The Influence of Strategic Leadership on the Execution of Corporate Strategies in Investment Companies Listed on Nairobi Securities Exchange in Kenya.

Abstract

This study aimed at establishing the influence of strategic leadership on Execution of corporate strategies in investment companies listed on NSE in Kenya. Descriptive survey approach was used. Targeted population consisted of all the Five (5) listed companies in Kenya. Respondents were persons in top management. Semi-structured questionnaire was used to collect primary data. The response rate of this study was 100% as all companies responded. Most of the respondents were aged between bracket of 26-35 years, majority had an education past the graduate level. The respondents strongly and very strongly agreed that strategic leadership aspects were practiced in the respective organization. This included determination of corporate direction, effective management of corporate resource portfolio and emphasis on both effective organizational culture and ethical practices. Aspects of corporate strategy execution showed a strongly agree response indicating the respondents asserted that corporate strategies were well communicated from the top management down to the operational units ,incentives were linked to results, time was adequately allocated to discuss corporate strategies execution process ,a budget is allocated to cater for the resources needed to execute corporate strategies and finally ethical compliance is replicated by the top management in corporate strategy execution. A correlation analysis is further done on each of the five strategic leadership aspects that form the independent variable with each of the six corporate strategy execution aspects forming the dependent variable. Pearson correlation and P-value analysis are conducted and tabulated. The tabulation showed that only three correlations indicated a moderate and moderately strong relationship between the strategic leadership aspects and corporate execution aspects, but since their corresponding P values were greater than 0.05 the correlations were regarded as insignificant. Only two correlations were virtually able to achieve the crucial 0.05 level in vain, while the other P-values exceeded the confidence level of 0.05 this made them insignificant to establish strong relationship on how strategic leadership influences the execution of corporate strategies. The study will provide information to executives in charge of policy formation and implementation as it shows that there are other underling factors other than strategic leadership that relate to execution of corporate strategies .Organizations facing challenges such as poor performance, loss of market share and poor management has mostly blamed the strategic leadership which after changing still face the same challenges they faced before. The study will help Executives see through the gap between corporate strategy formulation and implementation through proper execution methods enabling organization to achieve competitive advantages in their respective markets. The study adds to Resource-based theory which suggests that an organization with those valuable, scarce and hardly available to ape resources that are none substitutable best positions a firm for sustainable competitive advantage. These strategic resources make it possible for development of firm capabilities that leads to superior performance in the long run according to Barney (1991). Management can therefore capitalize on execution of corporate strategies by identifying, developing and deploying the key resources such as have a strong tactical middle management level, to create advantage over competitors and maximize returns.