Strategic Leadership and Crisis Management Effectiveness at East African Portland Cement, Kenya

Abstract

In today’s increasingly volatile and complex business environment, the role of strategic leadership has become critical in navigating organizations through crises and ensuring sustained competitiveness. The cement industry in Kenya, especially government-owned entities such as parastatals and especially those in manufacturing such as East African Portland Cement (EAPC), face persistent operational and financial crises, often attributed to weak strategic leadership, regulatory challenges, and inefficiencies in management practices. As such, the purpose of this study was to evaluate the effect of strategic leadership on crisis management effectiveness at East African Portland Cement. The specific objectives of the study were to; examine the effect of strategic direction, assess the effect of stakeholder engagement, investigate the effect of development of employee competencies on crisis management effectiveness at East African Portland Cement; and evaluate the moderating effect of industry regulations on the relationship between strategic leadership and crisis management effectiveness at East African Portland Cement. The study was anchored on Transformational Leadership Theory, Strategic Leadership Theory, Organizational Resilience Theory and Institutional Theory, providing a comprehensive theoretical foundation for understanding the dynamics of strategic leadership and crisis management effectiveness. An explanatory research design was employed on a census of 86 participants. The research used primary data, collected using a semi-structured questionnaires, which was appropriate for quantitative and thematic analysis. Data collected was analyzed using Statistical Package for Social Sciences (SPSS) version 29.0. Results revealed that strategic direction significantly enhanced crisis management effectiveness (R²=0.353, p<0.05), demonstrating the importance of clear communication, consistent vision, and adaptive strategy review. Stakeholder engagement was also significant (R²=0.293, p<0.05), underscoring the role of transparency, inclusivity, and feedback in strengthening resilience. Similarly, employee competencies positively influenced crisis management (R²=0.341, p<0.05), with empowerment, training, and career development pathways identified as critical factors. Industry regulations had a significant direct effect (β=0.344, p<0.05) on crisis preparedness, particularly through compliance with safety, environmental, and quality standards. However, moderation analysis showed that the interaction between strategic leadership and regulations was statistically insignificant (β=0.116, p=0.179, p>0.05). The study concludes that effective strategic leadership enhances organizational resilience, with regulatory frameworks strengthening outcomes directly. These insights contribute to the realization of the UN Sustainable Development Goals (SDG 9: Industry, Innovation, and Infrastructure; SDG 8: Decent Work and Economic Growth; and SDG 12: Responsible Consumption and Production), align with Kenya’s Vision 2030 agenda of revitalizing manufacturing, and support the Africa Agenda 2063 goal of building resilient, competitive, and sustainable industries. Policy implications include institutionalizing strategic leadership practices, mainstreaming employee development, and embedding stakeholder engagement into governance frameworks to improve crisis readiness in Kenya’s manufacturing sector.