Influence of Leadership Competencies on Performance of State Corporations in Kenya

Abstract

Purpose:The main objective of the study was to establish the effect of leadershipcompetencies on performance of state corporationsin Kenya.Methodology:The study adopted a cross-sectional survey research design. Findings:Results revealed that all the leadership competencies had a positive a significant relationship with the financial performance of state corporations in Kenya. However, the magnitude of the influence was different for the specific leadership competencies. Social awareness leadership competency had the largest effect followed by self-awareness leadership competency then social skills leadership competency and finally the self-management leadership competency. Results also revealed that self-awareness leadership competencyand social skillsleadership competencyhad a positive a significant relationship with the non-financial performance of state corporations in Kenyawhile self-management leadership competency and social awareness leadership competencyhad a positive but insignificant relationship. However, the magnitude of the influence social skills leadership competency was higher than that of self-awareness leadership competency. Further, the results showed that organization size only had a positive and significant moderating effect on the relationship between leadership competencies and non-financial performance of state corporations in Kenya.Unique contribution to theory, practice and policy:Leadership competencies affect the development, functioning and management of state corporations thus improving the performance of these organizations.Hence, the study findings and recommendations of the study would be an eye opener to these corporations and provide them with the opportunity of improving its self-management leadership competencies. The findings of this study will also facilitate the availability of information for regulatory bodies such as CMA and NSE (in case of listed