Effects of Leadership Styles on Implementation of Organization Strategic Plans in Small and Medium Enterprises in Nairobi

Similar documents
THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT AND DIVIDEND PAYOUT RATIO OF FIRMS LISTED IN NAIROBI SECURITIES EXCHANGE

SPSS Guide: Regression Analysis

Role of Vocational Education on Managerial Career Development in Three to Five Star Hotels in Kenya

Factors Influencing Compliance with Occupational Safety and Health Regulations in Public Hospitals in Kenya: A Case Study of Thika Level 5 Hospital

Selected Factors Influencing Effective Implementation of Constituency Development Fund (CDF) Projects in Kimilili Constituency, Bungoma County, Kenya

in nigerian companies.

Factors Affecting Implementation of School Feeding Programme in Public Primary Schools in Kenya: A Survey of Emuhaya Sub-County, Kenya

Influence of Aggressivenessand Conservativenessin Investing and Financing Policies on Performance of Industrial Firms in Kenya

Factors affecting teaching and learning of computer disciplines at. Rajamangala University of Technology

Performance Appraisal System of the Academics of Public and Private Universities of Bangladesh: An Empirical Study

Sarah Siambi 1, Bichanga Walter Okibo 2 ISSN

Running Head: HUMAN RESOURCE PRACTICES AND ENTERPRISE PERFORMANCE. Pakistan. Muzaffar Asad. Syed Hussain Haider. Muhammad Bilal Akhtar

KEYWORDS: Value chain, Accounting, Information, System, Decision Making

Chapter Seven. Multiple regression An introduction to multiple regression Performing a multiple regression on SPSS

Introduction. Research Problem. Larojan Chandrasegaran (1), Janaki Samuel Thevaruban (2)

Performance appraisal politics and employee turnover intention

Multiple Regression in SPSS This example shows you how to perform multiple regression. The basic command is regression : linear.

Barriers & Incentives to Obtaining a Bachelor of Science Degree in Nursing

Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 1, No.5; January 2012

MULTIPLE REGRESSION ANALYSIS OF MAIN ECONOMIC INDICATORS IN TOURISM. R, analysis of variance, Student test, multivariate analysis

EFFECT OF REAL ESTATE INVESTMENT ON REVENUE IN KISII COUNTY, KENYA

Simple linear regression

Servant Leadership Practices among School Principals in Educational Directorates in Jordan

Effectiveness of Performance Appraisal: Its Outcomes and Detriments in Pakistani Organizations

THE INFLENCE OF PRINCIPALS LEADERSHIP STYLES ON SCHOOL TEACHERS JOB SATISFACTION STUDY OF SECONDRY SCHOOL IN JAFFNA DISTRICT

ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS OCTOBER 2013 VOL 5, NO 6 Abstract 1. Introduction:

King Saud University. Deanship of Graduate Studies. College of Business Administration. Council of Graduate Programs in Business Administration

The Impact of Affective Human Resources Management Practices on the Financial Performance of the Saudi Banks

DEPARTMENT OF PSYCHOLOGY UNIVERSITY OF LANCASTER MSC IN PSYCHOLOGICAL RESEARCH METHODS ANALYSING AND INTERPRETING DATA 2 PART 1 WEEK 9

Chapter 13 Introduction to Linear Regression and Correlation Analysis

Effects of Operational Factors on Organizational Performance in Kenyan Insurance Industry

Determinants of Employee Engagement in the Banking Industry in Kenya; Case of Cooperative Bank

RECRUITERS PRIORITIES IN PLACING MBA FRESHER: AN EMPIRICAL ANALYSIS

The importance of using marketing information systems in five stars hotels working in Jordan: An empirical study

Center for Promoting Ideas, USA

HYPOTHESIS TESTING: CONFIDENCE INTERVALS, T-TESTS, ANOVAS, AND REGRESSION

A STUDY ON MOTIVATION AND JOB SATISFACTION OF LANGUAGE TEACHERS AT THE EUROPEAN UNIVERSITY OF LEFKE, ENGLISH PREPARATORY SCHOOL

A COMPARATIVE STUDY OF WORKFORCE DIVERSITY IN SERVICE AND MANUFACTURING SECTORS IN INDIA

Boniface John Wambua 1, Walter B. Okibo 1, Andrew Nyang Au 2 & Sixtus Momanyi Ondieki 1. Kenyatta University of Agriculture and Technology, Kenya

Multiple logistic regression analysis of cigarette use among high school students

