An Empirical Analysis of the Moderating Effect of Organizational Context on the Relationship between Leadership Process and Effectiveness of Freight Forwarding Firms in Nairobi City County, Kenya
DOI:
https://doi.org/10.53819/81018102t4260Abstract
Highly competitive and fast shifting market conditions require business enterprises to possess superior organizational capabilities for success. Previous studies have identified persistent challenges including leadership processes and complex work environments as constraints to organizational success. The freight forwarding sector in Kenya grapples with challenges related to high operational costs, poor co-ordination, and rapid developments in information technology and related insecurity. Literature on organizational leadership has neither addressed nor empirically tested the dimensions of gauging effectiveness of freight forwarding firms. Specifically, there is lack of empirical investigation linking organizational context with leadership process and effectiveness of freight forwarding firms. This study sought to investigate the moderating effect of organizational context on the relationship between leadership process (tactical, strategic, and situational influence) and effectiveness of freight forwarding firms in Nairobi City County, Kenya. Through a mixed methods approach, the study adopted explanatory sequential design anchored on the Balanced Score Card model, Institutional Theory and Structuralism Theory. Target population was 400 freight forwarding firms practicing in Nairobi City County, from which 276 respondents were selected through stratified random sampling. Quantitative data was collected through questionnaires with a response rate of 84% while qualitative data was collected from 10 key informants through in-depth interviews. Descriptive statistics used were frequencies, means and standard deviation, while regression analysis was used to test the study hypotheses. Qualitative data was subjected to thematic analysis. Results established that organizational context has a significant moderating effect on the relationship between leadership process and firm effectiveness. With leadership process viewed through input > processing > output logic, the external environment provides streams of opportunities in terms of inputs, which firms can harness to create competitive advantage and effectiveness. Findings demonstrated the link between leadership process, organizational context, and effectiveness. Management should entrench effective leadership process through active deployment of appropriate influence strategies to generate key capabilities and conducive work contexts. Government policies should promote collaborative approaches among supply chain partners. The study recommends future research to expand the conceptual, methodological, and contextual scope for more representative conclusions.
Keywords: Freight Forwarding Firms, Leadership Process, Organizational Effectiveness, Organizational Context
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