The CEO is one important organizational resource that sets the path for the firm’s strategic
direction. The general objective of the study was to establish the effects of chief executive
officers leadership style and performance of state corporations in Kenya. The study was
carried out in Nairobi and Mombasa where the CEO’s and management staff of the 11 state
corporations were based. The research study used descriptive research design and the target
population constituted477 management staff and CEOs’ of the nine state corporations.
However, only 153 formed the sample size which represented 30% of the total population.
The CEOs’, heads of departments and middle level management formed the key respondents
of the research study. The study employed a structured questionnaire to collect data. A pilot
test was carried out to test the reliability of the instrument. A total of 15 questionnaires were
used for this purpose. Data collected was analyzed using Social Science Statistical Package
(SSPS).Multiple regression analysis was used to establish the relationship between the
independent and dependent variables. Reliability was also tested using Cronbachs alpha and
all the variables meet the threshold for subsequent analysis. Factor analysis was also
employed to test for validity where the questions that didn’t meet the threshold were dropped
not to be considered for subsequent analysis. Correlation analysis indicated that the
independent variables had a positive and significant relationship with organizational
performance of state corporations. Regression analysis was used also to test the nature of the
relationship. Leadership style leading explained 70% of the variation in performance of state
corporations. The study therefore concluded that leadership style had a prominent effect on
the performance of state corporations in Kenya.
