Influence of Leadership Competencies On Implementa
Influence of Leadership Competencies On Implementa
Influence of Leadership Competencies On Implementa
APA CITITATION: Okumu, J. A., & Litunya, R. (2024). Influence of Leadership Competencies on
Implementation of Operational Strategies in Organizations in Kenya: A Case of Geothermal
Development Company. International Journal of Social Science and Humanities Research
(IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p), 2(2), 113–128.
https://doi.org/10.61108/ijsshr.v2i2.101
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Research Bridge Publisher, International Journal of Social Science and Humanities Research, Vol. 2, Issue 2,
pp: (113-128), Month: May – August 2024, Available at: https://researchbridgepublisher.com/
1.0 INTRODUCTION
1.1 Background of the Study
Leadership shapes direction by influencing others, contingent on individual traits and
environmental factors (Messick & Krammer, 2014). Effective organizational leadership, coupled
with robust traditions, bolsters strategy execution (Thompson, Strickland, & Gamble, 2004).
Rapid technological changes, workforce diversity, and fierce competition pose ongoing
challenges to management (Jaros, 2007). Feeble leadership can derail even the best strategy, while
strong implementation can salvage a weak one (Mintzberg, 1994). Competent leaders clarify
responsibilities, remove obstacles, and enhance performance (House & Mitchell, 1975).
Operations strategy aligns resources with long-term goals, critical for organizational success
(Mwawasi, Wanjau, & Mkala, 2013). It involves creating a distinctive position through
coordinated activities (Porter, 1996). Operations strategy integrates operations decisions with
broader business objectives (Slack, & Brandon-Jones, 2018), despite its narrower focus (Slack &
Lewis, 2002). NGOs face challenges like limited resources and strategic perspectives in
implementing operational strategies (Scholte, 2004).
Leadership competencies significantly influence project performance, organizational change, and
responsiveness across global, regional, and local contexts. Task-oriented leadership positively
affects project outcomes (Ahmed & Anantatmula, 2017), while a blend of competencies aids
organizational change implementation (Battilana et al., 2010). Leadership competency and
organizational culture enhance responsiveness and revenue in the hospitality industry (Asree et
al., 2010). Strategic leadership competencies are crucial for global firms' success (Maarten &
Mikhail, 2010). In regional contexts, deficiencies in leadership competencies hinder
organizational change success (Smit, 2003), while strategic vision and communication gaps limit
strategy success in Zimbabwe (Mapetere et al., 2012). In Nigeria, pseudo leadership undermines
public sector efficiency (Eliogu-Anenih, 2017), and understanding leadership practices is
essential for effective governance (Ejimabo, 2013). In Kenya, leadership competencies positively
impact state corporation performance (Omulo, 2023; Mwithi et al., 2017), and organizational
leadership influences strategy implementation in the tourism sector (Kyalo et al., 2016). Effective
leadership fosters community and productivity in universities (Mutung’a, 2023). Geothermal
Development Company (GDC) in Kenya aims for global leadership in geothermal energy,
requiring competent leadership to achieve its strategic objectives (Geothermal Development
Company, 2018). GDC's structure includes executive and non-executive board members
overseeing various divisions to manage its operations efficiently.
1.2 Statement of the Problem
Poor leadership competencies have been linked to the dismal performance of many state
corporations, such as Kenya Airways (Juma, Ndwiga, & Nyaga, 2023).; Baruch, 2012).
Operations strategy, crucial for organizational success, involves aligning resources to meet
objectives (Slack, 2015). However, poor implementation of operational strategies has plagued
government institutions, leading to mergers and privatization efforts (Presidential Taskforce on
Parastatal Reforms, 2013). Effective leadership is vital for navigating uncertainties and ensuring
strategy execution (Prestwood & Schumann, 2002). Competent leadership plays a pivotal role in
strategy implementation, influencing organizational performance (Jooste & Fourie, 2009; Barnat,
2014). Studies on commercial banks in Zimbabwe and Geothermal Development Company
(GDC) in Kenya underscore the significance of leadership competencies in strategy execution
(Baluhi, (2022); Omoro, 2016). However, the uniqueness of each corporation demands tailored
approaches to leadership (Mwithi et al., 2017). Despite extensive research on leadership styles, a
gap exists in understanding leadership competencies' impact on strategy implementation,
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especially in public entities with varied roles and funding (Mwithi et al., 2017). Thus, this study
focuses on exploring leadership competencies' influence on strategy realization within
Geothermal Development Company.
