THE INFLUENCE OF INSPIRATIONAL MOTIVATION ON OPERATIONAL PERFORMANCE OF TIER TWO COMMERCIAL BANKS IN KENYA


Boniface Kyalo Kivai , Christopher Mutembei
The East Africa University , Kenya
Abstract
This study investigated the influence of inspirational motivation on the operational performance of Tier 2 commercial banks in Kenya. Operating against a backdrop of persistent challenges, including high operational costs, slow turnaround times, and declining customer retention, the role of leadership style—specifically transformational leadership dimensions—was examined as a potential underlying factor. Inspirational motivation (IM) is defined as the leader's ability to communicate a compelling vision and encourage commitment to organizational goals. The study employed a descriptive research design, collecting quantitative data from a sample of 215 employees across Tier 2 banks. Quantitative data were analyzed using correlation and multiple regression. Descriptive findings indicated high levels of inspirational motivation behaviors among leaders. Correlation analysis revealed a strong, positive, and significant relationship between inspirational motivation and operational performance (r = .761, p < .001). Furthermore, regression analysis identified inspirational motivation as the strongest predictor of operational performance (β = .432, p = .000). The study concluded that inspirational motivation is the most influential driver of operational performance, greatly enhancing outcomes such as turnaround time, customer retention, cost efficiency, and internal process effectiveness.
Keywords: Inspirational Motivation, Operational Performance, Transformational Leadership, Tier 2 Commercial Banks, Kenya, Financial Sector.
Journal Name :
EPRA International Journal of Multidisciplinary Research (IJMR)

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Published on : 2025-12-17

Vol : 11
Issue : 12
Month : December
Year : 2025
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