INFLUENCE OF STRATEGIC LEADERSHIP PRACTICES ON FINANCIAL PERFORMANCE OF STATE CORPORATIONS A CASE OF KENYA ELECTRICITY TRANSMISSION COMPANY LIMITED.

Abstract

The study aims to establish the influence of strategic leadership practices on the financial performance at KETRACO with specific objectives being to examine how strategic planning and organization resources affect financial performance. The findings will be used as a reference point to other researchers in the same field. The study findings will be beneficial to the foundation of future studies and provided a critical examination and the knowledge generated by this study will enable scholars to improve and develop a better understanding of the subject. The study was anchored on adaptive leadership theory and reinforced by trait leadership theory. The study adopted a descriptive research design with a target population of 385 respondents. Stratified proportion sampling was used to select 121 respondents. Questionnaires were used for data collection, and a pilot study was conducted on the questionnaires. Data were analyzed using descriptive statistics and inferential statistics. The study established a strong positive relationship between the variables (r= 0.548, p=0.000), and that strategic planning significantly influences financial performance. The regression analysis revealed a relationship R = 0.302 which showed a moderate correlation and revealed that organization resources and financial performance are significantly connected, the study established a strong positive relationship between the variables (r= 0.302, p=0.004). The study concludes that strategic planning statistically and significantly affects financial performance and that there is a positive relation between organization resources and the variations in financial performance can be explained by other study variables. It is recommended that management should develop and formulate guidelines, governing structure, and strategic plans for effective implementation of organizational goals and objectives. A further study on strategic leadership practices and financial performance in state corporations in Kenya whereby the study should seek to provide more insights.