1.3 Objectives of the Study
The General and Specific objectives that guided the study were:
1.3.1 General Objective of the Study
The general objective of the study was to assess the influence of leadership competencies on
implementation of operational strategies in organizations in Kenya: a case of Geothermal
Development Company.
1.3.2 Specific Objectives of the Study
i. To establish the influence of cognitive competencies on implementation of operational
strategies in organizations in Kenya
ii. To determine the influence of functional competencies on implementation of operational
strategies in organizations in Kenya
iii. To evaluate the influence of social competencies on implementation of operational
strategies in organizations in Kenya
iv. To assess the influence of emotional competencies on implementation of operational
strategies in organizations in Kenya.
1.4 Research Questions
This research study answered the following questions:
1. What is the influence of cognitive competencies on implementation of operational strategies
in organizations in Kenya?
2. What is the influence of functional competencies on implementation of operational strategies
in organizations in Kenya?
3. What is the influence of social competencies on implementation of operational strategies in
organizations in Kenya?
4. What is the influence of emotional competencies on implementation of operational strategies
in organizations in Kenya?
1.4 Scope of Study
The study focused on the influence of leadership competencies on implementation of operational
strategies in organizations in Kenya: a case of Geothermal Development Company presenting
both conceptual and contextual scope. The study was conducted on the management staff in the
seven divisions of Geothermal Development Company, Nairobi Headquarters at Kawi House
South C Bellevue Popo Lane. The study included all the management staff totaling to 159, based
in the headquarter offices and those who provide field support to the regions but are based at the
Nairobi Headquarters. This study took a period of 6 months.
2.0 LITERATURE REVIEW
2.1 Theoretical Framework
A theory is a generalization about a phenomenon, an explanation of how or why something
occurs (Takač 2008). Theories describe, explain, predict, or control human phenomena in a
variety of contexts. According to McMillan and Schumacher (2010), a theory is an explanation, a
systematic account of relationships among phenomena. This study is guided by the Path-Goal
Theory, Great Man Theory, Leadership-Member Exchange (LMX) Theory and Trait Theory.
Each theory is stated, explained, and related to the study.
2.1.1 Path-Goal Theory:
Path-Goal Theory, developed by Robert House in 1971, posits that leadership style should match
the needs and context, focusing on motivating followers to achieve goals (EPM, 2019; Northouse,
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2016). Leaders clarify goals, remove obstacles, and provide support, aligning behavior with
subordinate characteristics and environmental factors (Northouse, 1999). The theory emphasizes
flexibility, transparency, inspiration, and goal-oriented leadership (Panetta, 2012; Lloyd-Walker
& Walker, 2011; Harris, 2010; Northouse, 1999). It underscores the importance of recognizing
and rewarding employee efforts to sustain motivation (House, 1999).
2.1.2 Great Man Theory:
The Great Man Theory, popularized by Thomas Carlyle, asserts that leaders possess innate
qualities enabling them to lead effectively (Organ, 1996). Leaders are seen as heroes with unique
traits like charisma, intuition, and courage (Northouse, 1999). This theory suggests that leadership
qualities are inherent and stable across different contexts, with examples drawn from historical
figures (Northouse, 1999).
2.1.3 Leadership-Member Exchange (LMX) Theory:
The LMX Theory, proposed by Graen, highlights the differential treatment of subordinates by
leaders, resulting in in-group and out-group distinctions (Northouse, 1999). Leaders develop
personalized relationships with in-group members, providing them with resources and support
(Northouse, 1999). This theory emphasizes trust, mutual respect, and obligation between leaders
and followers, influencing their roles and interactions within the organization.
