Leadership strategy and organisational resilience among Kenyan listed banks
Keywords:Systemic Disruptive Shocks, Enterprise Resilience, Leadership Strategy, Leadership Theory
This study aimed to test the effect of leadership strategy on the organisational resilience of banks listed on the Nairobi Stock Exchange. The study was anchored on Full-Range Leadership Theory (FRLT) complementarily with meta-leadership as relevant theoretical lenses. The study sampled 277 respondents holding senior managerial positions such as Chief Risk Officers, Managing Directors, Directors of Strategy, Internal Auditors, Heads of Marketing, Heads of Operations and Branch Managers. Data was collected using a self-administered Likert-type online questionnaire. Structural equations modelling was employed for statistical analysis. Partial Least Squares was performed with SmartPLS 3. Results showed that the relationship between leadership strategy and organisational resilience was statistically significant at t-value of 31.665 (p<0.05), with leadership strategy explaining 68.5% of the variance in the organisational resilience of listed banks in Kenya (R2=0.685). The study concluded that leadership strategy significantly predicted bank resilience. The study has affirmed leadership strategy as a novel theoretical concept for explaining organisational resilience to systemic disruptive shocks. Multiple future research directions are proposed. This study advanced leadership strategy as a distinct paradigm in leadership thinking by examining its predictive power on organisational resilience by using systemic disruptive shocks as testing grounds within the context of Kenya’s banking sector.
Aarons, G. A., Green, A. E., Trott, E., Willging, C. E., Torres, E. M., Ehrhart, M. G., & Roesch, S. C. (2016). The roles of system and organisational leadership in system-wide evidence-based intervention sustainment: A mixed-method study. Adm Policy Ment Health, 43(6), 991-1008. https://doi.org/10.1007/s10488-016-0751-4 DOI: https://doi.org/10.1007/s10488-016-0751-4
Aithal, P., & Aithal, S. (2019). A new attitude-behaviour (AB) theory for organisational leadership. International Journal of Management, Technology, and Social Sciences (IJMTS), 4(1), 83-97. https://doi.org/10.47992/IJMTS.2581.6012.0063 DOI: https://doi.org/10.47992/IJMTS.2581.6012.0063
Al-Balushi, M. I. A. (2019). Organisational resilience through quality management: a study on the impact of the implementation of quality management principles on resourcefulness. (Unpublished Doctorate Dissertation). University of Edinburgh. UK.
Alqatawenh, A. S. (2018). Transformational leadership style and its relationship with change management. Verslas: teorija ir praktika, 19(1), 17-24. https://doi.org/https://doi.org/10.3846/btp.2018.03 DOI: https://doi.org/10.3846/btp.2018.03
Ariratana, W., Sirisookslip, S., & Ngang, T. K. (2015). Development of leadership soft skills among educational administrators. Procedia-Social and Behavioral Sciences, 186, 331-336. https://doi.org/10.1016/J.SBSPRO.2015.04.016 DOI: https://doi.org/10.1016/j.sbspro.2015.04.016
Avolio, B. J. (2010). Full range leadership development. Sage Publications. DOI: https://doi.org/10.4135/9781483349107
Bass, B. M., & Avolio, B. J. (1993). Transformational leadership: A response to critiques. In M. M. Chemers & R. Ayman (Eds.), Leadership theory and research: Perspectives and directions (pp. 49–80). Academic Press.
Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017). Organisational culture and leadership style: The missing combination for selecting the right leader for effective crisis management. Business Horizons, 60(4), 551-563. https://doi.org/10.1016/j.bushor.2017.04.001 DOI: https://doi.org/10.1016/j.bushor.2017.04.001
Bradley, A. (2018). Leadership Strategies for Enhancing Employee Engagement. Walden University. MN. https://scholarworks.waldenu.edu/dissertations/5830/
Brandt, E. (2020). Does sustainable leadership make a difference? Examining perceptions of corporate sustainability in the Australian manufacturing sector. (Unpublished Doctoral Dissertation). Charles Sturt University. Australia.
