Influence of Intellectual Stimulation on Organizational Performance of Water Service Companies in Western Region, Kenya

Abstract

Leadership practices remain a major challenge facing many organizations with a significant impact on performance. Because leadership is crucial for achieving organizational performance and gaining competitive advantage, intellectual stimulation styles of leadership are lacking. This matter seems contentious as is the case, since the prevailing global business environment has become dynamic and challenging for most organizations. Therefore, to attain a remarkable performance in the current volatile and competitive socio-economic environment, a combination of buoyant leadership practices is essential. This study sought to ascertain the influence of intellectual stimulation on the performance of water service companies in the Western Region, of Kenya. The study was anchored on institutional theory. The research followed a positivist research philosophy and used a descriptive and correlational research design. The target population was 638 with a sample size of 245 employees who comprised 97 Top level Managers, 149 Technical Staff and 392 Support Staff from four purposefully selected Water service companies. For data collection close-ended questionnaires were used.  A pilot study was done by Siaya-Bondo Water and Sanitation Company. To test validity, the study used content, construct, and face validity. Data was analysed using descriptive statistics which included frequencies, percentages, mean and standard deviation while inferential statistics employed simple linear regression. The results were presented in tables. The study found that intellectual stimulation had a positive and significant correlation effect on the performance of water service companies in Western Region, Kenya by 0.589 units (β₁=0.589, p=0.000). Thus, the null hypothesis that intellectual stimulation has no significant influence on the performance of water service companies in Western Region, Kenya is rejected, as intellectual stimulation positively and significantly impacts organizational performance. The study thus concludes that intellectual stimulation can develop employees periodically when given leadership roles where they can be allowed to make important decisions and also be able to participate in decision-making as leaders, hence relying on personal judgment in making those important decisions. The findings of this study contributed to the knowledge gap and linked intellectual stimulation leadership that develops employees periodically; the study recommends by giving leadership roles, employees can be allowed to make important decisions and also participate in decision making as leaders.