Influence of Strategic Leadership on Performance of Micro-finance Institutions in Nairobi County, Kenya
Abstract
The study’s aim was to examine the influence of strategic leadership on performance of
micro-finance institutions in Nairobi County, Kenya. Specifically, the study examined the
correlation between strategic leadership and performance of MFIs in Nairobi County, Kenya.
The0study was based on Upper echelon theory and Contingency theory. The target
population was forty-six (46) microfinance institutions registered as members of AMFI in
Nairobi County. Explanatory and cross-sectional research design was adopted. Close ended
questionnaires were used to collect primary data. The study adopted mixed data analysis
method, inferential and descriptive analysis were performed. The collected quantitative data
was0analysed using descriptive statistics techniques. Data analysis focused on demographic
information analysis, descriptive statistics and inferential statistics.0The study showed that
the leaders set clear objectives for the organization and the organization leadership ensures
that employees work towards achieving set goals. The organization’s vision, mission, goals,
objectives and strategies were communicated to all employees and the strategic objectives of
the MFI aligned with mission and vision statement. Leaders ensured executed performance
strategies were evaluated post implementation and also assessed the strengths, 0weaknesses,
opportunities, and0threats in order to enhance understanding of the prevailing business
climate. Formulation of strategy execution approach resulted to increase in profitability
hence an increase in return on assets. Adoption of strategic leadership styles improved sales
hence revenue and profitability. SWOT analysis resulted to an increase in market share and
return on investment grew due to clarity of organizational objective. The study established
that strategic leadership0had a strong positive correlation, positive influence and significant
with/on performance of MFIs. A unit increase in strategic leadership led to an increase in
performance of MFIs in Nairobi County, Kenya. The study concluded0that0strategic
leadership is positively related to performance of MFIs in Nairobi County, Kenya. The
study’s recommendation was that organizational0leaders ought to ensure a shared powerful
vision to provide direction and ensure sustenance of the transformation process to create the
future. Further, there was need for strategic control measures to enable strategic0plans put in
place by the organizations become a reality and hence imperative that Boards of directors and
senior management team recognize the intended reality.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1515]
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