Strategic Leadership and Performance of Registered Construction Companies In Nairobi City County, Kenya
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Date
2022
Authors
Ngiri, George Muchangi
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
In the modern business era, companies across industries are striving to enhance their performance by among other avenues, strategically aligning their leadership to the dynamic global market. Particularly in developing economies marked by rapid infrastructural developments, construction companies are reportedly adopting strategic leadership in an effort to remain competitive with fast advancing building technologies, rising costs of raw materials and shifting consumer demands. In the country however, the sector has been facing declined in performance despite the immense growth in construction projects. This project thus sought to assess the influence of strategic leadership on the performance of building construction companies in Nairobi Kenya. Specifically, the study sought to examine the influence of strategic resource mobilization, strategic human capital development, strategic innovation and strategic communication on the performance of building construction companies in Nairobi Kenya. The study was informed by contingency theory, resource dependence theory, diffusion theory of innovation and technology acceptance theory. A descriptive and cross-sectional research design was used while the target population comprised of CEOs drawn from 126 registered building construction companies in Nairobi County. The study used a sample size of 96 CEOs, sampled through a combination of stratified random and purposive sampling techniques. A structured questionnaire was used to collect the data. Prior to main data collection, a pilot study involving 10% of the sample size was conducted with a view to test for reliability and validity. While Cronbach’s alpha was used to check for reliability, both face and content validity was checked using subject-matter expert, that this the thesis supervisor, while construct validity was tested through confirmatory factor analysis. The obtained data was analysed using both descriptive and inferential statistics through Statistical Package for Social Sciences (SPSS) Version 27. The data was presented in frequency tables and pie charts for easier of interpretation. The study found that strategic resource mobilization, strategic human capital development, strategic innovation and strategic communication had a positive and significant influence with the performance of building construction companies in Nairobi Kenya. The study concluded that strategic resource mobilization is critical to any organization because it ensures the continuation of the organization’s service provision to clients and supports organizational sustainability. Strategic human capital development enables the organization to bring their overall objectives into better alignment with the actions of their employees. Strategic innovation structures efforts around the organizational goals and ensures that all departments of the organization support them. Strategic communication helps organizations focus on and live their purpose, mission and values by aligning expectations, actions and behaviours to business objectives. The study recommended that the organizations should put in place clearly identifiable structures and arrangements with primary responsibility for resource mobilization for the systematic implementation of the resource mobilization strategy/policy, monitoring and regular updates. The organization’s human resource department must identify how to align its activities with the firm’s strategic goals. The organization should align its innovation strategy with the overall business model and its mission, vision, and value proposition. The organization should use great communication tools to make internal communication within its team more effective, meet with employees regularly in order to improve communication and collaboration.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of Degree in Master of Business Administration (Strategic Management Option) Of Kenyatta University, December 2022.
Keywords
Strategic Leadership, Registered Construction Companies, Nairobi City County, Kenya