Influence of Leadership Competencies on Implementation of Operational Strategies in Organizations in Kenya: A Case of Geothermal Development Company.

Abstract

Leadership played a pivotal role in shaping organizational direction and strategy execution, especially in the face of challenges posed by dynamic environments and a diverse workforce. The study explored the influence of leadership competencies on the implementation of operational strategies within the Geothermal Development Company (GDC) in Kenya. Drawing upon various theoretical frameworks including Path-Goal Theory, Great Man Theory, Leadership-Member Exchange (LMX) Theory, and Trait Theory, the research delved into the cognitive, emotional, social, and functional competencies of leaders and their impact on strategy realization. The study, employing a descriptive research design, collected data from 78 management staff members of GDC through structured questionnaires. Findings revealed significant positive correlations between leadership competencies and the implementation of operational strategies. Specifically, cognitive competencies, encompassing problem-solving and analytical skills, were found to strongly influence strategy implementation. Emotional competencies, such as self-awareness and relationship management, also played a significant role in fostering a conducive environment for strategy execution. Social competencies, including interpersonal skills and teamwork, positively impacted the coordination and cooperation necessary for successful strategy implementation. Additionally, functional competencies, comprising communication and decision-making abilities, were identified as crucial elements in aligning resources and guiding organizational efforts towards strategic objectives. The regression analysis further validated the significance of leadership competencies in predicting the implementation of operational strategies. Cognitive, emotional, social, and functional competencies collectively explained 61.8% of the variance in strategy implementation within GDC. The study underscored the importance of developing multifaceted leadership competencies tailored to the unique contexts of organizations, especially in the public sector where challenges such as limited resources and diverse roles prevailed. These findings contributed to the existing body of knowledge on leadership and strategy implementation, particularly in the context of public entities like GDC. Practical implications suggested that organizations should invest in leadership development programs that focus on enhancing cognitive, emotional, social, and functional competencies among their leaders to drive successful strategy execution. By understanding and leveraging these competencies, organizations could navigate complexities, overcome barriers, and achieve their strategic objectives effectively.