was anchored on the theoretical frameworks of Balanced Score Card, Resource-Based View and Dynamic Capabilities theory. The study utilized a cross-sectional survey research design, guided by objectivism as an ontological approach, a positivist epistemology, and a deductive approach for data collection and analysis. The study’s target population included the deposit taking Savings and Credit Cooperative Societies in Kajiado County (N= 22). Purposive sampling was employed to identify 22 Savings and Credit Cooperative Societies and 32 personnel members from the 5 main sub counties. Data collection involved the utilization of a structured questionnaire self-administered by the respondents themselves. The data collected was analyzed by the Statistical Package for Social Sciences, encompassing both descriptive and inferential statistical methods. The relationship between distinct independent variables and company competitiveness was analyzed using multiple regression. The critical value for regression was 0.05, and the 95% confidence interval was used. The study found a strong, statistically significant positive correlation between SACCO competitiveness and customer perspective (r = .899, p = .000). Also, a strong, positive, and statistically significant correlation was found to exist between financial perspective and SACCO competitiveness (r = .841, p = .000). A similar strong positive correlation was observed between internal business processes and SACCO competitiveness (r = .805, p = .001). Similarly, learning and growth exhibited a strong, positive correlation with SACCO competitiveness (r = .817, p = .001). Some of the balanced score card perspectives, such as financial and customer perspectives, positively predict SACCO competitiveness. The relationships are also statistically significant. However, internal business process and learning and growth, negatively predict SACCO competitiveness. The relationships are not statistically significant. It was recommended that the management of SACCOs should enhance the customer perspective and the financial perspective to boost competitiveness, while strengthening the other perspectives.