STRATEGIC LEADERSHIP STYLE, STRATEGY IMPLEMENTATION AND ORGANIZATIONAL PERFORMANCE OF AGRICULTURAL, LIVESTOCK AND FISHERIES PARASTATALS IN KENYA

Abstract

Whereas parastatals rely on government funding and donor support for sustainability, they often perform dismally. This study sought to establish the role of strategy implementation in the relationship between strategic leadership style and organizational performance of Agricultural, Livestock and Fisheries (ALF) parastatals in Kenya. Taking positivist approach, the study was anchored on Full Range Leadership Theory supported by Cultural Dimension, Open System Theory and Resource-Based View theory. Cross sectional survey design using a census was adopted with a target population consisting of 45 Chief executive officers and 135 senior managers from 45 ALF parastatals in Kenya. Primary data was collected using structured questionnaire and analysis done descriptively and inferentially using correlation, multiple regressions and bootstrapping. The results revealed: strong positive correlation (R=0.69) between strategic leadership style and performance; strong positive and statistically significant correlation (R=0.77) between strategic leadership style, strategy implementation and performance; and that 58.97% (R2=0.5897) of variation in performance is explained by the strategic leadership style and strategy implementation. Further, strategy implementation partially mediates the relationship between strategic leadership style and performance. Further, there is a significant strong positive correlation (R=0.773) between strategic leadership style, strategy implementation, and performance and that 59.8% of variance in performance was explained by strategic leadership style, and strategy implementation. The study recommends re-evaluation of leadership and strategy implementation policies at the inspectorate of state corporations in Kenya to enhance performance of the institutions and align them with stakeholder’s demands and the global emerging trends in strategy implementation. The ALF leaders should allow departments to device viable ways of achieving strategic objectives and make sure that strategic plan is developed and implemented using a participatory approach.