The Relationship between Performance Management and Job Motivation of the Staff Working in Petrochemical Company

Impact of Transactional and Laissez Faire Leadership Style on Motivation

Unit 31 A Hypothesis Test about Correlation and Slope in a Simple Linear Regression

Factors Affecting Procurement Performance: A Case of Ministry of Energy

Association Between Variables

Assessing Farmers' Sustainable Agricultural Practice Needs: Implication for a Sustainable Farming System

EMPIRICAL INVESTIGATION OF LEADERSHIP STYLE ON ENHANCING TEAM BUILDING SKILLS

The effect of competence of contractors on the construction of substandard buildings in Kenya

Competence of Head Teachers in Primary School Management in Kenya: An Evaluation of Capacity Building

How To Understand The Effect Of Information System Success On Employee Performance In Kedah

Organizational Factors Affecting E-commerce Adoption in Small and Medium-sized Enterprises

The Effect of Capital Structure on the Financial Performance of Small and Medium Enterprises in Thika Sub-County, Kenya

The Performance Appraisal Policy and Tools Used by the Kenya Teachers Service Commission in Bomet Constituency

IMPACT AND SIGNIFICANCE OF TRANSPORTATION AND SOCIO ECONOMIC FACTORS ON STUDENTS CLASS ATTENDANCE IN NIGERIA POLYTECHNICS: A

EFFECTIVE STRATEGIES OF MANAGING GENERATION Y TEACHERS IN PUBLIC SECONDARY SCHOOLS IN KENYA: THE CASE OF KHWISERO SUB-COUNTY

The Effect of Information Technology (IT) Support on Innovations Concepts: A study of Textile Sector in Pakistan

ABHINAV NATIONAL MONTHLY REFEREED JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT

The Relationship Between Working Capital Management and Profitability of Companies Listed on the Johannesburg Stock Exchange

Fairfield Public Schools

Assessing Employee Satisfaction at the Zimbabwe Open University

SEYED MEHDI MOUSAVI DAVOUDI*; HAMED CHERATI**

P. Mohanraj 3 Assistant Professor in Management Studies Nandha Arts and Science College Erode, Tamil Nadu, India

Regina N. Osakwe 1. Received: December 10, 2014 Accepted: January 8, 2015 Online Published: January 21, 2015

Simple Linear Regression Inference

ASIAN JOURNAL OF MANAGEMENT RESEARCH Online Open Access publishing platform for Management Research

Analysis of the Relationship between Strategic Management and Human Resources Management in Informatics Services Company of Tehran Province

Ranking Barriers to Implementing Marketing Plans in the Food Industry

A Comparative Analysis of Management Information Systems Utilization for Organizational Effectiveness in Colleges of Education in Nigeria

The Relationship Between Information Systems Management and

Lecture Notes Module 1

Impact of Human Resource Practices on Employees Productivity A Comparative Study between Public and Private Banks in India

Evaluation Human Resourches Information System (HRIS) The University Of Bina Darma Using End User Computing Satisfaction (EUCS)

International Journal of Advance Research in Computer Science and Management Studies

MULTIPLE REGRESSION WITH CATEGORICAL DATA

Talent Management Approaches for Restructuring: A Case of Non-Governmental Organizations in Kenya

A Study on Customer Orientation as Mediator between Emotional Intelligence and Service Performance in Banks

A Review of Methods. for Dealing with Missing Data. Angela L. Cool. Texas A&M University

J. Appl. Environ. Biol. Sci., 5(5) , , TextRoad Publication

THE LINK BETWEEN ORGANIZATIONAL CULTURE AND PERFORMANCE MANAGEMENT PRACTICES: A CASE OF IT COMPANIES FROM ROMANIA

Determinants of the Total Quality Management Implementation in SMEs in Iran (Case of Metal Industry)

CRITICAL FACTORS AFFECTING THE UTILIZATION OF CLOUD COMPUTING Alberto Daniel Salinas Montemayor 1, Jesús Fabián Lopez 2, Jesús Cruz Álvarez 3

Research Methods & Experimental Design

Successful joint venture strategies based on data mining

MASTER S DEGREE IN EUROPEAN STUDIES

EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER SATISFACTION AND LOYALTY

JJMIE Jordan Journal of Mechanical and Industrial Engineering

Multiple Regression. Page 24

This chapter discusses some of the basic concepts in inferential statistics.

