Date of Conferral
Doctor of Business Administration (D.B.A.)
Kevin J. Davies
Nonbank financial institutions (NBFIs), of which credit unions comprise, constitute an important part of the financial sector because of their contribution to economic development, particularly in developing economies. This multiple case study explored strategies for maintaining credit union profitability against the backdrop of numerous closures in the past decade. The conceptual framework for this study was agency theory. Data were collected from 6 purposefully selected managers or directors representing individual credit unions in Grenada. Data were also collected from publicly available sources and used to conduct methodological triangulation. The interview data were coded using a computer-aided software package, and the interpretations of the data subjected to member checking. The emergent themes from both sources were then aggregated into 6 major strategies for maintaining credit union profitability, namely credit risk management, portfolio growth and development, operational efficiency, advertising and promotion, performance metrics, and strategy review. Agency problems exist in the credit union environment and influence the strategies leaders of credit unions in Grenada employ to maintain profitability. Findings from this study represent a corollary against the participants' position that agency theory is not applicable in the credit union environment because of the existence of the common bond. Implications for social change include safeguarding the financial wellbeing of credit union members by contributing to the soundness of Grenada's NBFIs. This is social implication is an important consideration given the mission of the credit union sector to serving the disenfranchised and to the growth and stability of developing economies.