Effect of Strategic Leadership Practices on Organizational Performance in Service-Based Organizations in Kenya

Abstract

Purpose: The aim of the study was to assess the effect of strategic leadership practices on organizational performance in service-based organizations

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: Strategic leadership practices such as vision setting, decision-making, employee empowerment, and change management have a significant positive effect on organizational performance in service-based organizations. These practices enhance productivity, service quality, and customer satisfaction by aligning organizational goals with employee efforts and improving operational efficiency. Overall, effective strategic leadership enables organizations to achieve sustainable performance and maintain a competitive advantage.

Implications to Theory, Practice and Policy: Upper echelons theory, the resource-based view (RBV) theory & transformational leadership theory may be used to anchor future studies on assessing the effect of strategic leadership practices on organizational performance in service-based organizations. From a practical standpoint, service-based organizations should prioritize the development and implementation of effective strategic leadership practices to enhance performance outcomes. From a policy perspective, governments and regulatory bodies should develop frameworks that promote effective leadership practices in service-based organizations.