The Mediating Role of Organizational Transformation on The Relationship Between Strategic Leadership and Performance of Agribusiness Companies Listed at Nairobi Securities Exchange, Kenya

Abstract

Journal ArticleIn the face of continuous shifts in the business landscape and intensifying competition, organizational transformation serves as a critical catalyst, enabling strategic leaders to drive and enhance organizational performance. Studies investigating the relationship between strategic leadership and organizational transformation suggest that their interaction generates significant synergy. However, very little empirical research has been conducted to evaluate the direct relationship between strategic leadership, organizational transformation and performance. This study sought to evaluate the mediating role of organizational transformation on the relationship between strategic leadership and the performance of agribusiness companies listed at the Nairobi Securities Exchange in Kenya. The study was anchored on Transformation Leadership Theory and employed a mixed research method research design. The target population consisted of all the management staff in all the six agribusiness companies listed at the NSE in Kenya. The respondents were the directors, heads of departments or functions, middle-level managers and supervisors, totalling to 120 participants. Data was analyzed by use of descriptive statistics and inferential analysis through multiple regression analysis. The robustness of the model was tested by the use of R2, to test the significance of the model, F- statistic was computed at a 95% confidence level and to determine the significance of the variables, p-values were used at 0.05 significance level. Baron and Kenny's four-approach method was used to test the mediating effect of organizational transformation on the relationship between strategic leadership and the performance of agribusiness companies listed at the NSE, Kenya. The results indicated that strategic leadership had a significant positive effect on the performance of agribusiness companies listed on the NSE and organizational transformation had a moderate effect on the relationship between strategic leadership and performance