Title: Determinants of Strategic Change Management in Microfinance Institutions in Tanzania: A Case of Platinum Credit Company
Author: Michael George Njama & Samuel Obino Mokaya
Change occurs in every aspect of human life cycle, since the pre-history up to the modern era of civilization. The need of change and change by itself is not simple process; rather there are always catalysts or forces of change that facilitate and fostering change. Organizations today are increasingly embracing the practice of using change management as a strategy in anticipation that it would translate to an improvement in their goals (Kute & Upadhyay, 2014). This awareness significantly highlights the importance of change management in an organization’s performance. The purpose of the study to examine the determinants of strategic change management in microfinance institutions in Tanzania; using a case of Platinum Credit. The study applied an explanatory research design covering 660 employees of Platinum Credit Tanzania. Saunders et al. (2024), contend that an explanatory research design focuses on understanding the "why" and "how" of a phenomenon by investigating the relationships between variables thus establishing cause-and-effect relationships. Primary data was collected through a semi-structured questionnaires with both closed and open-ended questions. The used inferential statistics such as correlation analysis and multiple regressions to determine and explain the relationship between the independent and dependent variables. Pearson correlation test revealed that all independent variables had a positive relationship with dependent variable. Leadership style had the highest influence followed by employee engagement, and employee attitude respectively. Regression analysis confirmed that a linear combination of all the factors covered significantly contributed to the variance in the dependent variable strategic change management effectiveness. The ANOVA test result also confirmed that, the prediction powers of the factors of strategic change management were statistically significant. From the findings, the study concluded that, the effectiveness of strategic change management in microfinance institutions in Tanzania was determined by all the factors covered in the study with leadership standing out as the most influential. The study recommends that in order to create awareness about strategic change in the minds of the employees, the management should improve its leadership quality. The leaders need to be committed to implement the strategic change effectively, need to be responsible and accountable for implementation of strategic change management and its effectiveness and also the management should understand their employees’ knowledge and skills. Management should ensure that strategic change is well planned and executed in order to achieve their organizational objectives. Further, there should be deliberate programmes to improve employee attitude and engagement through more involvement and demonstrating benefits of the implemented changes to both the employees and the organization.
•ISSN: 2213-1356
•Publisher: Scholar Touch Publishers
•Area/Scope: Business, Economics & Management; Social Science, Literature, Arts & Humanities; Engineering & Technology; Life Science & Physical Science, Health & Medical Science
•Frequency: Monthly
•Format: Online & Print
•Language: English
•Review Process: Double Blinded
•Access: Open Access