Browsing by Author "Louw, Lynette"
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Item The Kenyan banking industry challenges and its sustainability(Palgrave MacMillan, 2017) Muriithi, Samuel Muiruri; Louw, LynetteThe banking industry is a major driver of economic development for world economies. By offering different types of services, such as facilitating money transfers between countries and ensuring that savers and borrowers are brought together in well-organised structures, the industry determines countries’ economic development and long-term sustainability. Although critical to world economic stability, the last six decades have seen the industry experience severe financial challenges which have negatively affected economic performance of most countries. The main causes of financial crises have been non-performing loans, political interference, uncertain global financial trends and poor leadership. The Kenyan banking industry is considered the most mature, fastest-growing and largest in East Africa, thereby making it the regional financial leader. The industry has, however, been a victim of both global and domestic financial challenges. Between 1980 and 2000, the country’s financial industry was characterised by major financial upheavals that led to the collapse of many banks, while others were in and out of receivership. The crises were attributed to non-performing loans, weak internal control mechanisms, poor governance and poor leadership. Since the year 2000, the government has instituted tough measures to revive the industry, which have resulted in stability. As such, the industry has experienced positive and encouraging growth, contributing towards making the sector the financial hub of the East Africa region. Despite recent gains, however, the industry still faces challenges of corruption, inability to reach the majority of the rural population, fragmentation and ineffective leadership. This chapter explores the importance of enhancing and strengthening the banking internal control mechanisms and developing sustainability strategies, focusing on business practices and product development geared towards healthy economic, social and environmental activities.Item The Relationship Between Strategic Thinking and Leadership Effectiveness among Kenyan Indigenous Banks.(South African Journal of Economic and Management Sciences, 2015) Muriithi, Samuel Muiruri; Louw, Lynette; RADLOFF, Sarah E: Leadership effectiveness is critical to organisational performance and survival. To be effective, organisational leaders must possess the right competencies. One vital leadership competency is strategic thinking, which is described as the ability to synthesise and utilise intuition and creativity in order for an organisation to achieve an integrated perspective. Strategic thinking remains a critical area for research, owing to lack of supporting empirical literature, and to theories that give little or no guidance to leaders.Item The relationship between strategic thinking and leadership effectiveness in Kenyan indigenous banks(South African Journal of Economic and Management Sciences, 2018) Muriithi, Samuel Muiruri; Louw, Lynette; Radloff, Sarah E.Background: Leadership effectiveness is critical to organisational performance and survival. To be effective, organisational leaders must possess the right competencies. One vital leadership competency is strategic thinking, which is described as the ability to synthesise and utilise intuition and creativity in order for an organisation to achieve an integrated perspective. Strategic thinking remains a critical area for research, owing to lack of supporting empirical literature, and to theories that give little or no guidance to leaders. Aim: The purpose of this study is to empirically test the relationship between strategic thinking competency and leadership effectiveness in Kenyan indigenous banks. Setting: The setting of the study is the indigenous banks in Kenya. Methods: The study was based on a positivist research paradigm which is quantitative in nature and utilised a survey method to collect data. Both probability and non-probability methods were used to determine the target population. The research instrument was a selfadministered, closed-ended questionnaire. From a target population of 494 individuals, a total of 257 responses were received and analysed. The analysis was performed using structural equation modelling with confirmatory factor analysis, Cronbach’s alpha and goodness-of-fit indices being used for analysis and testing relationships. Results: The overall findings are that a positive relationship exists between strategic thinking and leadership effectiveness in indigenous banks in Kenya. The study further establishes positive relationships between the strategic thinking competency and its sub-constructs of general strategic thinking, intent-focused and hypothesis-driven, but a negative relationship with intelligent opportunism. A similar positive relationship exists between leadership effectiveness and its sub-constructs of influence, follower commitment and versatility. Conclusion: This research has established that strategic thinking is an important determinant of leadership effectiveness for indigenous banks in Kenya, and therefore supports prevailing literature and theory indicating a positive relationship. The implication of the study is that bank management should strive to maintain strategic thinking competency for effective leadership, successful bank performance and stability.Item The relationship between transformational leadership and leadership effectiveness in Kenyan indigenous banks(SA Journal of Human Resource Management, 2018) Louw, Lynette; Muriithi, Samuel Muiruri; Radloff, SarahOrientation: Effective leadership is critical to the survival and growth of organisations. For such leadership to be realised, organisational leaders need to be competent in transformational leadership, which is described as a situation in which the leader and followers empower and shape each other’s behaviour to attain a desired goal. Research purpose: The purpose of this study is to empirically test the relationship between transformational leadership competency and leadership effectiveness in Kenyan indigenous banks. Motivation for this study: In spite of the fact that indigenous banks have been performing better recently, their overall poor performance is cause for concern. This study was motivated by a desire to establish the extent to which the recent improvement is attributable to transformational leadership competency and effectiveness. It is also anticipated that this investigation can highlight aspects of leadership which require more attention in order to sustain improved performance. Research design, approach and method: The study utilised a survey method to collect both quantitative and qualitative data while probability and non-probability techniques were used to sample target population. With 494 respondents targeted in the study, 257 responses were received and analysed. Data analysis was performed using structural equation modelling with Cronbach’s alpha, confirmatory factor analysis and goodness-of-fit indices for analysis and for testing relationships. Main findings: The overall findings confirm that a strong relationship exists between transformational leadership competencies and leadership effectiveness among the leaders of the indigenous banks in Kenya. Practical/managerial implication: Based on the findings of this study, Kenyan indigenous banks are able to identify specific and essential transformational leadership competencies and leadership effectiveness attributes. Contribution: The study has identified that transformational leadership abilities of inspirational motivation, intellectual stimulation, individualised consideration and idealised influence, together with the leadership effectiveness indicators of cross-cultural competency, influence, follow commitment, versatility and group organisation are essential for the effectiveness of Kenyan banks.