Impact of Leadership Capability in the Tourism State Corporations in Kenya: The Mediating Role of Strategy Implementation

Miriam Muthoka, Dr. Margaret Oloko, P Prof. Martin Ogutu, Dr. George Orwa

Abstract: Tourism and travel is one of the world’s largest sectors, supporting over 266 million jobs and generating 9.5% globally. The viability of the industry is however under threat in the recent past. It has experienced declining revenue contribution especially to the Kenyan GDP. The main driver of performance of any sector is its capability to transform their strategies into deliverable results. It is however clear from literature that organization’s capabilities have failed hence poor performance due to incapacity to implement their strategies. This is because strategy implementation is critical than strategy formulation. This study sought to provide an opportunity to empirically test the drivers of performance and the mediating role of strategy implementation by looking at organizational leadership capability. The study employed descriptive and cross-sectional research designs. The target population was all the Tourism state corporations in Kenya with the management of these firms being the respondents. A census was carried out due to small nature of the target population. Data collection involved the use of questionnaires which attracted quantitative responses. The data was analyzed using regression analysis. ANOVA test was carried out to test the significance of the model. The findings of the study indicated that that most organizations give room for contingent rewards to its employees. Further results indicated that indicated that Individual characteristics, Idealized influence, Inspirational motivation, Intellectual stimulation and command and Control affect performance of the organization to a great extent. The results also showed that individualized influence, intellectual stimulation and practicing command and control are positively and significantly related to performance of tourism organizations. The regression results indicated that organizational leadership capability was positively correlated to organization performance and it explains 29.1% of the changes in performance of the organizations. Organizational leadership capability was established to have a positive and significant effect on performance in the Tourism state corporations in Kenya. Based on these findings, the study concluded that individualized influence, intellectual stimulation and practicing command and control are positively and significantly related to performance of tourism corporations in Kenya. The study also came to the conclusion that organizational leadership capability has a positive and significant effect on performance in the Tourism state corporations in Kenya. The study recommended that Tourism state corporations in Kenya should have measures to adopt Individual characteristics, Idealized influence, Inspirational motivation, Intellectual stimulation among their leaders and command and Control. Keywords: Performance drivers, strategy implementation, organizational leadership capability, tourism state corporations, Kenya. Title: Impact of Leadership Capability in the Tourism State Corporations in Kenya: The Mediating Role of Strategy Implementation Author: Miriam Muthoka, Dr. Margaret Oloko, P Prof. Martin Ogutu, Dr. George Orwa International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Research Publish Journals

Vol. 3, Issue 2, October 2015 – March 2016

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Impact of Leadership Capability in the Tourism State Corporations in Kenya: The Mediating Role of Strategy Implementation by Miriam Muthoka, Dr. Margaret Oloko, P Prof. Martin Ogutu, Dr. George Orwa