Impact of Organizational Culture Alignment on Performance of State Corporations in Kenya: The Moderating Role of Transformational Leadership

Evanson Njoroge Kamuri (), Peter Wanjohi (), Noor Ismail () and Agnes Njeru ()

American Journal of Business and Strategic Management, 2025, vol. 4, issue 1, 1 - 17

Abstract: Aim: The study aimed to determine whether transformational leadership style affects the relationship between culture alignment and firm performance in state corporations in Kenya and the effect of culture alignment on this performance.Methods: The study adopted a cross-sectional research design. Its target population was Chief Executive Officers and Senior Managers, individuals who are directly involved in strategy and planning in the organization. The target population was 221 state corporations, of which 143 formed the sample size. A self-administered questionnaire was used to collect the primary data, and Statistical Package for Social Sciences (SPSS) version 25 was used in data analysis.Results: Pearson correlation results indicated that cultural alignment was positively and significantly related to the performance of state corporations. The F statistic for aligning organization culture was statistically significant, which implied that aligning organization culture statistically influenced the performance of state corporations in Kenya. Introducing transformational leadership in the regression model as a moderating variable reduced the F-statistic, indicating that transformational leadership affects the strength of these relationships. However, despite the reductions, relationships remain statistically significant in all cases.Conclusion: The study concludes that the culture alignment process affects the performance of State Corporations in Kenya. This means that state corporations should have a clear strategy for the cultural alignment process and channels for communicating with all stakeholders. Recommendations: The study recommends that organizations have a clear strategy for culture alignment culture. Organizations should appraise leaders of transformational leadership capabilities through the integration of the attributes as part of performance reviews. In addition, organizations should implement leadership development programs that foster leadership skills, training on emotional intelligence, inspiring vision, innovation, and individualized support for team members.

Keywords: Leadership; culture; transformational; strategy; performance (search for similar items in EconPapers)
Date: 2025
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