COLLABORATIVE LEADERSHIP AND PERFORMANCE: DOES ENVIRONMENTAL DYNAMISM MATTER?
Abstract
The study delved into the relationship between environmental dynamism, collaborative leadership, and the performance of organizations and examined the moderating role of environmental dynamism on the link between collaborative leadership and performance. Based on a stratified random sample of insurance companies in Kenya and a Likert-style questionnaire survey involving 217 managers, two hypothesized models linking environmental dynamism, collaborative leadership, and performance were generated and tested quantitatively. The analysis involved descriptive statistics and ANOVA. Findings indicated that overall, environmental dynamism does not significantly moderate organizational performance. However, the results indicated that internal and external environmental dynamism individually influence the relationship between collaborative leadership and performance. These results highlighted the importance for organizational leaders to acknowledge the impact of internal and external environmental changes on their organization's performance. Additionally, they underscore the pivotal role of collaborative leadership in enhancing leaders' abilities to sustain performance. The paper contributes valuable insights by emphasizing that environmental dynamism and collaborative leadership profoundly shape organizational performance.
Keywords: Collaborative Leadership, Environmental Dynamism, Performance, Moderating Effect, Internal and External Factors
CITATION: Ang'ana, G. A., Ongeti , W. J., & Chiroma, J. A. (2023). Collaborative leadership and performance: does environmental dynamism matter?. The Strategic Journal of Business & Change Management, 10 (4), 1472 – 1492. http://dx.doi.org/10.61426/sjbcm.v10i4.2828
Full Text:
PDFReferences
Agrifoglio, R. (2015). Knowledge preservation through community of practice. Springer International. https://doi.org/10.1007/978-3-319-22234-9
Agyapong, A., Zamore, S., & Mensah, H. K. (2019). Strategy and performance: does environmental dynamism matter? Journal of African Business. https://doi.org/10.1080/15228916.2019.1641304
Ang’ana, G. A., & Kilika, J. M. (2022). Collaborative leadership in an organizational context: a research agenda. Journal of Human Resource & Leadership, 6(1). 48–71. https://doi.org/10.53819/81018102t2050
Astley, W.G. & Ven, A.H.V.D. (1983). Central perspectives and debates in organization theory. Administrative Science Quarterly, 2.245-273. https://doi.org/10.2307/2392620
Atkinson, R., Mckenzie, L., & Winlow, S. (Eds.). (2017). Building better societies: Promoting social justice in a world falling apart. Bristol University Press. https://doi.org/10.2307/j.ctt1t898t0
Bakken, L. (2018). Evaluation practice for collaborative growth. Oxford University Press. https://global.oup.com/academic/product/evaluation-practice-for-collaborative-growth-9780190885373
Bauer, T. & Erdogan, B. (2014). An introduction to organizational behaviour. Saylor Foundation. https://www.e-booksdirectory.com/details.php?ebook=4926
Baum, J. R., & Wally, S. (2003). Strategic decision speed and firm performance. Strategic Management Journal, 24(11). 1107-1129. https://doi.org/10.1002/smj.343
Bettis, R. A., & Hitt, M. A. (1994). The new competitive landscape. Strategic Management Journal, 16(S1). 7-19. https://doi.org/10.1002/smj.4250160915
Bolon, I., Mason, J., O'Keeffe, P., Haeberli, P., Adan, H. A., Karenzi, J. M., Osman, A. A., Thumbi, S. M., Chuchu, V., Nyamai, M., Babo Martins, S., Wipf, N. C., & Ruiz de Castañeda, R. (2020). One health education in Kakuma refugee camp (Kenya): From a MOOC to projects on real world challenges. One health (Amsterdam, Netherlands), 10. 100158. https://doi.org/10.1016/j.onehlt.2020.100158
Boyer, E. J., Kolpakov, A., & Schmitz, H. P. (2019). Do executives approach leadership differently when they are involved in collaborative partnerships? A perspective from international nongovernmental organizations (INGOs). Public Performance & Management Review, 42(1). 213-240. https://doi.org/10.1080/15309576.2018.1480392
Bryson, J. M., Crosby, B. C., & Stone, M. M. (2015). Designing and implementing cross-sector collaborations: Needed and challenging. Public Administration Review, 75(5). 647- 663. https://doi.org/10.1111/puar.12432