Browder, Z. (2018). leadership during a crisis: an ideological criticism of the walking dead. (MBA). West Texas A&M University. Canyon, Texas
Buckley, R. P., Avgouleas, E., & Arner, D. W. (2020). Three decades of international financial crises: What have we learned and what still needs to be done? (2313-6537). DOI: https://doi.org/10.22617/WPS200171-2
Campos, K. (2016). Dimensions of business resilience in the context of post-disaster recovery in Davao City, Philippines. Review of Integrative Business & Economics Research, 5(1), 168-198. Available at SSRN: https://ssrn.com/abstract=2862400
Chan, L. (2018). Positive organisational leadership: Some recent findings in positive organisational scholarship. digital.sandiego.edu. https://digital.sandiego.edu/solesmalscap/23/
Chanduví, D. A. G., Lama, G. L. R., & Morey, N. D. (2015). Analysis of research literature of professional competency models with a cognitive-motivational approach. Procedia-Social and Behavioral Sciences, 171, 1400-1409. https://doi.org/10.1016/j.sbspro.2015.01.260 DOI: https://doi.org/10.1016/j.sbspro.2015.01.260
Cleveland, M., & Cleveland, S. (2018). Building engaged communities—A collaborative leadership approach. Smart Cities, 1(1), 155-162. https://doi.org/https://doi.org/10.3390/smartcities1010009 DOI: https://doi.org/10.3390/smartcities1010009
Covey, S. R. (2003). The seven habits of highly effective people. Simon and Schuster.
Crowley-Henry, M., & Al-Ariss, A. (2018). Talent management of skilled migrants: Propositions and an agenda for future research. The International Journal of Human Resource Management, 29(13), 2054-2079. https://doi.org/https://doi.org/10.1080/09585192.2016.1262889 DOI: https://doi.org/10.1080/09585192.2016.1262889
Dalcher, D. (2020). Is now a good time for a fundamental rethink of leadership. PM World Journal. Retrieved from https://pmworldjournal.com.
Dartey-Baah, K. (2015). Resilient leadership: A transformational-transactional leadership mix. Journal of Global Responsibility, 6(1), 99-112. https://doi.org/10.1108/jgr-07-2014-0026 DOI: https://doi.org/10.1108/JGR-07-2014-0026
Davidson, R. G. (2018). Leadership strategies to reduce employees' occupational stress. Walden University. MN. https://scholarworks.waldenu.edu/dissertations/5849/
Dele, A. O., Adegboyega, O. I., & Taiwo, A. K. (2015). An empirical investigation of leadership styles and their effect on organisational performance of banks in Ado Ekiti, Nigeria. International Journal of Investment Management and Financial Innovations, 1(2), 49-55. Available at: http://article.aascit.org/file/pdf/9270728.pdf
Dempster, M., & Hanna, D. (2015). Research methods in psychology for dummies. John Wiley & Sons.
Deshwal, V., & Ali, M. A. (2020). A systematic review of various leadership theories. Human resource management in present scenario: Emerging issues & challenges, 8(1), 38-43. https://doi.org/10.34293/commerce.v8i1.916 DOI: https://doi.org/10.34293/commerce.v8i1.916
Do?antan, E., & Ako?lan, M. (2019). Resilience capacity in different types of tourism businesses. Tourism: An International Interdisciplinary Journal, 67(2), 126-146. Retrieved from: https://hrcak.srce.hr/221583
Donkor, F., & Zhou, D. (2019). Complexity leadership theory: A perspective for State-Owned Enterprises in Ghana. International Journal of Educational Leadership and Management, 7(2), 139-170. https://doi.org/https://doi.org/10.17583/ijelm.2019.3647 DOI: https://doi.org/10.17583/ijelm.2019.3647
Dos Santos, R. A. S., Mello, R. B.-d., & Cunha, C. J. C. d. A. (2016). The leadership process during an organisational crisis. Journal of Operations and Supply Chain Management, 9(1), 94. https://doi.org/10.12660/joscmv9n1p94-109 DOI: https://doi.org/10.12660/joscmv9n1p94-109
Essuman, D., Boso, N., & Annan, J. (2020). Operational resilience, disruption, and efficiency: Conceptual and empirical analyses. Int J Prod Econ, 229, 107762. https://doi.org/10.1016/j.ijpe.2020.107762 DOI: https://doi.org/10.1016/j.ijpe.2020.107762
Fener, T., & Cevik, T. (2015). Leadership in crisis management: Separation of leadership and executive concepts. Procedia Economics and Finance, 26, 695-701. DOI: https://doi.org/10.1016/S2212-5671(15)00817-5
Filimonau, V., & De Coteau, D. (2019). Tourism resilience in the context of integrated destination and disaster management (DM). International Journal of Tourism Research, 22(2), 202-222. https://doi.org/10.1002/jtr.2329 DOI: https://doi.org/10.1002/jtr.2329
Folan, L. N. (2019). Defining a research model of leader resilience and evaluating the dispositional effect of resilience on transformational leadership. (Unpublished Doctorate Dissertation). Murdoch University. Perth, Australia.
