Abstract: The aim of this study was to establish the impact of balanced scorecard on the competitiveness of micro-finance institutions in Kenya. The study explored the competitiveness of microfinance institutions in Kenya through the lenses of the four perspectives of the balanced scorecard, that is, internal business processes, financial, growth and learning as well as Customer focus. A descriptive research design was used while the target population comprised of the 48 registered Micro-Finance Institutions in Kenya. The sample size was drawn from the senior management in these Micro-Finance Institutions comprising of finance managers, branch managers, customer relationship managers and operations managers making a total of 192 respondents. A structured questionnaire was used to collect the primary data for the study. The collected primary data was analysed using descriptive and inferential statistics through SPSS. The findings revealed that financial perspective, organizational learning, internal business process and customer focus had a significant influence on the competitiveness of Micro-Finance Institutions in Kenya. It was concluded that through financial perspective, the MFIs would enhance their financial capability to run their operations. Internal business process would enhance the ability of the MFIs to have a smooth efficient operational framework for continued competitiveness. Organizational learning was concluded to be essential in promoting knowledge sharing and ability to solve problems in the MFIs, while customer focus is essential in bringing the customers closer to the MFIs and helping the institutions understand and meet their needs. The study recommended that there is need for the management of the MFIs in Kenya to embrace financial perspective; organizational learning, internal business process and customer focus as balanced scorecard aspects to stir competitiveness.
Keywords: Balanced Scorecard, Firm Competitiveness, Micro-Finance Institutions.
Title: BALANCED SCORE CARD AND COMPETITIVENESS OF MICROFINANCE INSTITUTIONS IN KENYA
Author: ERIC BUNDI GICHOBI, DR. NJERI NJUGUNA
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 10, Issue 1, April 2022 - September 2022
Page No: 111-123
Research Publish Journals
Website: www.researchpublish.com
Published Date: 12-May-2022