Principles of Management

Effect of the learning support and the use of project management tools on project success: The case of Pakistan

A STUDY ON CUSTOMER SATISFACTION WITH REFERENCE TO MOBILE SERVICE PROVIDERS IN HYDERABAD (INDIA)

Study on the Working Capital Management Efficiency in Indian Leather Industry- An Empirical Analysis

The Impact of Management Information Systems on the Performance of Governmental Organizations- Study at Jordanian Ministry of Planning

Intercultural sensitivity of students from departments of nursing and healthcare administration. Abstract

Investigating the Relationship between Organizational Environment and Productivity of Organizational Managers

IMPACT OF TQM IMPLEMENTATION ON PRODUCTIVITY AND QUALITY - A STUDY AT GENARAL MOTORS

AN EMPIRICAL STUDY ON THE EFFECT OF INTERNAL MARKET ORIENTATION ON FIRM PERFORMANCE: THE CASE OF COMMERCIAL BANKS IN GHANA.

HKIHRM HR PROFESSIONAL STANDARDS MODEL

E-commerce in Developing Countries. Judy Young School of Information Systems University of Tasmania

Advertising value of mobile marketing through acceptance among youth in Karachi

Transcription:

Online Access: www.absronline.org/journals Management and Administrative Sciences Review Volume 4, Issue 3 Pages: 593-600 May 2015 e-issn: 2308-1368 p-issn: 2310-872X Effects of Leadership Styles on Implementation of Organization Strategic Plans in Small and Medium Enterprises in Nairobi Alex Njuguna Chege 1 *, Dr. Anita Wachira 2, and Dr. Lilian Mwenda 3 1. M.B.A. Student of Business Management and Economics, Department of Business Administration, Dedan Kimathi University of Technology, Kenya 2. Lecturer, Department of Business Administration, School of Business Management and Economics, Dedan Kimathi University of Technology, Kenya 3. Lecturer, Department of Business Administration, School of Business Management and Economics, Dedan Kimathi University of Technology, Kenya The study sought to analyze the effect of leadership styles on implementation of strategic plans in Small and Medium Enterprises (SMEs). Specifically the study: analyzed the effect of autocratic leadership style, assessed the effect of democratic leadership style and evaluated the effect of laissez faire leadership style on implementation of strategic plans in SMEs. Descriptive research design was used. The study population consisted of 4531 SMEs registered by Ministry of Industrialization and Enterprise development. A sample of 354 SMEs was selected using stratified random sampling. A questionnaire composed of open and closed ended questions was used to collect primary data. Quantitative data was analysed using Statistical Package for Social Sciences (Version 21). In addition, a multivariate regression model was generated to assist in determination of the relative importance of each of the three variables to implementation of strategic plans. The regression showed that autocratic leadership had the highest effect of implementation of strategic plans with a coefficient of 0.488, followed by democratic leadership with a coefficient of 0.384 and laissez faire with a coefficient 0.269. The study recommends that organizations should use all the three leadership styles to maximize implementation of strategic plans. Keywords: Implementation of strategic plans, autocratic leadership, democratic leadership, laissez faire leadership INTRODUCTION S mall and Medium Enterprises (SMEs) are considered as the major contributors to the Kenyan economy, employing 75% of the total population (Kamau, 2012). However, such enterprises face challenges as they attempt to became competitive and grow into large *Alex Njuguna Chege, M.B.A. Student of Business Management and Economics, Department of Business Administration, Dedan Kimathi University of Technology, Kenya. E-Mail: alex_chege@yahoo.com 593