Fragouli, E. (2020). Leading in crisis & corporate reputation. Risk and Financial Management, 2(1), 62-75. DOI: https://doi.org/10.30560/rfm.v2n2p1
Fusch, P. I., Hall, J. A., & Fusch, G. E. (2018). Empowering internal stakeholders through the dissemination of useful information: A review of crisis management concepts. Journal of Social Change, 10(1), 12. https://doi.org/10.5590/JOSC.2018.10.1.12 DOI: https://doi.org/10.5590/JOSC.2018.10.1.12
Garcia, B. D. (2015). Crisis leadership: The roles university presidents and crisis managers play in higher education-a case study of the state university system of Florida. https://doi.org/10.25148/etd.fidc000120 DOI: https://doi.org/10.25148/etd.FIDC000120
Giddens, J. (2018). Transformational leadership: What every nursing dean should know. Journal of Professional Nursing, 34(2), 117-121. https://doi.org/10.1016/j.profnurs.2017.10.004 DOI: https://doi.org/10.1016/j.profnurs.2017.10.004
Gorze?-Mitka, I. (2016). Shaping of organisational resilience in an unstable world: Possibility or necessity? Problems of Management in the 21st Century, 11(2), 69. DOI: https://doi.org/10.33225/pmc/16.11.68
Hanslik, M. K. (2018). The use of charismatic leadership in crisis management in policing. (Unpublished Doctorate Dissertation). Texas State University. San Marcos, Texas.
Hasham, A. M. A. E. M. (2021). Strategic Recommendations to Mitigate Beirut Explosion Consequences. Multidisciplinary Journal of Health Sciences and Research, 1(1), 1-2. DOI: https://doi.org/10.31586/health001
Hill, A. C. (2016). A case study in a superintendent’s leadership under duress. (Unpublished Doctorate Dissertation). Northern Michigan University. Michigan, USA.
Hsieh, J. Y., & Liou, K. T. (2018). Collaborative leadership and organisational performance: Assessing the structural relation in a public service agency. Review of Public Personnel Administration, 38(1), 83-109. https://doi.org/10.1177/0734371X15623619 DOI: https://doi.org/10.1177/0734371X15623619
Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2014). Strategic management: concepts and cases: competitiveness and globalisation (8th ed., Vol. 201). South-Western Cengage Learning.
Johannessen, J., & Stokvik, H. (2019). 10 strategies for thinking creatively', evidence-based innovation leadership. Evidence-Based Innovation Leadership, 173–196. https://doi.org/10.1108/978-1-78769-635-820181011 DOI: https://doi.org/10.1108/978-1-78769-635-820181011
Johannessen, S. O. (2018). Strategies, leadership and complexity in crisis and emergency operations (1st ed.). Routledge. DOI: https://doi.org/10.4324/9781315713038-1
Johansson, C., & Bäck, E. (2017). Strategic leadership communication for crisis network coordination. International Journal of Strategic Communication, 11(4), 324-343. https://doi.org/10.1080/1553118X.2017.1341889 DOI: https://doi.org/10.1080/1553118X.2017.1341889
Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits-self-esteem, generalised self-efficacy, locus of control, and emotional stability-with job satisfaction and job performance: A meta-analysis. Journal of applied Psychology, 86(1), 80. DOI: https://doi.org/10.1037/0021-9010.86.1.80
Kimball, B. V. (2019). Disrupted leadership: strategies and practices of leaders in a VUCA world. Pepperdine University. CA. http://search.proquest.com
Kohtakangas, K., Perttula, J., & Syväjärvi, A. (2015). Modelling of leniency in leadership in the face of hardships. International Journal of Leadership Studies, 9(1), 23-43.
Kotter, J. P. (2012). Leading change. Harvard business press. DOI: https://doi.org/10.15358/9783800646159
Krishnan, K. S., Rani, N. S. A., & Suradi, Z. (2018). Exploring types of leadership strategies adopted during and after crises. Asia Proceedings of Social Sciences, 2(3), 62-66. https://doi.org/10.31580/APSS.V2I3.262 DOI: https://doi.org/10.31580/apss.v2i3.262
Lampinen, J. (2020). The true test of leadership is how you lead in times of crisis: Understanding crises in organisations. (MBA). Lab University of Applied Sciences. Finland https://urn.fi/URN:NBN:fi:amk-2020052614041
Ledesma, J. (2014). Conceptual frameworks and research models on resilience in leadership. SAGE Open, 4(3), 215-264. DOI: https://doi.org/10.1177/2158244014545464
Lord, R. G., Day, D. V., Zaccaro, S. J., Avolio, B. J., & Eagly, A. H. (2017). Leadership in applied psychology: Three waves of theory and research. J Appl Psychol, 102(3), 434-451. https://doi.org/10.1037/apl0000089 DOI: https://doi.org/10.1037/apl0000089
Mahdi, H. A. A., Abbas, M., Mazar, T. I., & George, S. (2015). A comparative analysis of strategies and business models of Nike, Inc. and Adidas Group with special reference to competitive advantage in the context of a dynamic and competitive environment. International Journal of Business Management and Economic Research, 6(3), 167-177.
