INTEGRATIVE LEADERSHIP STYLE, STRATEGY IMPLEMENTATION, GOVERNMENT REGULATION, AND ORGANISATIONAL PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA”

Abstract

State businesses are essential to Kenya's Vision 2030“which seeks industrialisation and enhanced quality of life. Recent statistics from the Kenya National Treasury reveal subpar performance, characterised by substantial cumulative losses in the 2021/2022 financial year. This research aimed to examine the relationship between integrative leadership style, strategy implementation, government restrictions, and organisational performance within these corporations. The goals included evaluating direct linkages, investigating the mediating impacts of strategy implementation, identifying the moderating effects of government regulations, and analysing the cumulative moderated mediation effect. Utilising the Full Range Leadership Model and additional theories, the research implemented a cross-sectional survey design, gathering data from top management teams of all 52 commercial state corporations in Kenya via purposive sampling, while adhering rigorously to ethical standards during data analysis. The quantitative data was analysed using SPSS version 28. The study results revealed that The Pearson correlation coefficient between integrative leadership style and organisational performance was R = 0.730, with a significance level (p-value) of 0.000. The R Square value was 0.533, indicating that about 53.3% of the variation in organisational performance is attributable to the integrative leadership style. Strategy implementation was identified as a partial mediator in the relationship between integrative leadership style and organisation performance, suggesting that integrative leadership style affects performance both directly and indirectly via successful strategy implementation. The regression analysis showed a strong relationship (R = 0.748), with 55.9% of organisational performance explained by integrative leadership and government regulations. The study confirmed a significant moderated mediation effect, demonstrating that the impact of integrative leadership on organizational performance, as mediated by strategy implementation, is further influenced by the level of government regulations in commercial state corporations in Kenya. The study recommends that commercial state corporations strategically enhance their strategy implementation processes and ensure compliance with government regulations to improve performance. Key actions include refining resource allocation, clearly communicating strategic goals, and fostering an organizational culture that supports effective implementation. Additionally, it emphasizes the importance of aligning internal ethical guidelines with external regulatory standards to create a cohesive framework that promotes both compliance and performance enhancement. By fostering a culture of compliance and ethical conduct in line with legal requirements, leaders can amplify the positive impact of their practices. Proactive engagement with regulatory bodies helps leaders stay informed about policy changes and integrates them into strategic decision-making. This responsiveness not only improves performance but also strengthens accountability and legitimacy. Ultimately, aligning leadership approaches with government regulations enables sustained success and better navigation of complex operational landscapes.”