The Moderating Effect of Legal Factors on the Relationship between Strategic Leadership Practices and Performance of Deposit Taking Saccos In KenYA

Abstract

Strategic leadership practice is imperative in organizations due to uncertainties in the operating environment. Without it an organizations performance may be greatly constrained. The legal framework has an influence on how organizations are administered. The study sought to ascertain the moderating effect of Legal factors on the relationship between strategic leadership practices and performance of Deposit Taking SACCOS in Kenya. A descriptive correlation design was adopted. The study’s population consisted of 42 DTS in Nairobi County and targeted 168 respondents. Data was collected using both close ended questionnaires and an interview guide. Questionnaires were administered on 126 senior managers while a sample of 12 CEO’s who were randomly selected were interviewed. For data analysis, Pearson’s product moment correlation, hierarchical multiple regression and content analysis were employed. The results indicated that legal factors had a significant moderating influence on the relationship between strategic leadership practices and performance of Deposit Taking SACCOS in Kenya. The study recommended that strategic leaders should be alive to legal factors to enhance greater organizational performance.