Influence of Strategic Leadership on Organization Performance of Not-For-Profit Organisations in Kenya

Pamela Mwajuma () and Prof. Allan Kihara Ph.D ()

Journal of Business and Strategic Management, 2025, vol. 10, issue 11, 14 - 36

Abstract: Purpose: The general objective of this study was to examine the influence of strategic leadership on organization performance of non-profit organizations in Kenya. Specifically, the study sought to examine the influence of strategic direction, human capital development, strategic control and ethical practices on organization performance of non-profit organizations in Kenya. Methodology: Descriptive research design was adopted and 11,262 non-profit organizations operating in Kenya formed target population. Using the Yamane simplified formula a sample of 386 was arrived at and selected through simple random sampling. Self-administered questionnaires was the technique used. Qualitative data was analyzed through content analysis. Descriptive analysis was used to analyze quantitative data. Correlation and regression analysis were used to test relationships between study variables. Findings: The study found that strategic direction, with a Pearson correlation value of 0.733, revealed a strong positive correlation with organization performance of NPOs in Kenya. The human capital development and organization performance had a Pearson correlation value of 0.774, which is a strong positive correlation. This means that an increase in human capital development increases the organization performance. On to strategic control, the Pearson correlation value of 0.724 with organization performance of non-profit organizations indicates a strong positive correlation between the two variables. Ethical practices had the highest Pearson correlation value of .812 with organization performance of non-profit organizations, indicating a very strong positive correlation between the two variables. Unique Contribution to Theory, Practice and Policy: The study thus recommends non-profit organizations to focus on the following key strategies to improve their performance: establishing clear goals aligned with the organization's mission, involving stakeholders in planning and monitoring progress; investing in staff training and development; implementing accountability measures, performance metrics, and regular reporting; and promoting ethical practices through standards, training, codes of conduct, and communication. These actions will enhance effectiveness, resource utilization, employee accountability, and ethical behavior.

Keywords: Strategic Direction; Human Capital Development; Strategic Control; Ethical Practices; Non-Profit Organizations (search for similar items in EconPapers)
Date: 2025
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