Influence of Organizational Capabilities and Strategic Leadership on the Performance of Commercial Parastatals in Kenya
DOI:
https://doi.org/10.47604/ejbsm.3827Keywords:
Organizational Capabilities, Strategic Leadership, Commercial Parastatals, PerformanceAbstract
Purpose: The main purpose of the study was to assess the influence of organizational capabilities and strategic leadership on the performance of commercial parastatals in Kenya. The research was guided by two specific objectives; to determine the influence of organizational capabilities on the performance of commercial parastatals; to determine the influence of strategic leadership on the performance of commercial parastatals in Kenya. The findings are expected to provide insights to policy makers on how the commercial parastatals in Kenya can incorporate organizational capability and strategic leadership to improve performance. The study was anchored on two major theories; the resource-based theory and the transformational leadership theory.
Methodology: Mixed research design was used for the study in order to address the research questions. The study targeted 297 respondents who were the head of divisions and heads of departments from selected commercial parastatals in Kenya. Both primary and secondary data was used. The data was analyzed using descriptive statistics and inferential methods including Pearson correlation and simple linear regression were used.
Findings: The results were organized and presented in tables. The findings indicate that organizational capability is positively correlated with performance of commercial parastatals (r= 0.620, p < 0.05). The study also concluded that strategic leadership is positively correlated with performance of commercial parastatals in Kenya (r = 0.668, p < 0.05).
Unique Contribution to Theory, Practice and Policy: In recommendation the study recommends that parastatals should promote a leadership culture that supports innovation, accountability, and employee empowerment to enhance organizational responsiveness and performance.
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Copyright (c) 2026 Alice Wambui Munene, Jane Omwenga, Roba Adan Abdi Boyante
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