The Joint Effect of Strategic Leadership, Strategy Implementation, Macro Environment and Performance of Companies Listed on the Nairobi Securities Exchange

Abstract

Purpose: This research examined the joint effect of strategic leadership, strategy implementation and macro-environmental factors on the performance of companies listed on the Nairobi Securities Exchange (NSE). The investigation was guided by four distinct objectives, each stemming from this central research purpose. Methodology: The study's primary theoretical framework was Upper Echelons Theory, with supplementary conceptual support provided by Environment Dependency Theory, Institutional Theory, and Expectancy Theory. A positivist philosophical approach informed the design, which utilized a cross-sectional survey methodology. Primary data was collected using structured questionnaires. The research population consisted of all 63 NSE-listed companies as of December 2021. Data analysis incorporated both descriptive and inferential statistical methods. Findings: The results demonstrated that strategic leadership has a significant positive impact on organisational performance outcomes. Strategy implementation emerged as a significant mediator in the strategic leadership-performance relationship. Similarly, the macro environment exhibited substantial moderating effects on this association. These findings indicate that strategic leadership achieves superior organisational results when properly synchronized with internal execution processes and environmental responsiveness. Strategy implementation functions as an essential integrative framework, ensuring harmony between internal organisational capabilities and external environmental requirements. The research provides partial validation of previous empirical investigations and advances theoretical, practical, and policy knowledge domains. Furthermore, Upper Echelons Theory receives reinforcement through these findings. Unique Contribution to Theory, Practice and Policy: The research offers practical insights for managers and policymakers regarding the importance of continuous strategic assessment in dynamic operational contexts. Organisations should implement regular strategic reviews to maintain alignment between evolving macro-environmental circumstances and shifting organisational objectives. This systematic approach is crucial for ensuring sustained competitive advantage through adaptive leadership practices that are responsive to both internal capabilities and external market dynamics.