Effect of Optimization Strategies on Performance of Savings and Credit Cooperative Societies in Uganda: Evidence from Butuuro Peoples Sacco Bushenyi-Ishaka Municipality
Tumuhimbise Peter1, Andrew Nyakundi2 and Tom Ongesa3
1Department of Business Administration, Kampala International University, Uganda
2MBA Student, Kampala International University, Uganda
3 Lecturer, Department of Computing, Kampala International University, Uganda
ABSTRACT
Savings and credit Cooperative Societies (SACCOs) play vital role in economic development of Uganda. The government has initiated some programmes aimed at fostering performance of SACCOs. Despite these efforts, most of SACCOs are grappling with low performance. The objectives of the study were to: determine effect of product diversification strategy, technology adoption strategy and financial literacy strategy on performance of SACCOs. The study was anchored on Dynamic Capability Theory and guided by conceptual framework. Descriptive research design and quantitative research approach were adopted. Target population was 180 with a sample of 124 and respondents were selected using simple random sampling. Questionnaire was used in data collection which was analyzed using multiple linear regression technique with help of SPSS. The findings revealed that both product diversification strategy and technology adoption strategy effects were statistically insignificant on performance of SACCOs(t=-.0321,P=0.673,P>.05;t=1.140,P=0.252,><.05).However,financial literacy strategy had significant effect on performance of SACCOs(t=4.281,P=0.000,P<.05).The study concluded that both product diversification strategy and technology adoption strategy have no statistical significant effect on performance while financial literacy strategy does. Recommendations include continual innovations on products and technology, development of policy framework and encouraging entrepreneurial trainings. The findings will benefit policymakers, management of SACCOs, academia and rural community.
Keywords: Product diversification strategy, technology adoption strategy, financial literacy strategy, performance, SACCOs.
CITE AS: Tumuhimbise Peter, Andrew Nyakundi and Tom Ongesa (2026). Effect of Optimization Strategies on Performance of Savings and Credit Cooperative Societies in Uganda: Evidence from Butuuro Peoples Sacco Bushenyi-Ishaka Municipality. INOSR ARTS AND MANAGEMENT 12(1):35-45. https://doi.org/10.59298/INOSRAM/2026/121.3545