The Incremental Predictive Effects of Strategic Leadership, Digitalisation and External Environment on Sustainable Organisational Performance of State Corporations In Kenya

Abstract

Empirical studies investigating the incremental predictive effects of strategic leadership and other contingent factors on the sustainable performance of public sector organisations in developing countries, are not only limited but at times also yield inconsistent set of findings. Consequently, this study had two objectives. First, to address some of the literature and knowledge gaps associated with the above research stream. Second, was to explore the incremental predictive influences of strategic leadership, external environmental, and digitalisation on the sustainable organisational performance, by conducting a descriptive cross sectional survey targeting 250 state owned corporations in Kenya. According to the study findings the three predictor variables have a significant incremental predictive effect on sustainable organisational performance of these entities. These finding make important contributions across three important levels. First, is to the body of knowledge through testing the predictions of the theories underpinning conceptualisation of this study. Second, the findings have policy implications. Governments in developing countries can rely on empirical evidence arising from this study to inform policies geared towards strengthening the frameworks for managing strategic leadership, digitalisation, environmental contingencies, and sustainable performance within state owned enterprises. Finally, the study contributes to management practice by providing useful insights to practitioners regarding manifestations of the four constructs and their linkages in the context of public sector organisations. Two notable limitations, was that current research relied on a descriptive cross sectional survey design and only targeted state owned enterprises. Future studies can consider using a longitudinal design to determine how the effects size compare under other different contextual settings.