Effect of Strategic Leadership on Performance of Manufacturing Firms in China

Abstract

Strategic leadership usually does not come easily in some firms. Strategic leadership needs organizations to reason, act, and impact others in various means that enhance the company's enduring success. The study thus examined the effect of strategic leadership on the performance of manufacturing firms in China. The study adopted the descriptive research design. The target population consisted of managers and employees working in JingHongYi PCB (HK) Co., Limited. Notably, the target population was 330 participants. The data collection instruments consisted of questionnaires. The data were analyzed using both descriptive and inferential statistics. The study findings showed that strategic leadership has a positive effect on the performance of manufacturing firms in China. Given the unstable business environment, good strategic leadership is vital in an organization's decision-making to ensure short-term success and long-term sustainability. Strategic leadership positively affects strategic alignment, which, in turn, has a beneficial impact on firm performance. The study concluded that strategic leadership has a positive and significant effect on performance. The study recommended that organizations consider strategic leadership as one of the key contributors to the success of the organizations. The strategic leadership methods need to be examined and adapted in all manufacturing firms since there is a need for strategic leaders in companies who can explore the opportunities in a turbulent environment. Keywords: Strategic Leadership, Performance, Manufacturing Firms, China