Undoing performance in micro finance institutions: Reflections on regulatory framework in Kenya

Artikel

The performance of Micro Finance Institutions (MFIs) has been affected negatively by the current hypercompetitive economic environment which has beencharacterised by as unfair competition. Huge losses have been reported among MFIs in Kenya, this has forced MFIs to innovate differently; product, financial, organisational or market innovation. This has not yielded better results. The study sought to establish the moderating effect of the regulatory framework on the relationship between strategic innovation orientation and performance of MFIs using the case of Kenya. The indicators for the regulatory framework were; prudential guidelines, non-prudential guidelines, and government laws. A descriptive and explanatory research design was adopted as the research design with a target population of 13 MFIs from which a sample of 352 respondents was obtained using a proportionate stratified and simple random sampling technique. Both financial and non-financial measures of performance were collected and analysed using mutiple regression. The regulatory framework was found to have a moderating effect on the relationship between strategic innovation orientation and performance. The findings established that regulatory framework had a moderating effect on the relationship between strategic innovation orientation and performance of MFIs. This informs the importance of regulation and control by regulatory bodies and the government.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: The Journal of Entrepreneurial Finance (JEF) ; ISSN: 1551-9570 ; Volume: 24 ; Year: 2022 ; Issue: 2 ; Pages: 1-13 ; Los Angeles, CA: The Academy of Entrepreneurial Finance (AEF)

Klassifikation und Themen

• Klassifikation: Management
• Thema: Strategic innovation orientation ; regulatory framework ; Micro Finance Institutions and Performance

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Muithya, Victor Mwendwa ; Muathe, Stephen ; Kinyua, Godfrey
• Ereignis: Veröffentlichung
• (wer): The Academy of Entrepreneurial Finance (AEF)
• (wo): Los Angeles, CA
• (wann): 2022

Weitere Informationen

• Handle: http://hdl.handle.net/10419/264421
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