Technology and Innovation Systems and Performance of Microfinance Institutions in Kisii County, Kenya

Microfinance banks face numerous challenges, including fierce competition driven by regulatory changes, macroeconomic influences, and technological advancements, which had heightened competitive dynamics. It was from this background that the study explored the impact of competitive strategy on business performance, aiming to contribute to a deeper understanding of the intricate relationship between strategy and success. The study was sought to evaluate the effect of technology and innovation systems on performance of microfinance institutions in Kisii County. This method involved in-depth data collection and analysis to describe the characteristics of the given population. The target population consisted of all heads and employees of microfinance institutions, comprising 180 respondents. Since the study sample was small, a census sampling technique was used to include the entire population in the study. Questionnaires were used to collect data from staff below the rank of the head of department. Prior to the commencement of data collection, the researcher applied for an introduction letter from the School of Graduate Studies of Jomo Kenyatta University of Agriculture and Technology Ethics Review Committee to obtain a research permit from the National Commission for Science, Technology, and Innovation (NACOSTI). A multiple regression model was used to analyze the data. The study findings revealed that technology is significant positive predictors to performance of microfinance institutions in Kisii County, Kenya. The study concluded that strategic competitive advantage is a significant positive predictor of performance of micro finance institutions in Kisii County, Kenya. The study recommends that the financial institutions should invest in robust mobile banking infrastructure to ensure seamless, secure, and efficient services.