Influence of strategic leadership practices on organizational performance: a case of Kenya Revenue Authority

Abstract

The primary aim of this research was to dissect the influence of strategic leadership practices on organizational performance within the context of the Kenya Revenue Authority (KRA). The study was guided by the following specific research objectives: to evaluate the impact of visionary leadership on organizational performance, to assess the role of ethical leadership on organizational performance, to investigate the effect of strategic decision-making on organizational performance, and to analyze the influence of strategic communication on organizational performance. The study was anchored on two theories, namely, Transformational Leadership Theory and Resource-Based View Theory. A descriptive survey design was employed for this study, with a sample size of 186 respondents determined using Krejcie and Morgan's table. Data was collected using a semi-structured questionnaire, and piloting was done with 18 respondents from the KRA Thika branch. Stratified, simple random, and purposive sampling techniques were used. Data analysis was conducted using SPSS version 23.0 and Microsoft Excel, applying both descriptive and inferential statistics. Descriptive statistics were presented through tables, bar charts, and graphs, while inferential statistics were used to establish the relationships between the variables. Findings revealed that all four dimensions of strategic leadership practices visionary leadership, ethical leadership, strategic decisionmaking, and strategic communication positively influenced the organizational performance of KRA. Visionary leadership was found to foster innovation and long term organizational success. Ethical leadership played a key role in maintaining integrity and accountability, boosting both internal efficiency and external stakeholder trust. Strategic decision-making enhanced operational effectiveness by improving resource allocation and risk management. Lastly, strategic communication was crucial for aligning organizational goals with stakeholder expectations and fostering transparency. Conclusions drawn from the study indicated that strategic leadership is a critical determinant of organizational performance, particularly in public sector organizations like KRA. The practices explored in this research visionary leadership, ethical conduct, informed decision-making, and effective communication were fundamental to achieving KRA's performance objectives. The study recommended that KRA continue to strengthen its strategic leadership practices, particularly by investing in leadership training programs that emphasize visionary and ethical leadership. Further studies were suggested to explore the influence of strategic leadership in other public and private sector institutions, including banks and non-governmental organizations (NGOs), for comparative purposes.