INNOVATIVE LEADERSHIP, ORGANISATIONAL CULTURE, REGULATORY FRAMEWORK AND PERFORMANCE OF PENTECOSTAL CHURCHES IN KENYA

Abstract

The centrality of the Church in influencing society cannot be overemphasised. In spite of the crucial role the church plays in positively influencing the Kenyan society, Kenyan Pentecostal churches face performance challenges. Church projects have stalled due to ineffectiveness, inefficient resource use and inadequate economic empowerment. For instance, full Gospel Churches of Kenya do not provide sufficient cash for church activities. Inefficiency of most Kenyan Pentecostal churches has further been associated with slow membership growth. In order to increase performance, church managers constantly strive to improve their leadership styles, whilst assuming that their followers accept them. The current study examined the relationships between innovative leadership, organisational culture, regulatory framework, and performance of Pentecostal churches in Kenya. Specifically, the study sought to determine the relationship between innovative leadership and performance of Pentecostal, the mediating effect of organisational culture, the moderating effect of regulatory framework, and the moderationmediator effect on relationship between innovative leadership and performance of Pentecostal churches in Kenya. The underpinning theories were; Path-Goal Theory, Balanced Score Card Framework, Schein’s Theory of Organisational Culture and Institutional theory. This study adopted positivism philosophy and a cross-sectional survey design. The target population comprised 4,279 Pentecostal churches in Kenya and a sample size of 331 Pentecostal churches. The study used structured questionnaires to collect primary data. The quantitative approach included descriptive and inferential analysis, with SPSS version 28 adopted as the tool for analysis. Study findings revealed a significant positive relationship between innovative leadership and the performance of Pentecostal churches in Kenya. Organisational culture was found to partially mediate this relationship, while the regulatory framework significantly moderated the relationship between innovative leadership and performance. The significant positive interaction term between organisational culture and regulatory framework (B = 0.196, p = 0.048) confirmed a moderated mediation effect on innovative leadership and performance of Pentecostal churches in Kenya. The study recommends that religious governing bodies develop policies promoting innovative leadership practices and supportive organisational cultures. It recommends that church leaders actively implement innovative leadership approaches and engage proactively with regulatory requirements while refining regulatory frameworks to balance oversight with flexibility for innovation. Future research should explore other leadership styles in various religious contexts, investigate specific cultural dimensions, and examine the long-term effects of innovative leadership on church sustainability and community impact.