Strategic Leadership and Organizational Performance of Family-owned Businesses in the Construction Industry in Kisumu City, Kenya.

Abstract

The concept of strategic leadership is an essential foundation for any organization's overall performance with evidence from previous studies. Moreover, multiple instances have shown that the performance of organizations results from well-implemented strategic management practices, and this has made this research project necessary. The objective of the current study was to evaluate the effects of strategic leadership on the performance of family-owned construction businesses in Kisumu City, Kenya. The key objectives were; to determine the strategic management practices adopted by family businesses and to determine the impact of strategic management practices on the performance of family businesses in the construction industry in Kisumu City, Kenya. The study was anchored on complex leadership theory and supported by upper echelon theory and resource perspective theories. Using a target sample of 98 firms, descriptive research was conducted. A 5-point Likert scale questionnaire served as the primary data gathering instrument. Descriptive and inferential statistics for regression analysis were applied to the output using mathematical models. The results of the study showed that 16.6% of the performance of family construction companies was attributed to leadership style, while the remaining 83.4% was attributed to other factors, and error terms not included in the study from the construction industry. It was thus concluded that indeed strategic leadership practices were adopted to a moderate extent in various family construction businesses in Kisumu District and that strategic leadership practices had a significant impact on the performance of construction business firms. The study therefore recommended that there is a need for a thorough review of strategic leadership practices by family construction companies in Kisumu District as well as other districts across the country, Kenya. In addition, the study recommended that family construction companies actively apply strategic management practices that could have a positive impact on their performance. Finally, the study recommended that family construction businesses review their human resource policies to include strong knowledge and skills development with updates or enhancements to positive ethical practices that focus on values and compliance in the construction industry. Empirical data obtained from the current study could benefit stakeholders in the construction industry in Kenya. Further studies could be conducted that would include a comparison of the construction business and other sectors of the economy both within the county and across the country, Kenya.

The concept of strategic leadership is an essential foundation for any organization's overall performance with evidence from previous studies. Moreover, multiple instances have shown that the performance of organizations results from well-implemented strategic management practices, and this has made this research project necessary. The objective of the current study was to evaluate the effects of strategic leadership on the performance of family-owned construction businesses in Kisumu City, Kenya. The key objectives were; to determine the strategic management practices adopted by family businesses and to determine the impact of strategic management practices on the performance of family businesses in the construction industry in Kisumu City, Kenya. The study was anchored on complex leadership theory and supported by upper echelon theory and resource perspective theories. Using a target sample of 98 firms, descriptive research was conducted. A 5-point Likert scale questionnaire served as the primary data gathering instrument. Descriptive and inferential statistics for regression analysis were applied to the output using mathematical models. The results of the study showed that 16.6% of the performance of family construction companies was attributed to leadership style, while the remaining 83.4% was attributed to other factors, and error terms not included in the study from the construction industry. It was thus concluded that indeed strategic leadership practices were adopted to a moderate extent in various family construction businesses in Kisumu District and that strategic leadership practices had a significant impact on the performance of construction business firms. The study therefore recommended that there is a need for a thorough review of strategic leadership practices by family construction companies in Kisumu District as well as other districts across the country, Kenya. In addition, the study recommended that family construction companies actively apply strategic management practices that could have a positive impact on their performance. Finally, the study recommended that family construction businesses review their human resource policies to include strong knowledge and skills development with updates or enhancements to positive ethical practices that focus on values and compliance in the construction industry. Empirical data obtained from the current study could benefit stakeholders in the construction industry in Kenya. Further studies could be conducted that would include a comparison of the construction business and other sectors of the economy both within the county and across the country, Kenya.