INFLUENCE OF SELECTED STRATEGIC LEADERSHIP PRACTICES ON THE PERFORMANCE OF FINTECH FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

This study investigated the influence of strategic leadership practices on the performance of FINTECH firms operating in the dynamic environment of Nairobi City County, Kenya. Facing challenges such as intense competition from established key players, regulatory hurdles including new Central Bank of Kenya regulations, and technological disruptions, these firms require effective leadership strategies to thrive. The general objective of this study was to explore the influence of selected strategic leadership practices on the organizational performance of FINTECH firms operating in Nairobi City County, Kenya and particularly examining the influence of strategic direction, balanced controls, organizational culture, and firm's resources on performance. Employing a predictive research design, the study targeted 154senior and middle-level managers from twenty two FINTECH firms in Nairobi City County. With a sample of 111 determined using the Taro Yamane formula a response rate of 82.88% was achieved. Data was collected using structured questionnaires, which were piloted in Nakuru County to ensure reliability and validity. The overall Cronbach's alpha for the study was 0.797, indicating high reliability. Data was analysed using descriptive statistics, correlation analysis, and multiple linear regression,further diagnostic tests for normality and multicollinearity was tested and revealed that all four strategic leadership practices significantly and positively influenced organizational performance. The regression model explained 68.5% of the variance in performance (R² = 0.685), with strategic direction showing the strongest influence (β=0.890, p=0.01<0.05), followed by balanced controls (β=0.753, p<.05), organizational culture (β=0.496, p<.05), and firm's resources (β=0.330, p<.05). The study concluded that these practices are crucial for FINTECH firms' success in Nairobi's dynamic environment and provided recommendations for their enhancement, including prioritizing clear strategic direction, implementing robust control mechanisms, fostering supportive organizational cultures, and optimizing resource management. The study recommends that future research should explore the impact of external factors such as regulatory changes and market trends, conducting longitudinal studies on the evolving relationship between strategic leadership and performance, and examining how firms adapt their leadership practices in response to rapid technological advancements and changing consumer behaviours in the digital finance landscape