The Moderating Role of Transformational Leadership and Involvement on Organizational Performance of Micro Finance Institutions in Nairobi County, Kenya

Abstract

The study investigates the moderating role of transformational leadership and involvement on organizational performance of micro finance institutions in Nairobi County Kenya.  It adopted descriptive research design. The target population consist of 43 micro finance institutions in Nairobi town with 236 cadre of employees in total. The study used simple random sampling technique. The sample size consisted of 108 employees. The type of data used was primary collected using self-administered questionnaires. Data was analyzed using both descriptive statistics and inferential statistics. The research findings indicated that organizational culture significantly relates to organizational performance. The study established that transformational leadership significantly affects the relationship between organizational culture and firm performance of the micro finance institutions in Nairobi. The study informs management on how culture influences organizational performance by providing empirically tested evidence and the role leadership play.