Christensen, C. M. (1997). The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business School Press.https://hollis.harvard.edu/primo-explore/search?tab=everything&search scope=everything&vid=HVD2〈=en_US&mode=basic&offset=0&query=lsr01,contains,007524537
Cohen, J. (1998). Statistical Power Analysis for the Behavioural Sciences. Lawrence Erlbaum Associates. https://www.utstat.toronto.edu/~brunner/oldclass/378f16/readings/CohenPower.pdf
Daft, R. L. (2016). Organization theory & design (12th ed.). South-Western. http://www.mim.ac.mw/books/Organization%20Theory%20and%20Design.pdf
Dess, G.G., & Beard, D.W. (1984). Dimensions of organizational task environments. Administrative Science Quarterly, 29, 52-73. https://doi.org/10.2307/2393080
Drummond, S. B. (2019). Dynamic discernment. Pilgrim Press. https://www.abebooks.com/9780829820454/Dynamic-Discernment-Reason-Emotion-Power-0829820450/plp
Gakinya, P. C., Rotich, G., & Ndambiri, A. N. (2018). Influence of technology as a strategic resource on performance of insurance companies in Kenya. A case of A.A.R. insurance Kenya limited. Strategic Journal of Business & Change Management, 5(2). 719 – 749. https://strategicjournals.com/index.php/journal/article/view/705
Ghosh, D., & Olsen, L. (2009). Environmental uncertainty and managers’ use of discretionary accruals. Accounting Organizations & Society, 34. 188-205. https://doi.org/10.1016/j.aos.2008.07.001
Halmaghi, E., Iancu, D., & Băcilă, M. (2017). The organization's internal environment and its importance in the organization's development. International conference Knowledge-Based Organization, 23(1). 378-381. https://doi.org/10.1515/kbo-2017-0062
Hubbard G. (2009). Measuring organizational performance: Beyond the triple bottom line. Business Strategy and Environment, 19. 177-191. https://doi.org/10.1002/bse.564
Kajwang, B. (2022). Factors influencing the low penetration of insurance services in Africa. Journal of Developing Country Studies, 5(1), 25–35. https://doi.org/10.47604/jdcs.1598
Kennerley, M. & Neely, A. (2013). Measuring performance in a changing business environment. International Journal of Operations and Production Management, 23(2). 213-229. https://www.academia.edu/18433372/Measuring_performance_in_a_changing_business_environment
Kimani, D. (2016). Strategic collaboration and performance of small and medium enterprises in Nairobi central business district. Thesis, University of Nairobi. http://erepository.uonbi.ac.ke/handle/11295/98979
Kinyua, J. K., Muchemi, A., & Kiiru, D. (2021). Performance of insurance companies in Kenya: does transformation capacity matter? International Journal of Managerial Studies and Research (I.J.M.S.R.), 9(10). 47-60. https://doi.org/10.20431/2349-0349.0910007
Kinyua, J. K., Muchemi, A., & Kiiru, D. (2021). Performance of insurance companies in Kenya: does transformation capacity matter? International Journal of Managerial Studies and Research (I.J.M.S.R.), 9(10). 47-60. https://doi.org/10.20431/2349-0349.0910007
Kiragu, R. W. (2016). Influence of innovation on performance of insurance companies in Kenya. Doctoral dissertation, Strathmore University. https://su-plus.strathmore.edu/bitstreams/fb85a6af-75b8-44ca-a414-7a6088311359/download
Kitaka, J. M., Kiragu, D., & Marwa, S. M. (2019). Management capability and sustainability of Kenya’s insurance companies. International Journal of Finance and Accounting, 4(2). 15 - 30. https://doi.org/10.47604/ijfa.817
Langat, G. K., Linge, T. K., & Sikalieh, D. (2019). Influence of inspirational motivation on employee job performance in the insurance industry in Kenya. International Journal of Research in Business and Social Science, 8(6). 01–07. https://doi.org/10.20525/ijrbs.v8i6.488
Lim, M., Griffiths, G., & Sambrook, S. (2010). Organizational structure for the twenty-first century. [In Annual meeting of The Institute for Operations Research and The Management Sciences, Austin]. https://www.academia.edu/9733601/Organizational_Structure_Paper
Maalouf, G. Y. (2019). Effects of collaborative leadership on organizational performance. International Journal of Multidisciplinary Research and Development, 6(1). 138-144. https://doi.org/10.22271/ijmrd.2019.v6.i1.25