2.1.4 Trait Theory:
The Trait Theory identifies specific characteristics associated with effective leadership, including
achievement drive, honesty, self-confidence, and emotional maturity (Northouse, 2016). Scholars
attempt to predict leadership effectiveness based on physiological, demographic, personality, and
social traits (Northouse, 2016). This theory provides insight into evaluating and developing
leadership qualities, aiding managers at all organizational levels (Northouse, 2016)..
2.2 Conceptual framework
Turner et al., (2015) established a conceptual framework as the collection of distinct principles
and concepts adapted from interconnected study disciplines and applied to constitute successive
presentations
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Functional Competencies:
• Communication Skills
• Managerial Abilities
• Decision Making
Emotional Competencies
• Self-awareness
• Self-management
• Relationship Mgmt.
•
Independent Variables
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2.4 Empirical Literature Review
This section discusses past studies according to the context of this study. The section reviews
literature on the influence of leadership competencies on implementation of operational strategies
in organizations in Kenya: a case of Geothermal Development Company, Kenya. According to
Kothari (2004), the review of similar studies is used along with empirical data collected. The
review of empirical literature plays a key role in establishing research gaps upon which a study can
aim to build on. Several studies have explored the influence of leadership competencies on various
aspects of organizational performance. Achoch, Gakure, and Waititu (2014) found that self-
awareness leadership competencies significantly influence leader effectiveness and follower
satisfaction. Khan et al. (2012) discovered a significant relationship between cognitive leadership
competencies and employees' organizational commitment. Moore and Rudd (2011) identified
cognitive competencies as crucial among other leadership skill areas. Spendlove (2007) reported
the significant impact of leadership competencies on the survival and development of universities
and colleges. Bwoma (2011) found that leadership competencies strongly influence the
performance of youth group projects. Sabir et al. (2012) revealed a strong positive correlation
between social leadership competencies and employee performance, indicating the importance of
ethical values in leadership. These findings emphasize the critical role of leadership competencies
in organizational success and performance improvement.
2.5 Critique of existing Literature
A synthesis of prior research (Omai et al., 2018; Akbarpour & Aghabeygzadeh, 2011; Younus et
al., 2014; Oladele et al., 2017; Isola & Akanni, 2015; Baum et al., 2006; Ebaid, 2009; García-
Teruel & Martínez-Solano, 2008; Pouraghajan et al., 2012; Habib et al., 2016; Bokhari & Khan,
2013; Aziz & Abbas, 2019; Chen, 2014; Opungu, 2016; Ater, 2017; Githire & Muturi, 2015;
Muchiri et al., 2016) explores the relationship between financial structure and firm performance.
Notably, a dearth of research on non-financial firms listed on the Nairobi Securities Exchange is
evident, with limited focus on short-term debt, long-term debt, retained earnings, and share
capital's impact, along with firm size as an intervening factor. Methodological inconsistencies,
including data types, research designs, and sampling methods, further limit the generalizability of
findings for policy formulation.
From the findings, majority of the respondents agreed with the statements that: they at times
complete a 360-degree feedback, in which I evaluate my performance and then match it up against
the opinions of my boss, peers, and direct reports at a mean of 3.816, they recognize how my
feelings affect my subjects and their job performance at a mean of 4.034, they know their
limitations and strengths as they perform their leadership duties at a mean of 3.928, they maintain
a positive outlook despite setbacks at a mean of 3.937, they easily make the transition from
reaction to response in difficult situations that act as a setback in my leadership roles at a response
rate of 2.884, they show consistency in words and actions by keeping promises and avoid lip
service through portraying the stated standards of ethical behavior at a mean of 4.167, they lead by
example thus ensure and maintain confidentiality where required at a mean of 3.321, they
encourage good inter-personal relationships, co-operation and participation between team
members and other teams at a mean of 4.020 and they take responsibility and ownership for
performing the tasks and problems without passing the buck at a mean of 3.615. From the findings,
self-awareness, self-management and relationship management positively affects the
implementation of operational strategy.
