Effect of Adaptive Capacity on Innovation Performance among Deposit Taking Savings and Credit Cooperative Organizations in Kenya

Abstract

This study investigates the effect of adaptive capacity on innovation performance among Deposit-Taking Savings and Credit Cooperative Organizations in Kenya. Using Dynamic Capabilities Theory, the study adopted an explanatory research design and focused on a population of 176 DT-SACCOs in Kenya. A total of 366 respondents was selected using simple random sampling from the relevant strata within the sampled DT-SACCOs. Primary data was collected using structured questionnaires. A multiple regression analysis was conducted, revealing that adaptive capacity accounts for 45.5% of the variation in innovation performance, with a significant positive relationship between the two. The study concludes that fostering adaptive capacity within DT-SACCOs is critical for enhancing innovation performance and ensuring their long-term sustainability. The study recommends that DT-SACCOs focus on strengthening their adaptive capacity through continuous training, increase investment in digital technologies, develop flexible strategic plans, and foster collaborations with fintech companies and regulatory bodies.

Keywords:       Adaptive Capacity, Innovation Performance, DT-SACCOs, Strategic Flexibility, Dynamic Capabilities, Financial Inclusion.