Strategic Leadership Practices and Organizational Performance in Not-For-Profit Organizations in Nairobi County in Kenya

Abstract

Strategic leadership practice is paramount in leading 21st century organizations due to the unpredictable operating environment which is becoming more and more volatile, uncertain, complex and ambiguous. Strategic leadership practices were found to be limited not-for-profit organizations yet not-for-profit organizations play an important role in the society of offering vital services to the less fortunate in the society in time of need. This study sought to determine the effect of strategic leadership practices on the organizational performance of not-for-profit organizations in Nairobi County in Kenya. More precisely, the study sought to determine the effect of determining strategic direction on not-for-profits’ organizational performance; to find out the effect of developing human capital on not-for-profits’ organizational performance; to assess the effect of emphasizing ethical practices on not-for-profits’ organizational performance; and to determine the effect of maintaining balanced strategic control on not-for-profits’ organizational performance. This study used convergent mixed method research design. The study target population was 1475 not-for-profit organizations operating in Nairobi County. The study sample size was 305 strategic leaders from not-for-profit organizations operating in Nairobi County. Simple random sampling procedure was used to select the sample size for this study. Data collection instruments were survey questionnaires for quantitative data and interview guide for qualitative data. Data collection procedure was done through use of research assistants and drop-and-pick strategy was applied in the data collection. For the qualitative data, interviews were conducted by the researcher using face-to-face strategy. Data was processed using SPSS version 21 and Nvivo before it was analyzed by the researcher guided by the specific research objectives and the research hypotheses. The study was confined to not-for-profit organizations operating in Nairobi County in Kenya. The results of this study established that there is significant positive correlation between strategic leadership practices in general and organizational performance in not-for-profit organizations. Specifically, the study findings established positive correlations between determining strategic direction, developing human capital, ethical practices, strategic control and organizational performance. The study, therefore, recommends adoption of strategic leadership practices in not-for-profits since it was found to enhance organizational performance; the study also recommends that not-for-profit leaders find ways in which the practice of determining strategic direction can be used to improve the of not-for-profit organizations; the study also recommends strategic leaders proactive in their practice of developing human capital in order to increase the organizational performance of not-for-profit organizations; the study also recommends further research be carried out on the impact of ethical practices and strategic control which were found to be less significant in influencing organizational performance of not-for-profit organizations in Nairobi County in Kenya.