STRATEGIC LEADERSHIP DRIVERS, MANAGEMENT REMUNERATION AND ORGANIZATIONAL PERFORMANCE OF KENYA TEA DEVELOPMENT AGENCY FACTORIES IN KENYA
Loading...
Date
2025-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
Abstract
The tea sector in Kenya is facing substantial challenges, including declining profits, low farmer returns, reduced sales, shrinking market share, and escalating operational costs factors that threaten the industry’s viability. This study examined the effect of strategic leadership drivers on the organizational performance of Kenya Tea Development Agency (KTDA) factories. Specifically, the study sought to assess the relationship between process reviews, human capital development, innovation, internal controls, and organizational performance, and to evaluate the moderating role of management remuneration on these relationships. The research was underpinned by Strategic Leadership Theory, Dynamic Capability Theory, Human Capital Theory, Innovation Diffusion Theory, Control Theory, and Efficiency Wage Theory. The study adopted the positivist research philosophy. A correlational survey research design was employed, targeting 1,817 management employees across 66 KTDA factories. A sample of 318 respondents was drawn using Cochran’s formula and multi-stage sampling to ensure representativeness. Primary data was collected using validated and
pilot-tested questionnaires. Validity was assessed through expert review and Confirmatory Factor Analysis, while reliability was confirmed using Cronbach’s alpha. Descriptive statistics (means, percentages, frequencies, standard deviations) and inferential techniques, including regression and hierarchical analysis, were applied. Hierarchical regression enabled examination of the relationships between independent, dependent, and moderating variables. Findings indicated that process review (β = 1.245, t = 15.481, p < 0.05), innovation (β = 3.933, t = 7.677, p < 0.05), and internal controls (β = 6.539, t = 9.648, p < 0.05) remain strong predictors. However, human capital development showed a negative effect (β = -8.414, t = -7.407, p < 0.05). Additionally, remuneration negatively moderates the relationship (β = -2.502, t = -9.025, p < 0.05). The study concluded that these drivers are critical to enhancing performance and
competitiveness in KTDA factories. It further affirmed the vital role of effective leadership in sustaining organizational growth and efficiency. The study recommends the adoption of robust strategic leadership drivers and competitive remuneration frameworks to promote long-term tea sector sustainability
Description
Dissertation
Keywords
Strategic leadership, management remuneration, organizational performance, Kenya Tea Development Agency (KTDA) factories, leadership drivers, corporate governance, Kenya