Moderating Effect of Governance Principle Application on the Mediation Effect of Technological Capability

Abstract

Background of the Study: Sustainability of water service is a key desire for government, non-government and communities at large since a sustained project ensures continuous deliverance of benefits to the target beneficiaries for a long time. Planning for sustainable activities calls for engagements of stakeholders and the target beneficiaries to create a better understanding and pave way for implementation of formulated activities. The presence and functionality of water user committees, training in the Water Service Providers (WSPS) and the level of external support were the institutional factors which impacted on sustainability.

Objective of the Study: The current paper sought to establish the moderating effect of governance principle application on the mediation effect of technological capability on the relationship between management practices and service sustainability of water companies in Kenya.

Theoretical Orientation: This paper was anchored on the Sustainability theory and supported by the theory of constraints, general systems theory and Mc Gregor’s Theory X and Y.

Methodology: This paper adopted positivism philosophy. This study employed a cross-sectional survey design. The pilot test was carried out on 8 respondents from the 4 categories of the WSPs. The Quantitative data was analysed using Statistical Package for Social Sciences (SPSS version 22).

Results and Findings: The study revealed that there was a statistically significant moderating effect governance principle application on the mediation effect of technological capability on the relationship between management practices and service sustainability. The joint effect of governance principle application and technological capability was higher and significant compared to the individual effect of individual variables therefore the hypothesis that there is no significant moderating effect of Governance principle application on the mediation effect of technological capability on the relationship between management practices and service sustainability was rejected and the alternative hypothesis supported. The findings also revealed that when the interaction term was introduced, indicated a significant relationship, thus Governance principle application was found to moderate the relationship between technological capability and service sustainability of water companies in Kenya (moderated mediation).

Conclusion: The study concluded that, the introduction of Governance principle application had a buffering moderating effect on the relationship between technological capability on the relationship between management practices and service sustainability. The study concluded that that there is need for governments and water sector stakeholders to move beyond infrastructure development to ensuring water service providers receive capacity building with a focus on governance, technical capacity and equipping with information. The study also concluded that training community members on financial management is critical to guaranteed transparency and accountability of the revenue and expenses. The adoption of sustainability theory enables project managers and the community to maintain and sustain the project or programme outcomes through utilization of their own resources and assets to enjoy the benefits of a project without compromising enjoyment of such benefits to the future generation.

Recommendations: The study recommends that the management of water services should have an integrated approach that not only addresses physical investments but also improves internal technological skills and provides a governance framework that enhances stakeholder voice. Further, the study recommends that the management of water companies should make informed decisions while planning for their medium- and long-term strategies for water projects that will enable them ensure efficient supply water and sanitation to various regions and hence attain project sustainability. Finally, the study recommends that WSPs should adopt user involvement, executive management support, proper planning and mobilization of resources, realistic expectations, competent staff, clear vision and objectives, availability of resources, competence in technology, managing scope, managing issues that arise from project teams, monitoring and evaluating project progress and risk management.