companies. As a result, 60% of SMEs in Kenya fail in their first year of operation (Bowen, Morara, and Murethi, 2009). Various studies show that the leadership styles have influence on performance of organizations. Nave (2006), asserts that effective leaders should implement organization strategies to improve on the performance. In the case of Kenyan SMEs, the owner-manager is normally identified as the leader who determines the success or failure of the business. This suggests that the fate of an SME is closely related to the leadership style of the manager and the strategies he/she chooses to implement. Here, strategic plan implementation shapes the performance of core business activities in a strategy-supportive manner. According to Thompson and Strickland (2007), strategic planning is the process for directing organisation resources to achieve the organization strategy. It is therefore necessary to understand the organization current position and the possible avenues through which it can pursue a particular course of action. This is also supported by McNamara (2005), who was of the view that strategic planning determines where the business is going in the next one year, two years or more, how the organisation is going to achieve the strategy and how the organization will know it has not achieved the strategy. Thompson and Strickland (2009), further argue that strategy implementation is primarily an administrative task that involves figuring out workable approaches to executing the strategy and then, during the day-to-day operations, getting people to accomplish their jobs in a strategy supportive and results achieving fashion. Problem Statement Small and medium enterprises adopt strategies to enable them not only to survive, but to succeed in a competitive environment. The strategies adopted act as a guideline of the Small and medium enterprises operations. However, implementation of strategic organization plans remains a major challenge facing organizations. Most studies acknowledge that implementation has become the most significant challenge with only 30% of formulated strategies being implemented in organizations. The effect of management styles on implementation of organization strategic plans has received little attention. Therefore this study analyzed the effect of leadership styles (autocratic leadership style, democratic leadership style and laissez faire leadership style) on implementation of organization strategic plans in small and medium enterprises. Research Objectives i) To analyze the effect of autocratic leadership style on implementation of organization strategic plans in the small and medium enterprises in Nairobi. ii) To assess the effect of democratic leadership style on implementation of organization strategic plans in the small and medium enterprises in Nairobi. iii) To evaluate the effect of laissez faire leadership style on implementation of organization strategic plans in the small and medium enterprises in Nairobi. LITERATURE REVIEW Theoretical Review According to McGregor (1960), theory X and theory Y consists of two alternative set of assumptions. Theory X is an authoritarian style of leadership where Theory X assumes that employees find working unpleasant and usually avoid working if possible. Employees in theory X must be directed and even threatened to deliver in order to achieve the organization goal. Theory X also assumes that employees avoid responsibilities and the employees lacked motivation. Theory Y is a participative style of leadership and theory Y is more likely to have its roots in the recent knowledge of human behavior. Theory Y says that threatening and external controls are not the only ways to make people work better to achieve organizational (Hofstede, 2005). This theoretical model relates to the research as it focuses on two of the variables that were under study, that is, autocratic leadership style (Theory X) and democratic leadership style (Theory Y). However the research extended McGregor theory s contribution to knowledge by examining the effect of Theory X and Theory Y on strategy implementation. 594

Empirical Review Murigi (2013), conducted a study on influence of head teachers leadership styles on pupils performance in Muranga, Kenya and one of the leadership style variables was autocratic leadership style. The measures used in autocratic leadership were punishment, task oriented, commands and supervision. According to findings of the study autocratic leader focused in their managerial role as they were task oriented (mean = 4.9) and getting things done (mean=4.2). The study observed that the autocratic leader motivated the staff through punishment. The study revealed that autocratic leadership was the least significant in influencing performance. Ogbeide and Harrington (2011), studied the relationship among participative management style, strategy implementation, success and financial performance in the food service industry. The study was done in United Stated of America. The measurements used were organizational structure, level of involvement and implementation success. The findings of the study were that higher levels of action plan implementation success for restaurants firms were more likely to use participation in decision making and plan execution. Small firms are likely to use an approach with greater participation than larger firms. Koech and Namusunge (2012), conducted a study on the effect of leadership styles on organization performance. The study was in States Corporation at Mombasa, Kenya. One of the key variables was laissez faire leadership, transactional and transformational leadership style. The result of the study showed that laissez faire leadership is not significantly correlated to organizational performance. Based on the findings the study recommended that manager should discard laissez faire leadership by becoming more involved in guiding their subordinates, managers should formulate and implement effective reward and recognition system. METHODOLOGY Descriptive research design was used. There are 2469 SMEs that are in agro based industry, 1512 SMEs in engineering and construction industry, and 550 SMEs in chemical and mining industry (Ministry of Industrialization and Enterprise Development, 2014). The study focused on 4,531 SMEs in Nairobi. This is because SMEs in Nairobi and its environs have formal procedures or processes that are documented and registered with regulatory government bodies (Ministry of Industrialization and Enterprise Development, 2014). The sample size was determined using Krejcie and Morgan (1970) sampling frame which recommends the appropriate sample for any given population. Given the population above and in accordance with Krejcie and Morgan (1970), formula the sample size of the study was 354. The study applied stratified sampling technique to determine the number of respondents who participated from every category/class. This implies that a sample of 7.8% from within each group in proportions that each group bears to the study population was selected (see Table 1) Krejcie and Morgan (1970) formulae as follows: Where S = required sample size X 2 = the table value of chi-square for 1 degree of freedom at the desired confidence level (3.841). N = the population Size E= precision level at 0.05 N= sample proportion of success P= the population proportion (assumed to be.50 since this would provide the maximum sample size). d= the degree of accuracy expressed as a proportion (.05). INSERT TABLE 1 HERE Data Collection Instruments and Procedure The questionnaire consisted of both open and closed ended questions to allow respondents to express their opinions. The researcher prepared a questionnaire with brief instructions which allowed the respondents to tick their opinion and express their views with regards to the questions. 595