Machuki, V. N. & Aosa, E. (2011). The influence of external environment on the performance of publicly quoted companies in Kenya. Business Administration and Management Journal, 1(7). 205-2018. https://www.semanticscholar.org/paper/The-influence-of-the-external-environment-on-the-of-Machuki-Aosa/a16a052968998cc3b65113720daf9ac21a48d4c1
Machuki, V. N. & Aosa, E. (2011). The influence of external environment on the performance of publicly quoted companies in Kenya. Business Administration and Management Journal, 1(7). 205-2018. https://www.semanticscholar.org/paper/The-influence-of-the-external-environment-on-the-of-Machuki-Aosa/a16a052968998cc3b65113720daf9ac21a48d4c1
Maina, M. N. (2016). Effect of innovation strategies on the performance of insurance firms in Kenya. Doctoral dissertation, University of Nairobi. http://erepository.uonbi.ac.ke/handle/11295/100339
Miller, D., & P. H. Friesen (1983). Successful and unsuccessful phases of the corporate life cycle. Organization Studies, 4(4). 339-356. https://psycnet.apa.org/record/1987-36284-001
Mohammad, H.I. (2019). Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance. Journal of Strategy and Management, 12(2). 275-297. https://doi.org/10.1108/JSMA-07-2018-0064
Moodley, T., & Govender, K. K. (2020). Collaborative leadership and customer-centricity: the case of an insurance service provider. Journal of Public Value and Administrative Insight, 3(3). https://readersinsight.net/JPVAI/article/download/1487/1154
Morara, K., and Sibindi, A. B. (2021). Determinants of financial performance of insurance companies: empirical evidence using Kenyan data. Journal of Risk and Financial Management 14. 566. https://doi.org/10.3390/jrfm14120566
Moshtari, M. (2016). Inter-organizational fit, relationship management capability, and collaborative performance within a humanitarian setting. Production and Operations Management, 25(9). 1542-1557. https://doi.org/10.1111/poms.12568
Müller, J., & Kunisch, S. (2018). Central perspectives and debates in strategic change research. International Journal of Management Reviews, 2. 457-482. https://doi.org/10.1111/ijmr.12141
Munyao, S. M. (2021). Effects of strategic leadership and external environment on the performance of African Inland church theological training institutions in Kenya. Doctoral Dissertation, Pan Africa Christian (P.A.C.) University, Kenya. http://dspace.pacuniversity.ac.ke:8080/123456789/3273
Murgor, P. K. (2014). External environment, firm capabilities, strategic responses and performance of large scale manufacturing firms in Kenya. Ph.D Thesis, University of Nairobi. http://erepository.uonbi.ac.ke/handle/11295/76894
Mutisya, P. M., K’Obonyo, P., Ogollah, K., & Njihia, J. M. (2020). Effect of environmental dynamism on organizational ambidexterity and performance of large manufacturing firms in Kenya. D.B.A. Africa Management Review, 10 (4). 138-152. http://journals.uonbi.ac.ke/damr
Ndungi, S., & Gacobo, J. (2021). Internal environment and organizational performance of world vision in Nairobi City County, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 3(3). 123-138. https://doi.org/10.35942/jbmed.v3i3.220
Ndurukia, Z., Njeru, D. A. W., & Waiganjo, D. E. (2017). The determinants of demand for micro insurance services in Kenya. American Journal of Finance, 2(6), 79 - 107. https://doi.org/10.47672/ajf.275
Niu, J.B. and Zhao, J. (2012). Information cost, environmental uncertainty and independent directors’ Premium. Nankai Business Review, 2. 70-80. https://www.scirp.org/(S(czeh2tfqw2orz553k1w0r45))/reference/referencespapers.aspx?referenceid=2434883
Njenga N., M. (2018). The influence of collaborative leadership on team’s performance: A Case study of Kingdom SACCO. I.O.S.R. Journal of Business and Management (IOSR-JBM), 20(12). 54-59. https://www.iosrjournals.org/iosr-jbm/pages/20(12)Version-6.html
Njuguna, E. W., Kabata, D., & Wambugu H. (2022). Strategic Orientation and the Performance of Insurance Companies In Kenya. I.O.S.R. Journal of Business and Management (IOSR-JBM), 24(01). 1-12. https://www.iosrjournals.org/iosr-jbm/papers/Vol24-issue1/Ser-5/A2401050112.pdf
Njuguna, E. W., Kabata, D., & Wambugu H. (2022). Strategic Orientation and the Performance of Insurance Companies In Kenya. I.O.S.R. Journal of Business and Management (IOSR-JBM), 24(01). 1-12. https://www.iosrjournals.org/iosr-jbm/papers/Vol24-issue1/Ser-5/A2401050112.pdf
