Abstract:
The general objective of this study was to establish the influence of adaptive leadership on organizational performance in the insurance industry in Kenya. The specific objectives of the study were: to determine the influence of gaining perspective on organizational performance of insurance companies in Kenya; to establish the influence of self-leadership on organizational performance of insurance companies in Kenya; to assess the influence of a safe environment on organizational performance of insurance companies in Kenya; to determine the influence of employee engagement on organizational performance of insurance companies in Kenya; and to establish the moderating effect of person-job fit on the relationship between adaptive leadership and organizational performance of insurance companies in Kenya.
The study was anchored on the adaptive leadership theory. The study adopted the positivism philosophy and the descriptive research design. The study population consisted of 311 senior and middle-level managers from 56 licensed insurance companies in Kenya. A Census survey was adopted for this study. Primary data was collected using structured questionnaires and data was analyzed using both descriptive and inferential statistics. Descriptive statistics included the mean and standard deviation while inferential statistics included the Chi-square test, one-way Analysis of Variance (ANOVA), correlation analysis, and multiple regression analysis with results presented in tables and figures. The Statistical Package for Social Sciences (SPSS) was used as the statistical tool for analysis.
Gaining perspective showed a positive and significant correlation with organizational performance, r (239) = .526, p < 0.001. The study found that gaining perspective significantly predicted organizational performance, β = 0.656, t (239) = 9.518, p < .001. Therefore, the null hypothesis was rejected implying that gaining perspective significantly influences organizational performance. Self-leadership showed a positive and significant correlation with organizational performance, r (239) = 0.518, p < .001 and significant predicted organizational performance, β = 0.657, t (239) = 9.322, p < .001. Consequently, the null hypothesis was rejected and it was concluded that self-leadership has a significant influence on organizational performance.
A positive and significant correlation was found between a safe environment and organizational performance, r (239) = .536, p < .001. The study found that a safe environment significantly predicted organizational performance, β = 0.698, t (239) = 9.784, p < .001. Hence, the null hypothesis was rejected and it was concluded that a safe environment significantly influences organizational performance. Engagement had a positive and significant correlation with organizational performance, r (239) = .487, p < .001. The study found that engagement significantly predicted organizational performance, β = 0.586, t (239) = 8.589, p < .001. Consequently, the null hypothesis was rejected and the study concluded that engagement has a significant influence on organizational performance. The moderating variable of person-job fit had a significant correlation with organizational performance r (239) = .539, p < .001. The multiple linear regression analysis results revealed that person-job fit significantly moderated the relationship between adaptive leadership and organizational performance of insurance companies in Kenya, β =.063 t (239) = 3.484, p < .001. Based on these findings, the null hypothesis was rejected. Therefore, the study concluded that person-job fit significantly moderated the relationship between adaptive leadership and organizational performance.
The study concluded that leaders should adopt adaptive leadership that includes gaining perspective, self-leadership, creating a safe working environment, and empowering employees in order to enhance organizational performance. Further, the study concluded that person-job fit has a positive influence on organizational performance. Also, person-job fit plays a significant role in moderating the relationship between adaptive leadership and organizational performance. The study recommends that organizations should adopt adaptive leadership to enhance organizational performance. This study recommends future studies that shall provide a generalization of findings across other contexts, with employees or other levels of management. Further, a different study design as compared to the cross-sectional design used in this study would provide stronger evidence of causal relationships of adaptive leadership with other study variables. The study recommends further studies that shall contribute to scholarly research on adaptive leadership which is one of the contemporary leadership styles with limited empirical studies in its support.