A five point Likert scale was used to answer the statements. The method for collecting the questionnaire was through drop and pick later method. The data collecting instruments addressed the problem of the study and achieve the research objective. FINDINGS AND DISCUSSION The target was 354 SMEs in Nairobi; however, the completed and usable questionnaires were 123 making a response rate of 34.7 percent. The respondents were owners and managers. The study revealed that 71.5% of SMEs under study implement a formal strategic plan. Also the study revealed that (47%) that is 58 out of 123 of the SMEs that implemented formal strategic plans had up to 2-5 years since commencement of their program, 16 % had more than 6 years but less than 10 years, while only one (1%) organization had the experience of above 16 years and only 4 (5%) firms had between 11-15 years of strategic plans implementation. Small and medium enterprises with least (1 year) experience in strategic plans implementation accounted for 31.8 %. This finding indicates the reluctance of SMEs to implement strategic plans. DESCRIPTIVE STATISTICS Autocratic leadership style Autocratic leadership style looked at how business focus on task orientation improved implementation of strategic plan. The results had a mean of 4.2/5, with high supervision improved implementation of strategic plan, the results had a mean of 4.1/5, manager being in control of business operation improved implementation of strategic plan, the results had a mean of 4.0/5, decision making by the owner without consultation improved implementation of strategic plan with a mean of 3.9/5 and use of punishment on employees improved implementation of strategic plan with a mean of 3.7/5. This finding agrees with Murigi (2013), who conducted a study on influence of autocratic leadership style on performance. According to Murigi (2013) autocratic leadership style involves the application of punishment, task oriented, commands and supervision. This implies that autocratic leader focuses in his managerial role and getting things done. Democratic leadership style The study showed the adoption of democratic leadership style where the owner and the employees are involved in the decisions making improved implementation of strategic plan with a mean of 4.2 out of 5, open communication in the business and constant feedback improved implementation of strategic plans with a mean of 4.2 out of 5. Further encouragement of team work improved implementation of strategic plans with a mean of 3.5 out of 5, the owner of the business cares for the well-being of the employees improved implementation of strategic plans with a mean of 3.4 out of 5 and lastly delegation of authority improved implementation of strategic plans with a mean of 3.6 out of 5. This finding concurs with Ogbeide and Harrington (2011) who observed that small firms are likely to use an approach with greater participation in implementation. Laissez faire leadership style From the findings, employees who set their own target improved implementation of strategic plans with a mean of 4.4 out of 5, complete freedom improved implementation of strategic plans with a mean of 4.3 out of 5 and lastly employees solve their own work related problems improved implementation of strategic plans with a mean of 4.1 out of 5. These findings disagree with Chaudhry and Javed (2012) who stated that motivation level in respect of laissez faire is low because of no involvement of the management. INFERENTIAL STATISTICS Analysis of Variance The significance value is.044 which is less than 0.05 thus the model is statistically significant in predicting independent variables (autocratic leadership style, democratic leadership and laissez faire leadership style) this shows that the overall model was significant. INSERT TABLE 2 HERE 596

