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Scholars Journal of Economics, Business and Management | Volume-6 | Issue-01
Effect of Strategic Direction and Organizational Culture on Performance of Kenya Cutflower Sector, the Case of Cutflower Firms in Nakuru County
William Kurere, Dr. Simon Kibet Kipchumba
Published: Jan. 30, 2019 | 161 156
DOI: 10.36347/sjebm.2019.v06i01.009
Pages: 63-70
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Abstract
Research on the application of strategic leadership model by Hitt, Ireland, & Hoskisson (1995), in Cutflower sector in Kenya, and how it influences performance in terms of sales, quality and brand equity remain inadequately researched justifying the current study whose main aim was to by assess effect of strategic leadership on performance of Kenya Cutflower Sector, taking the case of Cutflower firms in Nakuru County. The study analyzed two components of strategic leadership; effect of strategic direction and organization culture on performance of flower firms in Nakuru County. The study adopted descriptive research design with target population of thirty-five (35) Chief Executive Officers (CEOs) working in the thirty-five (35) flower firms in Nakuru County. This population was appropriate because of their ability to observe the application of strategic leadership as well as performance of the firms. The study used non-probabilistic purposive sampling technique to arrive at sample size of thirty-five respondents, which is a census of all the CEOs. The study used structured questionnaire as the main data collection tool. Besides, the study employed the Pearson Correlation to test the relationship between each of the elements of strategic leadership model and performance of flower firms. Regression model was used to establish the combined effect of the elements on performance. The analyzed data was useful in understanding how strategic leadership affects flower firms’ performance. The study established that firms’ long term goal and the culture of putting customers first had significant relationship with sales, quality and brand equity as measures of Cutflower firm’s performance. The study recommended that the Department of Horticulture of the Ministry of Agriculture should streamline flower firms’ management to comply with the principal of strategic leadership especially on organizational resource portfolio and organizational culture components that had no positive e