IMPACT OF SOCIAL MEDIA USAGE ON ORGANIZATIONAL PERFORMANCE OF SACCOS IN KENYA (A CASE STUDY OF KUSCCO SACCO AFFLIATES)

Alice Wakuthii Koori (), Mr. Simon Muriithi () and Mr. James Mbebe ()

European Journal of Business and Strategic Management, 2018, vol. 3, issue 6, 27 - 51

Abstract: Purpose: The purpose of this study was to establish the impact of social media usage on organizational performance. Methodology: This study was based on descriptive research design. Technical staff particularly CEOs and IT officers were issued using semi-with structured questionnaires as a main tool with closed and open-ended questions. The target population was 100 Saccos affiliated with Kuscco within Nairobi region and a sample of 132 respondents was selected using simple random sampling technique in which a researcher selects participants /particular group or category from the population to constitute the sample. The researcher used descriptive statistics whereby tabular, graphical and numeral representations will be used. Results: The results of the study indicated that social media communication usage, knowledge sharing, information search and social media advertisement are positively and significantly related with organizational performance of Saccos. Social media communication usage, knowledge sharing, information search and social media advertisement were found to be satisfactory variables in explaining organizational performance of Saccos. This is supported by coefficient of determination also known as the R square of 62.5%. Further, the results imply that the independent variables are good predictors of organizational performance of Saccos. This was supported by an F statistic of 40.418 and the reported p value (0.000) which was less than the conventional 0.05 significance level. Unique contribution to theory, practice and policy: The study provides an in depth analysis of social media usage and its impact among organizations. The findings showed that organizations mainly use Facebook and Twitter for their business, followed by blogs and YouTube. The organizations use social media for various purposes, such as to search for information about their market, customers and competitors. The results of this study can be used as a guide for those organizations that are currently using social media at a minimal level, as these organizations can use it for a wider range of purposes, as suggested by the research findings, and also by those organizations that plan to use social media in the future.

Keywords: Social Media Usage; Organizational Performance; Saccos (search for similar items in EconPapers)
Date: 2018
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