EXPLORING STRATEGIC LEADERSHIP AS A DETERMINANT OF ORGANIZATIONAL PERFORMANCE IN TIER III COMMERCIAL BANKS WITHIN NAIROBI CITY COUNTY, KENYA

Andrew Gathirwa Kamau, Peter Philip Wambua

Abstract


This paper examines strategic leadership facets with regard to their influence on organizational performance among tier III commercial banks in Nairobi City County, Kenya. The operational effectiveness and productivity of financial institutions have been molded by evolving leadership patterns and ongoing modifications within their functional environment. It is notable that strategic leadership is the engine through which organizations are developed and sustained through proper implementation of well-defined strategies. However, the extent to which these leadership facets contribute to the overall organizational performance of tier III commercial banks is inadequately explored, especially within the Nairobi City County. Hence, this study was undertaken to fill the void. The study was supported by McKinsey 7s model and Situational Leadership Theory, employing a descriptive research design to examine the underlying relationships between the two variables. The study targeted all 22 tier III commercial banks in Nairobi County, from whom quantitative data were collected. Data analysis was carried out using descriptive statistics, correlation and regression analysis. Key among the findings indicated that different facets of strategic leadership affected organizational performance positively with evidence of beta value of (β1) of 0.282. This illustrated statistically significant influence of the banks’ strategic leadership on their organizational performance. 


JEL: G21 – Banks; Other Depository Institutions; Mortgages; M12 – Personnel Management; Executives; Executive Compensation; M10 – Business Administration: General; L21 – Business Objectives of the Firm; O15 – Human Resources; Human Development; Income Distribution; Migration

 

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strategic, leadership, organizational performance, tier III, commercial banks

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DOI: http://dx.doi.org/10.46827/ejefr.v9i5.2108

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