Revisiting Upper Echelons Theory for Strategic Leadership: Does It Matter for Performance of Poultry Firms in Kenya?

Abstract

Whether strategic leadership retains real value for firm performance has long been contested, and the debate has often outrun the evidence in sectors far from the manufacturing and service settings where the construct was first tested. This study revisits Upper Echelons Theory and asks whether strategic leadership matters for the performance of poultry firms in an emerging economy. It examined the nineteen registered poultry firms in Nairobi City County, Kenya, a value chain marked by declining output, rising import competition and volatile input costs. Anchored on Upper Echelons Theory, and complemented by Strategic Leadership Theory and the Resource-Based View, the study measured strategic leadership as an integrated four-dimension construct comprising setting strategic direction, building core competencies, building organizational culture and networking, and examined the association between each dimension and firm performance. All nineteen firms were taken as a census, and a proportionate stratified random sample of 209 managers was drawn from their top echelon and business unit ranks; 200 returned usable questionnaires, a response rate of 95.69%, with Cronbach's alpha clearing the 0.7 threshold on every scale (0.761 to 0.902). The firms reported a high level of strategic leadership practice (M=3.99; SD=1.088) and a slightly lower level of performance (M=3.83; SD=0.779). Multiple linear regression showed that the four dimensions jointly explained 72.5% of the variance in managers' reported firm performance (Adjusted R²=.725; F significant at p < .001). Each dimension contributed a positive and significant effect: networking (B=.282), setting strategic direction (B=.246), building core competencies (B=.243) and building organizational culture (B=.204), all at p≤0.05. The results indicate that, far from being overwhelmed by a turbulent agribusiness environment, strategic leadership practices are strongly and consistently associated with performance in it. The study extends an upper-echelons perspective to emerging-economy agribusiness, demonstrates the value of measuring strategic leadership as a consolidated four-dimension whole, and advises boards and managers of poultry firms to treat clear strategic direction, competence renewal, adaptive culture and value chain networks as investments that shape revenue rather than as overhead.

Keywords: {'name': 'Strategic leadership, upper echelons, setting strategic direction, core competencies, organizational culture, networking, firm performance, poultry value chain, Kenya.'}

Authors & affiliations

Bashir Hussein Mohamed
Kenyatta University

Stephen M. A. Muathe
Kenyatta University

James M. Kilika
Kenyatta University

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