4.2.3 Social Competencies
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This study sought from the respondents on the level of agreement on the statements relating to the
influence of social competencies on implementation of operational organizational strategies and
the findings are summarized on the table below:
Table 4.3 Social Competencies
Statement Mean Std.
Deviation
I understand and can effectively use interpersonal and group 3.615 1.488
communication skills in different situations
I Recognize and reward individual team members for their successes to 2.794 1.498
boost their self-confidence
I encourage good inter-personal relationships, co-operation and 4.846 0.626
participation between team members and other teams
I do check and clarify own understanding of team members’ diverse views, 3.500 1.137
feelings, and cultures to create opportunities for the diverse team members
to learn about, as well as from, each other.
I assist team members to make their jobs more meaningful and challenging 3.628 1.239
and relate their performance objectives with team and organizational
strategies
I assist in redesigning work processes and restructure the organization to 3.525 1.543
empower team members to accept more responsibility and work across
organizational boundaries
The above study findings shows that majority of the respondents agreed with the statements that:
they understand and am able to effectively use interpersonal and group communication skills in
different situations at a mean of 3.615, they recognize and reward individual team members for
their successes to boost their self-confidence at a mean of 2.794, they encourage good inter-
personal relationships, co-operation and participation between team members and other teams at a
mean of 4.846, they do check and clarify own understanding of team members’ diverse views,
feelings, and cultures to create opportunities for the diverse team members to learn about, as well
as from, each other at a mean of 3.500, they assist team members to make their jobs more
meaningful and challenging and relate their performance objectives with team and organizational
strategies at a mean of 3.638 and they assist in redesigning work processes and restructure the
organization in order to empower team members to accept more responsibility and work across
organizational boundaries at a mean of 3.525. The findings shows that the implementation of
operational strategies is influenced by interpersonal skills, cross-cultural abilities and team
working abilities which are some of the elements of social competencies.
4.2.4 Functional Competencies
This study sought to find the level of agreement of the respondents on statements relating to the
influence of cognitive competencies on implementation of operational organizational strategies
which findings were presented in the table below:
Table 4.4 Functional Competencies
Statement Mean Std.
Deviation
I do communicate clearly to individuals and teams what is expected of 4.301 1.728
them, how they are doing and where they fit into the bigger picture
I value two-way communication and listening 3.928 0.906
I always gather information about the future of the organization (e.g. the 3.994 1.099
changing organizational environment, new customer benefits, new
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products, future competition, changing technology)
I demonstrate the capacity to conceptualize by identifying themes, trends 3.891 1.138
and interrelationships as well as recognize the connections between them
for better decision making
I Develop more than one alternative route to bring about desired change or 4.038 0.993
achieve future strategic goals and objectives (futuristic) and encourage
learning by exploring the relationships between the alternative strategies
I have built a culture in which decision-making through analyses of 3.739 0.970
alternative plans is actively encouraged in meeting the demands of a
dynamic environment
From the table above, the study revealed that majority of the respondents agreed with the
statements that: they do communicate clearly to individuals and teams what is expected of them,
how they are doing and where they fit into the bigger picture at a mean of 4.301, they value two-
way communication and listening at a mean of 3.928, they always gather information about the
future of the organization (e.g. the changing organizational environment, new customer benefits,
new products, future competition, changing technology) at a mean of 3.994, they demonstrate the
capacity to conceptualize by identifying themes, trends and interrelationships as well as recognize
the connections between them for better decision making at a mean of 3.891, they develop more
than one alternative route to bring about desired change or achieve future strategic goals and
objectives (futuristic) and encourage learning by exploring the relationships between the
alternative strategies at a mean of 4.038 and they have built a culture in which decision-making
through analyses of alternative plans is actively encouraged in meeting the demands of a dynamic
environment. The findings indicated the presence of a positive influence of communication skills,
managerial abilities and decision making which are main indicators of functional capabilities, on
the implementation of operational strategies.
