Effect of Strategic Leadership Styles on Organizational Performance: A Survey of Chartered Universities in Kenya

Abstract

Universities play an important role in the economic development of countries. It is widely agreed to a larger extent that university management and leadership style form an important pillar in the performance of the institutions of higher learning. Leadership is a concept that has undergone much adaptation to suit the unique needs of each organization due to the changes in demographics, globalization, and technology and work practices. As a result of this evolution, strategic leadership approach has been adopted by institutions of higher learning globally. In Kenya, universities practice strategic leadership as they have adopted different strategies at various levels of management. However, there are varying levels of performance in Uuniversities as indicated in their rankings despite all of them adopting strategic leadership. This is a gap that prompted a study on establishing the link between strategic leadership and organizational performance in Kenyan chartered universities. The study used a descriptive cross-sectional research design. The study sample consisted of Vice Chancellors and Deputy Vice Chancellors from 27 public universities and 16 private universities. Data analysis was done using Independent samples t-test, ANOVA, multiple regression and Pearson correlation analysis. The research found that VCs were more likely to use transformational leadership style than DVCs. Organisational performance was also found to be higher among newly appointed VCs and DVCs but it declined as one stayed longer in their management position. The age of the office bearer was found not to influence their choice of leadership style. The results of correlation and multiple regression analysis showed that transformational leadership style had a significant positive effect on performance while transactional leadership had a negative effect on performance. Further regression analysis showed that transformational leadership (intellectual stimulation) was the only significant positive predictor of organisational performance (β=0.532, p=0.000). This implies that transformational leadership is more effective in the university management than transactional leadership. Thus, university management should aim at improving on their ability to deploy this kind of style to achieve better results.