Research Article
Empirical Study on Strategic Management Practices and Financial Performance of SACCOs in a Local Government Context-Uganda
Issue:
Volume 13, Issue 2, June 2025
Pages:
58-69
Received:
24 February 2025
Accepted:
10 March 2025
Published:
26 March 2025
DOI:
10.11648/j.sjbm.20251302.11
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Abstract: Despite the pronounced roles strategy formulation, implementation and monitoring and evaluation have on financial performance of organizations, SACCOs in Fort Portal Tourism City (FPTC) are still battling with choices between long-term and short term strategies. Again even when SACCOs have been proved to contribute significantly to financial inclusion and financial empowerment of the rural masses, SACCOs in Uganda still face several unhealthy financial performance challenges indicated by low levels of return on assets, liquidity, and high portfolio at risk levels. This study was conducted to examine the relationship between Strategic Management Practices and Financial Performance of SACCOs in FPTC. A cross-sectional research design which was quantitative in nature was adopted to investigate the phenomena under consideration. Using a multi-stage sampling 100 respondents were chosen from different employee categories i.e Tellers, Loans Officers, Marketing Officers, Human Resource Managers, Credit Managers and Directors where data was collected using Self-administered questionnaires. Apparently from the respondent profiles males were the majority, with age ranging between 25 and 35, with work experience between 4-6 years having first degrees. Both descriptive and inferential analysis techniques were used to analyze data. The study findings reveal that strategic management practices have a positive and statistically significant relationship with financial performance of the SACCOs in FPTC. By implication SACCOs are advised to; 1) envision strategy formulation as resilience-building process which they should always use as basis for preparing for the future, having to use constituents of their environment as a basis for choice of action/strategy, 2) put measures in place to ensure that initially identified and agreed upon plans and strategies are operational, ensuring that daily activities and tasks have the potential to draw the organization closer to fulfillment of set goals and objectives, 3) understand that setting a strategy is as important as putting in place mechanisms to ensure that a given strategy is achieving what it was intended to achieve. This means that they should institute sufficient control mechanisms as part of their strategy evaluation process, leveraging the power of feedback. Managers should always aim at having in place managerial monitoring tools that enable concurrent assessment of chosen strategies and development of related corrective actions that benefit from assessment of market opportunities, threats and internal strengths and weaknesses.
Abstract: Despite the pronounced roles strategy formulation, implementation and monitoring and evaluation have on financial performance of organizations, SACCOs in Fort Portal Tourism City (FPTC) are still battling with choices between long-term and short term strategies. Again even when SACCOs have been proved to contribute significantly to financial inclus...
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,
Pereez Nimusima
