IMPACT OF INSPIRATIONAL MOTIVATION ON STRATEGIC PERFORMANCE IN DEPOSIT-TAKING SACCOS IN NAIROBI CITY COUNTY, KENYA
Abstract
Purpose of the Study: The study aimed to examine the impact of inspirational motivation on the strategic performance of deposit-taking Savings and Credit Cooperative Organizations (SACCOs) in Nairobi City County, Kenya.
Problem Statement: SACCOs in Kenya face mounting competition from commercial banks, microfinance institutions, and mobile money platforms, which threaten their market share, operational efficiency, and profitability. Despite their significant role in financial inclusion, many SACCOs struggle to sustain performance due to limited leadership capacity and lack of visionary motivation among leaders. This study was undertaken to determine how inspirational motivation can enhance strategic performance within this dynamic context.
Methodology: A cross-sectional research design was adopted. Data were collected from a stratified random sample of 169 senior management staff drawn from 42 deposit-taking SACCOs in Nairobi City County. Respondents represented departments such as operations, finance, human resources, marketing, ICT, procurement, and customer service. Data analysis involved the use of descriptive statistics, correlation, and regression analysis to test the relationship between inspirational motivation and strategic performance.
Findings: The study revealed a strong positive effect of inspirational motivation on strategic performance (B = 0.812, t = 12.317, p < 0.001). The model explained 49.6% of the variance in strategic performance (R² = 0.496). The results demonstrated that leaders who articulate a compelling vision and inspire confidence among employees significantly enhance operational efficiency, market growth, and member engagement within SACCOs.
Conclusion: The study concludes that inspirational motivation is a critical determinant of strategic performance in SACCOs. Leaders who motivate teams through shared vision and optimism foster stronger commitment, innovation, and adaptability, which collectively contribute to organizational success and sustainability.
Recommendations: The study recommends that SACCOs invest in structured leadership development programs emphasizing inspirational motivation to strengthen visionary leadership across management levels.
Keywords: Inspirational motivation, strategic performance, deposit-taking SACCOs, transformational leadership, organizational success
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