Influence of internal organizational factors on the performance of microfinance banks in Nairobi, Kenya
Date
2022
Authors
Mwiti, Phylis Muthoni
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The business environment today is highly volatile due to the constant changes in technology and intensive competition. Consequently, it has become highly difficult to align entities to rigid forms of optimizing performance. Today, businesses need to innovate with the internal factors constantly to maintain the required level of performance. The aim of this study was to determine the influence of the internal organizational factors to the performance of microfinance banks in Kenya. The study entailed a theoretical review of literature, which help in discussing the primary models and frameworks supporting the research. The study used a descriptive design to collect data. The study censured all the 15 MFBs in Kenya and through judgmental sampling design selected eight employees from each of the departments that were deemed to have the relevant information for the research. A structured questionnaire was used to obtain data from the respondents. Data was analyzed through descriptive and inferential statistical analysis method that involved the use of the statistical package for social sciences (SPSS) and Excel data sheets. Data was presented using tables, charts and bar graphs. The study established that all the internal organization factors; human resource, organization culture, organization structure and organization policy have a significant effect on the Microfinance Banks in Nairobi. The study recommended that the Microfinance Banks should develop strategies that can help them in adapting to the changing business environment and ensure that they remain as competitive as ever. While the individual MFB branch offices have the autonomy to make decisions, there is need for effective monitoring structures that can ensure that the decisions made at branch levels do not affect the overall goal and the image of the MFBs in the country; there is need for the Microfinance Banks to develop effective orientation program especially for the new employees that join the MFBs across the country; the policy developed by MFBs should provide a clear guideline on what need to be covered during the orientation programs; there is need for regular review of organizational polices in the MFBs in order to ensure that operational policies at different departments are aligned to the organization goals and objectives; and that the organization does not hold on to old policies that do not respond to the ever-changing business environment both locally and internationally.
Description
A Dissertation submitted in partial fulfilment for the award of a Master of Commerce Degree at Strathmore University
Keywords
Microfinance banks_Nairobi, Kenya, Performance, Business environment, Internal organizational factors