EFFECT OF INTERPERSONAL RELATION STRATEGY ON SUSTAINABLE PERFORMANCE OF SERVICE FIRMS IN ELDORET TOWN, KENYA

Abstract

Interpersonal relations at the workplace create an advantageous effect on the organizational and individual variables. The core purpose of this study was to establish the effect of interpersonal relation strategy on sustainable performance of service firms in Eldoret town, Kenya. This research aimed at: determining the impact of employee trust, employee interpersonal sensitivity and employee perspective taking on sustainable performance. The study was guided by two theories; Relational Dialectic Theory and Capital-Based Theory of Sustainability. An explanatory research design was employed. Simple random sampling was utilized to choose 486 employees from a target population of 3513 employees in 26 service firms. The study used a five-point likert scale questionnaire to collect data from sampled employees. Reliability of the information gathered was reviewed through the utilization of Cronbach alpha coefficients, Internal and External Validity was measured using face to face and factor analysis respectively. Descriptive and inferential statistics were used in data analysis. Correlation coefficient was utilized to test the correlation of the variables and multiple regression model was utilized to empirically test the hypotheses. The study findings indicated that employee trust had a positive significant effect on sustainable performance (β1 = 0.286, p < 0.000). Employee interpersonal sensitivity had a positive significant effect on sustainable performance (β2 = 0.132, p < 0.000), and that employee perspective taking had a positive significant effect on sustainable performance (β3 = 0.458, p < 0.000). Based on the findings of the study, it was concluded that interpersonal relation strategy among employees increased sustainable performance. Thus, the study provided knew knowledge that informed service firms’ management on interpersonal relation strategies which included employee interpersonal sensitivity, employee trust and employee perspective taking that were employed to increase sustainable performance of service firms. Therefore, service firms need to intentionally focus on fostering trust, interpersonal sensitivity, and perspective taking as dimensions of interpersonal relation strategy significant in upgrading social communication, customer satisfaction and creating a long term client relationship as a reason for building and maintaining client dependability which are essential in sustainable performance achievement.