Mansaray, H. E. (2019). The Role of Leadership Style in Organisational Change Management: A Literature Review. Journal of Human Resource Management, 7(1), 18-31. https://doi.org/10.11648/j.jhrm.20190701.13 DOI: https://doi.org/10.11648/j.jhrm.20190701.13
Marcus, L. J., Dorn, B. C., Henderson, J., & McNulty, E. (2015). Meta-Leadership: a framework for building leadership effectiveness. Cambridge, MA: National Preparedness Leadership Initiative.
Marques-Quinteiro, P., Vargas, R., Eifler, N., & Curral, L. (2019). Employee adaptive performance and job satisfaction during organisational crisis: the role of self-leadership. European journal of work and organisational psychology, 28(1), 85-100. https://doi.org/10.1080/1359432X.2018.1551882 DOI: https://doi.org/10.1080/1359432X.2018.1551882
Masood, O., Javaria, K., & Petrenko, Y. (2020). Terrorism activities influence on financial stock markets: an empirical evidence from United Kingdom, India, France, Pakistan, Spain and America. Insights into Regional Development, 2(1), 443-455. https://doi.org/10.9770/ird.2020.2.1(4) DOI: https://doi.org/10.9770/IRD.2020.2.1(4)
Mbaya, J. M. (2017). Top management team, leadership strategy, knowledge transfer and performance: A review of literature. IOSR Journal of Business and Management, 19(03), 123-132. https://doi.org/10.9790/487x-190302123132 DOI: https://doi.org/10.9790/487X-190302123132
Megheirkouni, M. (2017). Leadership styles and organisational learning in UK for-profit and non-profit sports organisations. International Journal of Organizational Analysis, 25(4), 596-612. https://doi.org/10.1108/ijoa-07-2016-1042 DOI: https://doi.org/10.1108/IJOA-07-2016-1042
Megheirkouni, M., Amaugo, A., & Jallo, S. (2018). Transformational and transactional leadership and skills approach. International Journal of Public Leadership, 14(4), 245-259. https://doi.org/10.1108/IJPL-06-2018-0029 DOI: https://doi.org/10.1108/IJPL-06-2018-0029
Munyaka, S. A., Boshoff, A. B., Pietersen, J., & Snelgar, R. (2017). The relationships between authentic leadership, psychological capital, psychological climate, team commitment and intention to quit. SA Journal of Industrial Psychology, 43(1), 1-11. https://doi.org/10.4102/sajip.v43i0.1430 DOI: https://doi.org/10.4102/sajip.v43i0.1430
Muthimi, J. K., & Kilika, J. M. (2018). Leadership strategy, behavioural focus and firm performance: A review of literature. International Business Research, 11(11), 143-163. https://doi.org/10.5539/IBR.V11N11P143 DOI: https://doi.org/10.5539/ibr.v11n11p143
Nyenswah, T., Engineer, C. Y., & Peters, D. H. (2016). Leadership in times of crisis: The example of Ebola virus disease in Liberia. Health Syst Reform, 2(3), 194-207. https://doi.org/10.1080/23288604.2016.1222793 DOI: https://doi.org/10.1080/23288604.2016.1222793
Oktari, R. S., Idroes, R., Sofyan, H., & Munadi, K. (2020). City resilience towards coastal hazards: An integrated bottom-up and top-down assessment. Water, 12(10), 2823. https://doi.org/10.3390/w12102823 DOI: https://doi.org/10.3390/w12102823
Pasmore, W., Lafferty, K., & Spencer, S. (2009). Developing a leadership strategy: A critical ingredient for organisational success. Greensboro: Center for Creative Leadership. https://www.ccl.org/wp-content/uploads/2016/09/developing-leadership-strategy-center-for-creative-leadership.pdf
Pasmore, W. A., & Woodman, R. W. (2017). The future of research and practice in organisational change and development. In research in organisational change and development (Vol. 25). Emerald Publishing Limited. DOI: https://doi.org/10.1108/S0897-301620170000025001
Pulungan, S., Daihani, D. U., & Arafah, W. (2018). The influence of firm strategy and organisational resilience to technology orientation and it’s implication to company performanceof coal mining company in Indonesia. International Journal of Business and Management Invention (IJBMI), 7(11), 62-73. www.ijbmi.org
Saltz, M. E. (2017). Crisis leadership and complex crises: a search for competencies. (Unpublished Doctorate Dissertation ). Naval Postgraduate School Monterey, United States.
