The concept of corporate governance gained currency in the 1980s. This global phenomenon was necessitated by a widespread financial crisis, stock market crashes and corporate failure of some corporations due to weak governance practices. The purpose of this study was to empirically explore the relationship between Corporate Governance and Performance of Deposit-Taking Savings and Credit Cooperative Society (SACCO) in Kenya as moderated by Digital Innovation. The theoretical foundation of the study was based on resource dependence theory, agency theory, upper echelons theory, stakeholders’ theory and dynamic capabilities. The study was anchored on pragmatic paradigms and guided by descriptive cross-sectional surveys and correlational research designs. A stratified random sampling technique was used. A pilot study, validity and reliability analysis were undertaken. Data was analyzed through descriptive, correlational and inferential statistics. Study findings reveal that the moderating role of digital innovation in the relationship between corporate governance and performance was positive and statistically significant. Moreover, the moderating role of digital innovation is statistically significant in the relationship between corporate governance and performance. And that corporate governance alone cannot influence performance. The study concluded that diverse and experienced boards and management that embrace digital innovation lead to better-governed and well-performing SACCOs. Moreover, SACCOs have no option but to continuously implement digital innovation measures that will keep them ahead of their competitors, maintain good performance in responding to the ever-changing market needs and contribute significantly to economic growth. For future research direction, there is a need to consider other dimensions of corporate governance, introduce other moderating variables in the corporate governance studies and include other financial institutions for a deeper understanding of the nexus between corporate governance and performance.
Author
(s) Details
Dennis
Mucee Ncurai
Jomo Kenyatta University of Agriculture and Technology, Kenya.
Please see the book here:- https://doi.org/10.9734/bpi/nabme/v6/5170
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