The Influence of innovations on SACCOs Financial Performance in Mbeya Region - Tanzania

Abstract

Similar to other sub-Saharan African countries, most of Tanzania's Savings and Credit Cooperative Societies (SACCOS) have not performed well financially. These democratic self-help groups are having financial difficulties. Therefore, it was crucial that this study look at the connection between Mbeya SACCOS financial success and innovation in Tanzania. Out of the 105 SACCOS that are registered and operational in the Mbeya region, 83 were chosen at random to serve as the study's sample. The study used positivist philosophy and a logical method to create hypotheses from the Social Innovation Theory. The data was analyzed using structural equation modeling. The study came to the conclusion that, social innovation conceptual claim is correct, there is a substantial positive association between innovation and SACCO’s financial performance. The Social Innovation Hypothesis still needs more empirical research in a variety of international economic sectors to support its claims.

Keywords: SACCOS: Innovation; Product innovation; Marketing innovation; Process innovation; organization innovation