Organizational performance in volatile markets: Strategic leadership lessons from NSE-listed financial institutions in Kenya

This study investigates the influence of strategic leadership components on the performance of financial multinational companies listed on the Nairobi Securities Exchange (NSE) in Kenya. Specifically, it examines the effects of strategic controls, organizational capabilities, visionary leadership, and organizational change management on performance outcomes, measured through profitability and branch expansion. Employing a descriptive research design, the study targeted 14 listed commercial banks and 250 middle-level managers across marketing, relationship, and finance departments. A sample of 154 respondents was selected using stratified random sampling and the Taro Yamane formula. Data were collected via structured questionnaires incorporating five-point Likert scales and administered both electronically and through the drop-and-pick method. Analysis was conducted using SPSS, applying both descriptive and inferential statistics. The findings reveal that all four strategic leadership components significantly impact organizational performance, with organizational change management exerting the strongest influence. The study concludes that strategic leadership is pivotal for sustaining competitiveness and growth in Kenya’s financial sector. It recommends enhancing strategic reviews, fostering innovation and business intelligence, articulating clear organizational visions, and promoting adaptability, effective communication, and employee engagement to drive performance improvements.