RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
Abstract
Purpose of the study: The purpose of the study was to investigate the impact of transformational leadership on the performance of commercial state corporations in Kenya.
Statement of the problem: Commercial state corporations in Kenya face unique challenges such as political interference and resource constraints, which complicate the relationship between leadership and performance. While transformational leadership is widely recognized for its positive impact, its effectiveness in this specific context remained unclear.
Methodology: The study employed a cross-sectional survey design, targeting a population of 150 senior managers from 30 commercial state corporations. A sample of 100 managers was selected using stratified random sampling. Data were collected using a structured questionnaire and analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis.
Findings: The study found that transformational leadership had a significant positive impact on the performance of commercial state corporations in Kenya. The coefficient of determination (R Square) was 0.645, indicating that transformational leadership explained 64.5% of the variation in organizational performance. All four components of transformational leadership (inspirational motivation, intellectual stimulation, individualized consideration, and idealized influence) showed positive relationships with performance.
Conclusion: The study concludes that transformational leadership plays a crucial role in enhancing the performance of commercial state corporations in Kenya. Despite the challenges faced by these organizations, transformational leadership practices can significantly improve organizational outcomes.
Recommendations: The study recommends that commercial state corporations in Kenya should invest in leadership development programs that emphasize transformational leadership skills. Policymakers should design initiatives to promote transformational leadership in public sector organizations, and recruitment processes should prioritize candidates with transformational leadership qualities. Further research should explore additional factors affecting performance in these organizations.
Keywords: Transformational Leadership, Organizational Performance, Job Satisfaction, Employee Development, Public Sector, Kenya
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