MODERATING EFFECT OF LEADERSHIP STYLE ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND PERFORMANCE OF INSURANCE COMPANIES IN KENYA
Abstract
Background of the Study: Leadership style is the method that a leader uses when providing direction, implementing plans and motivating people. In Kenya, the environment in which insurance companies operate has been fraught with various corporate governance and leadership challenges that have hindered its progress.
Objective of the Study: This study sought to establish the moderating effect of leadership style on the relationship between corporate governance and performance of insurance companies in Kenya.
Research Methodology: The philosophical foundation of this study was positivism, where quantitative data was used. Cross-sectional survey design was adopted for this study. The study population comprised of fifty two (52) insurance companies in Kenya licensed by the Insurance Regulatory Authority (IRA) as at December, 2017. The respondents were the senior managers and the general employees. This study utilized primary that was collected using questionnaires.
Results and Findings: The findings indicated that leadership style has a significant moderating effect on the relationship between corporate governance and performance of insurance companies in Kenya. The study also established that leadership style has a significant moderating effect on the relationship between corporate governance and performance of insurance companies in Kenya.
Conclusion and Recommendations: The study concluded that leadership style has a positive and significant moderating effect on the relationship between corporate governance and performance of insurance companies in Kenya. This study advocates that leadership style be taken seriously by the managers in organizations.
Keywords: Leadership style, Corporate Governance, Performance, Insurance Companies & Kenya
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