Regression Analysis In addition, the researcher conducted a multiple regression analysis so as to determine the influence of leadership style on the implementation of strategic plans. The researcher applied the statistical package for social sciences (SPSS) to code, enter and compute the measurements of the multiple regressions for the study. INSERT TABLE 3 HERE The Un-standardized beta coefficients column in Table 3 above were used to obtain the overall equation as suggested in the conceptual framework. When these beta coefficients are substituted in the equation, the model becomes: Y = 1.147 + 0.488X 1 + 0.384 X 2 + 0.269X 3, where Y = implementation of strategic plans, X1 = Autocratic leadership style, X2 = democratic leadership style and X3 = Laissez faire leadership style The study conducted a multiple regression analysis and from the above regression model, holding (autocratic leadership style, democratic leadership and laissez faire leadership style) constant at zero, the implementation of strategic plans will be 1.147. A one unit change in autocratic leadership results to zero point four eight eight (0.488) units increase in implementation of strategic plans; also a one unit change in democratic leadership results to zero point three eight four (0.384) units increase in implementation of strategic plans. Lastly, a one unit change in laissez faire leadership style results to zero point two six nine (0.269) units increase in implementation of strategic plans. This shows that there is a positive relationship between (Autocratic leadership style, democratic leadership style, and Laissez faire leadership style) and implementation of strategic plans. The t-test statistic shows that all the B coefficients of are significant (since p<0.05). INSERT TABLE 4 HERE From the findings 67.6% of implementation of strategic plans is attributed to combination of the independent factors that relate to autocratic leadership style, democratic leadership and laissez faire leadership style investigated in this study. A further 32.4% of implementation of strategic plans is attributed to other factors not investigated in this study. CONCLUSIONS This study establishes that autocratic leadership style had the largest effect on implementation of strategic plans. This study shows that one unit change in autocratic leadership results in 0.488 units increase on implementation of strategic plans. Democratic leadership style was subsequent with a coefficient of 0.384 and lastly laissez faire with 0.269. This study concludes that autocratic leadership, democratic leadership and laissez faire all have a positive effect on implementation of strategic plans. RECOMMEDATIONS The study recommends all the three leadership style depending on the situation in the business to maximize implementation of organization strategic plans. The study recommends autocratic leadership style when focusing on task and when making quick decisions in the business. The study recommends democratic leadership style if a decision is complex so as to involve managers and employees. The study recommends laissez faire in situation where employees have high skills and are capable of working on their own. SUGGESTIONS FOR FURTHER STUDIES While this study successfully examines the variables, it also presents rich prospects for several other areas to be researched in future. This study focused on the SMEs in Nairobi in Kenya. It would be useful to carry out the same type of research across East Africa and beyond and see whether the same results would be replicated. REFERENCE Bowen, M., Morara, M., & Murethi, S. (2009). Challenges among Small and Medium Enterprises in Nairobi. K.C.A Journal of Business Management, 2 (3), 83-107. Chaudhry, A. Q., & Javed, H. (2012). International Journal of Business and 597

Social Science. Impact of Transactional and Laissez Faire Leadership on motivation, 3 (7), 258-264. Hofstede, G. (2005). Essentials of Organization behaviour. New Jersey : Prentice Hall. Kamau, D. (2012). The role of Small Enterprise in House hold and National Economy of Kenya. MBA Project, School of Business, University of Nairobi. Koech, P., & Namusunge, G. S. (2012). Effect of leadership styles on organization performance at state corporation in Kenya. International Journal of Business and Commerce, 2(1), 1-12. Krejcie, R.V., & Morgan, D.W., (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement. McGregor, D. (1960). The Human side of Enterprise. Mc Graw Hills. Primary Education. Masters of Education thesis. University of Nairobi. Nave, D. (2006). The effect of organizational culture and leadership style on Organization Performance. Journal of Management Development, 23(4), 321-338. Ogbeide, G. C., & Harrington, R. (2011). The Relationship among Participative Management Style. International Journal of Management, 50 (10), 1-9. Thompson, A., & Strickland, A. J. (2009). Strategy Management Process. In Strategy Formulation and Implementation. USA: Richard D Irwin. Tompson, A., & Strickland, A. J. (2007). Crafting and Executing Strategy. USA: Richard D. Irwin. Mc Namara, G. (2005). Strategic Management Decision Making. Strategic Planning, 65 (4), 390-395. Ministry of Industrialization and Enterprise Development. (2014). Small and Medium Enterprises in Kenya. Government Printer. Murigi, M. W. (2013). Influence of Head Teacher Leadership Styles on Pupils perforamce in Kenya Certificate 598

APPENDIX Table 1: Sample Size Nature of Business Frequency (F) Percentage % Sample Size (n) Agro based 2469 7.8 193 Engineering and Construction 1512 7.8 118 Chemical and mining 550 7.8 43 Total 4531 354 Table 2: ANOVA Sum of Squares Df Mean Square F Sig. Regression 35.775 2 8.944 15.066.044(a) Residual 13.654 120.594 Total 49.429 122 Table 3: Regression Analysis Results Un-standardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) 1.147 3.93 2.915.000 Autocratic leadership style.488.221.663 1.908.001 Democratic leadership style.384.106.397 3.608.001 Laissez faire leadership style.269.115.192 1.917.003 599

Table 4: Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1.851(a).724.676.77048 Task oriented Supervision Centralized decisions punishment Autocratic Leadership Style Involvement Open communication Team work People oriented Delegation of authority Democratic Style of Leadership Implementation of strategy organization plans -performance overall -business expansion -alignment of goals Little guidance Complete freedom Solved work problems individually Laissez faire Leadership Style Parameters Independent Variables Dependent Variable Figure 1: Operational Framework 600