Resource Allocation and Performance of Microfinance Institutions in Machakos County, Kenya
Abstract
This research study sought to determine the impact of resource allocation on the performance of MFIs in Machakos County. The study adopted a descriptive research design. The target population for the study included 63 staff members from the 21 registered MFIs in the county. The study utilized a purposive sampling technique in an effort to identify the most suited respondents for the study. A structured questionnaire was utilized as the data collection tool. The questionnaire was divided into two parts containing the demographic data relating to the respondent's background as part one and the second part covering resource allocation. The questionnaire was structured with a 5-point Likert scale. Descriptive and Inferential statistics were used in the analysis of the data. The linear regression analysis method was used to assess the associations between resource allocation and performance. The study established that resource allocation positively influenced the performance of MFIs in Machakos County. The study concluded that the manner in which resources are allocated significantly affects the performance of microfinance institutions in Machakos County. The study recommends that policymakers and microfinance institution (MFI) leaders should prioritize developing clear guidelines and frameworks for efficient resource allocation
Downloads
References
Adeyemi, O., & Olayinka, A. (2022). The impact of capital allocation on the performance of microfinance institutions in developing economies. Journal of Financial Services Research, 61(2), 203-220. https://doi.org/10.1007/s10693-021-00360-1
Association of Microfinance Institutions of Kenya (AMFI-K). (2022). Annual report on the status of microfinance institutions in Kenya. AMFI- K Publication. https://www.amfik.org/publications
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99- 120. https://doi.org/10.1177/014920639101700108
Karanja, G., & Mwangi, E. (2021). Challenges and opportunities for microfinance institutions in semi-arid regions: A case of Machakos County, Kenya. African Journal of Business Management, 15(3), 72-82. https://doi.org/10.5897/AJBM2021.9277
Kimani, J., & Wanjiku, S. (2020). The role of technological innovation in enhancing the performance of microfinance institutions in Kenya. Journal of Financial Innovation, 8(2), 56- 72. https://doi.org/10.1016/j.jfi.2020.04.002
Muriithi, P., & Wachira, M. (2021). Resource allocation and its effect on the sustainability of microfinance institutions in Kenya. Journal of Development and Economic Sustainability, 9(2), 35-47. https://doi.org/10.1234/jdes.2021.9203
Mwangi, R., & Njenga, K. (2019). The impact of regulatory frameworks on resource allocation in Kenyan MFIs. Journal of Financial Regulation, 5(3), 45-60. https://doi.org/10.1093/jfr/frm005
Mwiti, J., & Kariuki, S. (2020). The role of staff training in enhancing the performance of microfinance institutions in Kenya. International Journal of Finance & Banking Studies, 9(1), 45-58. https://doi.org/10.20525/ijfbs.v9i1.689
Nguyen, H. (2020). Strategic resource allocation and microfinance institution performance: Evidence from emerging markets. Journal of Financial Economics, 58(1), 100-115. https://doi.org/10.1016/j.jfineco.2020.01.004
Njuguna, C., & Gachanja, P. (2022). Strategic resource allocation and its impact on the sustainability of microfinance institutions in Kenya. International Journal of Microfinance, 10(1), 101-118. https://doi.org/10.1177/17557380221002412
Ochieng, P. (2023). Digital transformation and microfinance: Improving service delivery in Kenya. Journal of Emerging Financial Markets, 11(4), 311-330. https://doi.org/10.1016/j.jefm.2022.09.007
Omondi, J., & Kinyua, T. (2023). Resource allocation strategies and their effect on microfinance institutions' performance: A case study of Machakos County. Journal of African Finance, 15(2), 112-129. https://doi.org/10.1016/j.jaf.2023.02.001
Peteraf, M. A., & Barney, J. B. (2003). Unraveling the resource-based tangle. Managerial and Decision Economics, 24(4), 309-323. https://doi.org/10.1002/mde.1126
Waweru, L., & Mwangi, M. (2021). Aligning resource allocation with strategic objectives in microfinance institutions: Evidence from Kenya. Journal of Strategic Management, 14(4), 67-83. https://doi.org/10.1108/jsm-2021-0123
Copyright (c) 2024 Alex Kimani, Robert Arasa, PhD, James Karau, PhD
This work is licensed under a Creative Commons Attribution 4.0 International License.
