STRATEGIC LEADERSHIP AND ORGANIZATIONAL PERFORMANCE OF PARASTATALS IN UASIN GISHU COUNTY, KENYA

Abstract

The capacity of an organisation to use the resources at its disposal in order to produce significant results by way of coordinated activities and deliberate strategic decisions is referred to as organisational performance. This specific structure is of significant importance for organisations that are referred to as parastatal organisations. Their success is evaluated via the use of both monetary and non-monetary measures. In response to the continual changes in operational environments, state businesses are increasingly adopting strategic leadership approaches, which they now acknowledge as critical drivers of growth at the institutional level. In spite of the fact that there has been research carried out by academics in the local area that has looked at aspects of strategic leadership, there has been little empirical work done that has assessed the impact that strategic leadership has on the operation of parastatals. This research looked at the ways in which strategic leadership influences the performance of parastatal organisations in Uasin Gishu County. It did so by evaluating the individual and collective impacts of transformational and transactional leadership styles. The research design that was used in this study was explanatory in nature, and it was chosen in accordance with the upper echelon theoretical perspective. Through the use of standardised questionnaires, all thirty-one chief executives and branch heads from the parastatals in the county took part in the process. The results of the study showed that there was a large and strong positive correlation between transformational leadership and organisational success (r = 0.899; p = 0.000), as well as between transactional leadership and organisational performance (r = 0.646; p = 0.001). Additional hypothesis testing demonstrated that transformational leadership served as a significant predictor of performance (β = 0.808; p = 0.000) and substantiated the fact that transactional leadership also had a substantial effect (β = 0.646; p = 0.001). The findings from the combined model also provided evidence that the two leadership styles had a collective impact on performance outcomes, with a p-value of less than 0.05. According to the findings of the research, the use of transformational and transactional leadership styles leads to an improvement in the performance of parastatals in Uasin Gishu County, particularly when these two leadership styles are utilised in a complimentary fashion. Through the reinforcement of resource utilisation and the facilitation of the accomplishment of institutional objectives, strategic leadership is able to enhance the outcomes of organisations. The recommendations of this research are that leaders of parastatals adopt an integrated leadership strategy and make investments in the ongoing development of leadership skills. These recommendations are based on the results of the study