EMERGING STRATEGIC MANAGEMENT PRACTICES IN AFRICA: TOP MANAGEMENT TEAM DIVERSITY AND THE PERFORMANCE OF PUBLIC BENEFIT ORGANIZATIONS IN KENYA
Abstract
Purpose of the study: The management and governance of contemporary African organizations has been changing over the years to synchronize with ever increasing complexity and dynamic operating environment. Increased competition due to globalization and technological advancements has pressed organizations to employ capable and diverse leaders able to develop high-quality strategies, increase profits, and promote growth and innovation.
Problem statement: Despite wide interest from scholars and practitioners, the influence of Top Management Team (TMT) diversity on performance has been found to be ambiguous in most instances, and with varied impact in different contexts. This study objective was to investigate the influence of TMT diversity on performance of Public Benefit Organizations (PBOs) and the impact of strategic change, strategic leadership and external environment on this relationship.
Study Methodology: The study applied a cross sectional research design on a population of all the PBOs in Kenya from whom a sample of 138 respondents was acquired. Quantitative and qualitative data was collected and analysed from 101 PBOs in Kenya using descriptive and inferential statistics.
Results of the study: The study found that TMT diversity has a statistically significant influence on PBO performance. The study further found that strategic leadership and external environment have a moderating effect on the relationship between TMT diversity and PBO performance. However, strategic change was found to lack intervening influence on the relationship between TMT Diversity and PBO performance.
Conclusion and policy recommendation: The study therefore concludes that TMT diversity influences PBO performance with moderating influence of strategic leadership and external environment. The study recommends adoption of TMT diversity practises in PBOs in Africa due to their ability to leader lead change in diverse environmental contexts. Further studies targeting the four variables in varying contexts to assess their impact and relationship towards their inclusion in the theories and policies in PBOs management ought to be undertaken. The study contributes to the PBO management policies and practices particularly on the importance of ensuring diverse TMT due to their ability to lead and take strategic decisions in dynamic African context.
Keywords: Management; TMT Diversity; Performance; Public Benefit Organizations; Strategic Change
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