The Effects of Strategic Leadership Practices on the Financial Performance of East African Breweries Ltd

Abstract

leadership practices and financial performance are important to businesses because they are key determinants of organizational success. Previous studies have provided positive and negative findings on the effect of strategic leadership practices. Therefore, it highlights the necessity for further investigation. The research aimed to evaluate the effect of change management practices, strategic planning processes, and strategic innovation on the financial performance of the company. The study aimed to evaluate the effects of strategic leadership practices on the financial performance of East African Breweries Ltd. The foundation of the investigation was the upper echelon theory, transformational leadership theory and contingency theory. The research employed a case study approach using primary and secondary data from EABL employees and annual reports. The study was done using a sample of 128 employees. Data was collected using a closed ended questionnaires and the analysis was done using SPSS. The regression results show that the strategic leadership practices included in the analysis accounts for 75.9% of the variability in financial performance. Moreover, the regression results imply that change management, strategic planning processes, and strategic innovation do not exhibit statistically significant relationships with financial performance at the conventional significance level of 0.05. The study results recommend that leaders and managers within East African Breweries Ltd. (EABL) reassess their current change management strategies. The study findings also recommend that policymakers in Kenya should encourage an environment conducive to strategic leadership practices within organizations. Policymakers should consider initiatives that incentivize companies to prioritize effective change management strategies. The study findings also recommend that scholars and academicians in Kenya should delve deeper into research concerning strategic leadership practices and their impact on financial performance.