Strategic Leadership Practices And Financial Sustainability Of Service State Corporations In Kenya

Abstract

In Kenya, like any other public institutions, service state corporations suffer from ineffective strategic leadership, poor internal communication, and lack of data-informed decision-making, leading to confusion, resource mismanagement, decreased morale, and diminished trust among employees and stakeholders. Service state corporations overlook strategic leadership practices creating an environment that constrains the potential of state corporations, highlighting an urgent need for transformative change in leadership approaches. The primary objective of this study was to examine the correlation between strategic leadership practices and the financial sustainability of service state corporations in Kenya. Specifically, the study aimed to explore how strategic articulation, strategic intelligence, strategic direction, and professionalism influence sustainability of service state corporations. This study was guided by contingency theory. The research utilized a cross-sectional descriptive research design. Target population was 1396 respondents from 55 service state corporations. Fisher formula was adopted to select a sample size of 384 respondents. Primary data was collected using a questionnaire. Quantitative data was coded into SPSS and analyzed using descriptive analysis and inferential analysis. Data was presented using frequency tables and figures. Ethical considerations were upheld during data collection. The study established that there was a positive and significant relationship between strategic articulation, strategic intelligence, strategic direction, professionalism and financial sustainability of service state corporations. The study recommended that organizations should cultivate an environment that emphasizes strategic articulation, ensuring that every member of the corporation understands the organization's mission and vision. Moreover, fostering a culture of strategic intelligence is paramount; leaders should encourage data-driven decision-making and facilitate ongoing analyses of market trends and emerging challenges. By providing continual professional development opportunities, organizations can cultivate professionalism among employees, enhancing their capacity to meet strategic goals. Finally, strategic direction must be clearly communicated and adjusted as necessary to respond to evolving circumstances.