EFFECT OF LEADERSHIP COMPETENCIES ON PERFORMANCE OF STATE CORPORATIONS IN KENYA
Keywords:
Leadership Competency, Organization Size, Financial Performance, Non-financial PerformanceAbstract
Purpose: The main objective of the study was to establish the effect of leadership competencies on performance of state corporations in Kenya.
Methodology: The study adopted a cross-sectional survey research design.
Findings: Results revealed that all the leadership competencies had a positive a significant relationship with the financial performance of state corporations in Kenya. However, the magnitude of the influence was different for the specific leadership competencies. Social awareness leadership competency had the largest effect followed by self-awareness leadership competency then social skills leadership competency and finally the self-management leadership competency. Results also revealed that self-awareness leadership competency and social skills leadership competency had a positive a significant relationship with the non-financial performance of state corporations in Kenya while self-management leadership competency and social awareness leadership competency had a positive but insignificant relationship. However, the magnitude of the influence social skills leadership competency was higher than that of self-awareness leadership competency. Further, the results showed that organization size only had a positive and significant moderating effect on the relationship between leadership competencies and non- financial performance of state corporations in Kenya.
Unique contribution to theory, practice and policy: Leadership competencies affect the development, functioning and management of state corporations thus improving the performance of these organizations. Hence, the study findings and recommendations of the study would be an eye opener to these corporations and provide them with the opportunity of improving its self-management leadership competencies. The findings of this study will also facilitate the availability of information for regulatory bodies such as CMA and NSE (in case of listed state corporations such as Kenya Power and Lighting Company) or supervisory bodies such as Inspectorate of State Corporations, Controller and Auditor-General. The study will provide invaluable input on its self-management leadership competencies of state corporations which they will adopt in formulating laws and regulations affecting its self-management leadership competencies. Strengthening leadership competencies at corporation level might be a viable option for Kenya as a country which is faced by major Leadership competencies challenges characterized by corruption and misallocation of resources.
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