Determinants of a Corporate Image among Savings and Credit Cooperative Societies in Kilifi County- A Case Study of Imarika Savings and Credit Cooperative Society

Abstract

Corporate image is an allusive asset within the corporate world and therefore it is a drive for the organizations to search continually for new methods for improving esteem and standing. Corporate image indicates the extent to which stakeholders perceive a firm as being able to meet their needs by providing greater value than that of competitors. The intangibility nature of corporate image compromised its significance in the past; but in the contemporary business environment, it has proved to be a fundamental element that contributes strongly towards the overall wellbeing of an organization. Organizations including SACCOs have been in a continuous struggle to attain a favourable corporate image, but only a few truly understand what it entails or how to achieve and keep it. Many studies have shown that there is a positive relationship between corporate image and organizational performance, but less effort has been put to establish what actually determines this image. SACCOs are member owned organizations that pool together resources in order to provide financial support to the same members. For SACCOs to remain relevant therefore, the issue of image should not be overlooked. This case study aimed at assessing the determinants of corporate image among SACCOs in Kilifi County. Theoretical and empirical literature explored herein indicates that a relationship exists between the reviewed determinants and the desired corporate image. These determinants include but not limited to customer service; technological prowess; participation in CSR and organizational systems. This case study was descriptive in nature and it was conducted using member respondents from four branches of Imarika Sacco. Participants were drawn from the BOSA category. Stratified random sampling technique was used to draw participants proportionally from the branches, hereby referred to as the strata. Using confidence and interval levels of 95% and 0.05% respectively, Slovin formula was used to determine the study sample and in this case, 390 participants were involved, however, the response rate was 94% (367). Data was collected from primary sources using structured questionnaires with open and close ended questions with a five scale Linkert questionnaire format. Data analysis was done using a statistical package for social scientists (SPSS). Demographic section shows that there were 237 and 130 male and female respondents respectively. Most respondents were within the age bracket of 40 to 55, and a majority (250) having been members for over 6 years. The quantitative data findings show that; customer service is the strongest determinant of corporate image; followed by organizational systems. Technological prowess and organizational participation in CSR respectively followed with less weight. Qualitative data revealed that the Sacco image is perceived to be good, satisfactory, stable, fair or impressive. Respondents also expressed their opinions on what they like most. Staff attributes emerged to be a virtue that attracts members. However, given the opportunity to highlight on areas that needed improvements, results show that operational issues were highlighted as highly wanting. Generally, the results show that customer service plays a major role in determining a corporate image relative to the other determinants, while Organizational systems followed with a reasonable magnitude. Nevertheless, all the four variables having a positive relationship with corporate image among Saccos, it can confidently be concluded that corporate image is a function of customer service, organizational systems, technology and participation in CSR. However, having realized that customer service is a stronghold of corporate image; it is hereby recommended that Saccos should continually search on new ways to enhance it. Secondly, more resources should be channeled to areas related to Philanthropy in CSR and Innovation through Technology in order to beef up the overall image of Saccos. Further studies should also be done to critically look into operational areas that may dent corporate image among Saccos.