Strategic Leadership And Performance Of Agricultural Finance Corporation In Kenya

Abstract

This study examined the influence of strategic leadership on the performance of Agricultural Finance Corporation. Strategic leadership, encompassing the establishment of strategic direction, the shaping of organizational culture, the implementation of strategic control mechanisms, and the facilitation of strategic decision-making, was hypothesized to play a pivotal role in enhancing organizational outcomes. The study was grounded in Contingency Theory, Strategic Fit Theory, the Resource-Based View, Stakeholder Theory and The Balanced Scorecard Theory. The study used a descriptive research approach and surveyed 204 AFC employees from different management levels. A simple random approach was also used in the investigation. Standardized questionnaires were used to collect primary data, while AFC's financial reports and other pertinent publications were used to gain secondary data on organizational performance. Strategic leadership drastically affected AFC's performance, according to the results. Improved financial performance, operational efficiency, and customer happiness were observed as outcomes of a clearly articulated and operationally aligned strategic goal. The study also revealed that an organizational culture aligned with strategic objectives fostered higher levels of employee engagement, innovation, and productivity. Moreover, the implementation of robust strategic control mechanisms was shown to be critical for maintaining alignment with strategic goals and ensuring sustained organizational performance. Finally, the study demonstrated that strategic decision-making processes that involved key stakeholders and were informed by comprehensive market analysis and risk assessment contributed significantly to better organizational outcomes. The study summarized that there is a significant positive relationship between strategic direction, organizational culture, strategic control and strategic decision-making on organizational performance within the Agricultural Finance Corporation. These results informed the study's recommendations for how public companies like AFC should improve their performance. As a first step, it was suggested that AFC's top brass should do a better job of communicating the company's long-term objectives to their staff. Secondly, the cultivation of a strong organizational culture that supports strategic objectives was advised, emphasizing the need for continuous innovation and employee engagement. Thirdly, the study suggested strengthening strategic control mechanisms through regular performance reviews and adaptive management practices. Lastly, it was recommended that AFC broaden its strategic decision-making processes to include diverse stakeholder input, thereby ensuring more balanced and effective strategic choices.