community-specific, agency-specific, programme-specific and environment-specific factors.Resource centrality (importance of the resource as a means of survival), resource scarcity (quantity of the resource/resource products/resource benefits available vis-a-vis the local demand), ownership of the resource(s), gestation (waiting time involved) and uncertainty about availability of the resource/benefits, location of the resource, divisibility of the resource/resource products, and feasibility of exclusion of free riders from sharing the benefits from the resource are the major resource-specific factors affecting people's participation (Korten, 1983).A number of socio-cultural characteristics including beliefs and values of the community affect their participation in SACCO programmes. The most important community- specific factors determining people's participation and membership include socio-economic structures for instance Homogeneity and heterogeneity of a community in terms of caste, class, ethnicity, assets, income, etc., (CIRDAP1984). Values and beliefs that are rooted in its culture, tradition, and history, inculcate attitude and behaviour and as such influence membership (Korten, 1983). Awareness of locals is conceded as another factor that influences membership either for or against the SACCO.Mishra et al.,(1984), recognizes the SACCO-specific factors affecting membership21
which include; their structures, systems, norms, and personnel policies. The most important is that the locus of decision-making should be centrally placed with the members for the purposes of securing and sustaining membership. Devolution of Financial and Administrative Power is another factor which enhances people’s participation and ownership. Lastly, Attitudes, Values and Skills of SACCO Personnel and personnel policies can also make or break membership depending on the perceptions conceived by members upon interaction with personnel.22
2.11 Conceptual FrameworkFigure 3 below shows the independent, moderating and dependent variables and how they relate with each other.Moderating VariableFigure 2 Conceptual FrameworkThis research study considers SACCO governance, education and training, membership base and market risk as independent variables. Governance is the system by which a SACCO is directed, controlled and held to account for the manner in which power is exercised in the stewardship of its assets and resources to increase and sustain shareholder value and satisfy the needs and interests of all stakeholders (Mudibo, 2005). Education is a great requirement in the running of the SACCO societies to abate against23
the negative developments that can hinder SACCO performance due to lack of information. Market risk on the other hand gives an indication of the level of Sacco’s safety. It comprises of inflation, credit risk and interest rate risk. Finally membership base is important since it forms the platform on which the SACCOs mobilize funds and savings. It affects the performance by means of its size and portfolio.
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- Summer '16
- mr. Akuno
- The Land, Cooperative, SACCOs