4.4.5 Implementation of Operational Organizational Strategies
The researcher sought from the respondents on their level of agreement with the statements
relating to implementation of operational organizational strategies and the findings were
summarized as below:
The table above presents a combined effect results of Analysis of Variance (ANOVA) which had a
significance of 0.000, which is less P-Value of 0.05. This shows that the cognitive competencies,
emotional competencies, social competencies and functional competencies significantly predict
implementation of operational strategies.
Table 4.9: Multiple Regression Coefficients of leadership competencies and implementation
of operational strategies
Model Unstandardized Standardized t Sig.
coefficients coefficient
B Std. error beta
(Constant) 2.017 .627 1.024 .000
Cognitive Competencies .003 .035 .006 .073 .001
Emotional Competencies .355 .080 .208 1.281 .000
Social Competencies .144 .063 .222 2.270 .036
Functional Competencies .385 0.92 .473 5.126 .025
a. Dependent variable: implementation of operational strategies
Y = α + β1X1+ β2X2 + β3X3 + β4X4 +ε
Y = 2.017 + 0.003X1+ 0.355X2 + 0.144X3 + 0.385X4 +ε
The results for regression had a constant term significance of 0.000, which is less than P-Value of
0.05 implying that the constant term was significant. The significant levels of the independent
variables were as follows: cognitive competencies were 0.001 with a coefficient of 0.003,
emotional competencies were 0.000 with a coefficient of 0.355, social competencies were 0.036
with a coefficient of 0.144 and functional competencies were 0.025 with a coefficient of 0.385,
which are less than P-Value of 0.05. These findings indicate that Leadership competencies
significantly predict implementation of operational strategies
5.0 CONCLUSION AND RECOMMENDATIONS
5.1 Summary of the Study
This study aimed to assess the influence of leadership competencies on operational strategy
implementation in organizations, focusing on Geothermal Development Company in Kenya.
Specific objectives delved into cognitive, functional, social, and emotional competencies. The
research employed a descriptive design, targeting 159 management staff, with a sample size of
114. Questionnaires were administered, yielding a response rate of 68.4%. Data analysis utilized
regression models, revealing significant relationships between competencies and strategy
implementation. The model summary indicated a 61.8% variation in strategy implementation
influenced by competencies. ANOVA results further supported the predictive power of
competencies, with a significance level of 0.000. Regression coefficients showed significant
effects of cognitive, emotional, social, and functional competencies on strategy implementation.
5.2 Conclusion of the Study
This study sought to establish the influence of leadership competencies on implementation of
operational strategies in organizations in Kenya. All the leadership competencies under study that
included; cognitive competencies, emotional competencies, social competencies and functional
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competencies were found to have an influence on the implementation of operational strategies.
They all had a strong positive correlation with implementation of operational strategies. The
coefficient determination of the model summary also indicated a strong variation of the influence
on implementation of operational strategies in Kenya. There was noticed strong significant value
influence on implementation of operational strategies in Kenya.
5.4 Recommendations
Based on the study findings, it is recommended that Geothermal Development Company invests in
leadership development initiatives aimed at enhancing cognitive, emotional, social, and functional
competencies among its management staff. Additionally, ongoing training and workshops focusing
on these competencies should be conducted to ensure continuous improvement. Furthermore,
future research could explore the specific mechanisms through which each competency influences
strategy implementation to provide deeper insights for organizational improvement.
5.6 Areas for further Research
The study established that the cognitive competencies, emotional competencies, social
competencies and functional competencies influence implementation of operational strategies in
organizations in Kenya at a combined effect of 63.8%, evidence that the influence of 36.2% is due
to other factors. Further studies need to be conducted to establish which are these other factors
that influence implementation of operational strategies.
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