Strategic leadership practices and organizational performance in telecommunication firms in Kenya: A case of Telkom Kenya

Abstract

How well an organization implements its policies and programs and accomplishes its strategic intent is of principal concern since it forms a basis on how its performance is defined and is a derivative of the leadership model within the organization. Performance has been one of the challenges facing telecommunication firms in Kenya and globally with many shutting down and failing to break even. The knowledge of strategic leadership practices and its translation to organizational performance is important for the survival of telecommunication industries in the wake of intense and fierce competition for limited resources brought about by globalization and the exponential growth of technology. This study sought to establish how strategic leadership practices can influence performance within telecommunication firms in Kenya and effectively derive organizational success. The specific objectives of the study were: to determine the role of strategic direction, organizational capabilities, ethical practices, and strategic control on organizational performance. The study was anchored mainly on strategic leadership theory. However, there are three other related theories that were used to support namely: transformational leadership, path-goal leadership and performance goal theories. The researcher employed a pragmatic philosophy. Descriptive survey design with a mix of quantitative and qualitative methods was employed. The target population was 300 respondents obtained from top, middle, lower level managers and junior staff at Telkom Kenya headquarters based in Nairobi. Stratified random sampling was used in classifying the population to the various management levels after which a simple random sampling technique was used to arrive at the respondents in each stratum. A structured questionnaire and face-to-face in-depth interviews was adopted as data collection techniques. Quantitative data was analyzed using descriptive and inferential statistical techniques. Correlation and regression analysis was also used to provide answers to the research questions of the study. Content analysis was used in analyzing qualitative data. Results showed that strategic direction (β=0.317, p=0.000), organizational capacity (β=0.344, p=0.000), ethical practices (β=0.162 p=0.026) and strategic control (r=0.161, p=0.001) were positively and significantly related to the performance of telecommunication organization. The study concluded that practices of strategic leadership can be beneficial to telecommunication organizations by providing direction and consequently pulling all members in one direction in the pursuit of common objectives. The study recommended that the management of telecommunication organizations should adopt strategic leadership practices in order to improve their performances. Management should make plans and execute them strategically in their personal capacities and this will translate to changes in the organization performance as a whole.