Sarstedt, M., Hair, J., Cheah, J.-H., Becker, J.-M., & Ringle, C. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal (AMJ), 27(3), 197-211. https://doi.org/10.1016/j.ausmj.2019.05.003 DOI: https://doi.org/10.1016/j.ausmj.2019.05.003
Sayaseng, S. (2020). Evidence of effective financial crisis management from South Korea: An example for other regions. Society and Economy, 42(1), 21-38. https://doi.org/10.1556/204.2020.00002 DOI: https://doi.org/10.1556/204.2020.00002
Siddiqui, A. T. (2017). Can employee training and development increase organisational resilience against economic crises? International Journal of Managerial Studies and Research, 5(4), 78-82. https://doi.org/10.20431/2349-0349.0504011 DOI: https://doi.org/10.20431/2349-0349.0504011
Sohrabi, C., Alsafi, Z., O'Neill, N., Khan, M., Kerwan, A., Al-Jabir, A., Iosifidis, C., & Agha, R. (2020). World Health Organization declares global emergency: A review of the 2019 novel coronavirus (COVID-19). Int J Surg, 76(2020), 71-76. https://doi.org/10.1016/j.ijsu.2020.02.034 DOI: https://doi.org/10.1016/j.ijsu.2020.02.034
Steeger, J.-P. (2017). Leadership of the future: Skills and practices for better performance. C. E. Managers. firstname.lastname@example.org
Stilwell, R. A., & Pasmore, W. A. (2016). Change leader behavior inventory: Development and validation of an assessment instrument. The Journal of Applied Behavioral Science, 52(4), 373-395. https:/doi.org/10.1177/0021886316663406 DOI: https://doi.org/10.1177/0021886316663406
Stoverink, A. C., Kirkman, B. L., Mistry, S., & Rosen, B. (2020). Bouncing back together: Toward a theoretical model of work team resilience. Academy of management review, 45(2), 395-422. https://doi.org/10.5465/amr.2017.0005 DOI: https://doi.org/10.5465/amr.2017.0005
Suryaningtyas, D., Sudiro, A., Eka, T. A., & Dodi, I. W. (2019). Organisational resilience and organisational performance: examining the mediating roles of resilient leadership and organisational culture. Academy of Strategic Management Journal, 18(2), 1-7. Retrieved from: https://www.abacademies.org/articles/organizational-resilience-and-organizational-performance-examining-the-mediating-roles-of-resilient-leadership-and-organizational-8077.html
Taber, K. (2018). The use of Cronbach's alpha when developing and reporting research instruments. Sci. Educ, 48(6), 1273-1296. https://doi.org/10.1007/s11165-016-9602-2 DOI: https://doi.org/10.1007/s11165-016-9602-2
Trusler, I. (2018). The relationship between self-leadership and shared leadership on team performance. (Unpublished Doctorate Dissertation ). University of Pretoria. South Africa
Turgeon, P. E. (2019). Identifying the leadership skills needed to develop the competencies to lead in a postcrisis organisation: A delphi study. (Unpublished Doctorate Dissertation). Brandman University. USA.
Ulfig, Y. M. (2019). Leadership strategies for increasing employee engagement in the service industry. Walden University. MN. https://scholarworks.waldenu.edu/dissertations/6694/
Vaughn, G. J., Sugerman, K. S., & Furman, M. I. (2020). The power and importance of leadership in a crisis. NEJM Catalyst Innovations in Care Delivery, 1(4). https://doi.org/10.1056/CAT.20.0314 DOI: https://doi.org/10.1056/CAT.19.1111
Vergauwe, J., Wille, B., Hofmans, J., Kaiser, R. B., & De Fruyt, F. (2018). The double-edged sword of leader charisma: Understanding the curvilinear relationship between charismatic personality and leader effectiveness. J Pers Soc Psychol, 114(1), 110-130. https://doi.org/10.1037/pspp0000147 DOI: https://doi.org/10.1037/pspp0000147
Ward, T. (2019). Leadership strategies for increasing employee productivity in the banking industry. Walden University. MN. https://scholarworks.waldenu.edu/dissertations/7350/
How to Cite
Copyright (c) 2022 Eltigani Mohamed Ahmed
This work is licensed under a Creative Commons Attribution 4.0 International License.
© 2023 retained by the authors. Licensee BSC International Academy, Istanbul, Turkey. This article is an open-access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).