INFLUENCE OF COMPETITIVE INTELLIGENCE STRATEGIES ON MARKET GROWTH OF MICROFINANCE INSTITUTIONS IN UASIN GISHU COUNTY, KENYA

Abstract

This study sought to determine the influence of competitive intelligence strategies on business performance of microfinance institutions in Uasin Gishu County in Kenya. The specific objectives were to determine the effect of strategic alliance intelligence, product intelligence, market development intelligence and technology intelligence strategies on market growth of microfinance institutions. The study adopted a cross-sectional survey research design. The study used a sample size of 115 respondents composed of section heads from the 23 MFIs. Primary data was collected using a closed-ended questionnaire that was presented to 10 section heads in MFIs in Nakuru County. Statistical Package for the Social Sciences (SPSS) was used to process and analyze the collected data. Descriptive (means and standard deviation) and inferential statistics (correlation and regression) were used to analyse the data and the results presented on tables. The study established that there was a positive relationship between strategic alliance intelligence strategies (r = 0.531), product intelligence strategies (r = 0.615) and technology intelligence strategies (r = 0.464) .The R² value of 0.638 implies that 63.8% of the variations in market can be explained by the variations in independent variables. The study concluded that the independent variables that is strategic alliance strategies, product intelligence strategies and technology intelligence strategies were all found to positively influence market growth. The study recommends that since strategic alliance intelligence strategies are key in enhancing market growth of MFIs, top management in these MFIs should as a matter of urgency implement and enhance strategic alliances with key partners in order to enhance their growth and ultimately, enhanced performance. Further, they should ensure such strategies are embedded in their planning and budgeting processes so as to enhance their sustainability in the long run.