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw-Hill. https://books.google.co.ke/books/about/Psychometric_Theory.html?id=r0fuAAAAMAAJ&redir_esc=y
Nyaberi, J. P. L. (2021). External environment and firm performance: The role of firm’s dynamic capabilities: A critical review of literature. The Strategic Journal of Business & Change Management, 8 (3). 1109 – 1115. https://strategicjournals.com/index.php/journal/article/view/2128
Oloo, M. (2021). Strategic leadership, organizational culture, and performance of the land administration function in Kenya. Doctoral Dissertation, Pan Africa Christian (P.A.C.) University, Kenya. http://dspace.pacuniversity.ac.ke:8080/xmlui/bitstream/handle/123456789/3267/Martin%20Oloo.pdf?sequence=1
Ondari, E. (2015). The effect of top management team diversity and competitive environment on the relationship between diversification strategy and performance of companies listed in the Nairobi Securities Exchange. Doctoral dissertation submitted in Nairobi University.https://chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/http://erepository.uonbi.ac.ke/bitstream/handle/11295/94692/Ondari%20%20The%20effect%20of%20top%20management%20team%20diversity%20and%20competitive%20environment.pdf?sequence=1
Ongeti, W.J. (2014). Organizational Resources, Corporate Governance and Performance of Kenyan State Owned Corporations. (Unpublished) Ph.D. Thesis, University of Nairobi. http://erepository.uonbi.ac.ke/bitstream/handle/11295/76984/Ongeti_Organizational%20resources%2C%20corporate%20governance%20structures%20and%20performance%20of%20Kenyan%20state%20corporations.pdf?sequence=4
Robbins, S. P., & Judge, T. A. (2015). Organizational behaviour. (15th ed.). Pearson Publishing. http://www.mim.ac.mw/books/Organizational%20Behavior%20(15e).pdf
Sambu, J. K. (2022). Value-based leadership and its implications for citizenship education in preschool institutions in Kajiado North. Doctoral Dissertation, Pan Africa Christian (P.A.C.) University, Kenya. http://dspace.pacuniversity.ac.ke:8080/xmlui/bitstream/handle/123456789/3078/Joseph%20Sambu.pdf?sequence=1
Samwel., J.0. (2018). Effect of employee relations on employee performance and organizational performance; study of small organizations in Tanzania. International Journal of Economics, Business and Management Research, 2(4). 2456-7760. https://chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.ijebmr.com/uploads/pdf/archivepdf/2020/IJEBMR_02_260.pdf
Seo, E.H., Kim, C.Y., and Kim, K. (2020). A study on the mechanisms linking environmental dynamism to innovation performance. Sustainability, 12(23). 9999. http://dx.doi.org/10.3390/su12239999
Simper, N., Gauthier, L., & Scott, J. (2018). Student learning in the workplace. The Journal of Workplace Learning, 30(8). 658-671. https://doi.org/10.1108/JWL-04-2018-0060
Sink, D.S., & Tuttle, T.C. (1989). Planning and measurement in your organization of the future. Industrial Engineering and Management Press. https://pdfs.semanticscholar.org/adbc/c3fd6d611dcc86956993792fc8c12f49d897.pdf
Tellis, G. J. (2006). Disruptive technology or visionary leadership? Journal of Product Innovation Management, 23(1). 34-38. https://doi.org/10.1111/j.1540-5885.2005.00179.x
Tindika, O.K.N., Wanjau, K.L., Kariuki, G.M., & Muchiri, J., (2020). Moderating role of environmental dynamism on the relationship between opportunity evaluation and growth of N.G.O.s in Kenya. Expert Journal of Business and Management, 8(1). 98-109. https://business.expertjournals.com/23446781-806/
Tondeur, J., Krug, D., Bill, M., Smulders, M., & Zhu, C. (2015). Integrating I.C.T. in Kenyan secondary schools: an exploratory case study of a professional development programme. Technology, Pedagogy and Education, 24(5). 565-584. https://www.learntechlib.org/p/175249/
Yang, P. (2019). Environmental dynamics, financial flexibility and enterprise strategic change. American Journal of Industrial and Business Management, 9. 124-138. https://doi.org/10.4236/ajibm.2019.91010.
Zhou, K.Z. & Wu, Z. (2010). Technological capability, strategic flexibility, and product innovation. Strategic Management Journal, 31. 547-561. https://doi.org/10.1002/smj.830
DOI: http://dx.doi.org/10.61426/sjbcm.v10i4.2828
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.