Leadership Style and Project Performance Among Not-For-Profit Organizations in Kenya: A Case of The Kenya Scouts Association

Abstract

Not-for-profit organizations (NFPS) in Kenya address social, economic, and environmental challenges, often filling gaps in government services in areas like education, health, and poverty alleviation. Relying on donor funding, grants, and community support, they work to improve the well-being of their beneficiaries. Effective leadership is crucial for optimizing project performance and managing resources in NFPS, as these organizations face challenges such as limited resources, regulatory constraints, and stakeholder expectations, requiring flexible leadership for project success and sustainability. The problem addressed in this study was the potential decline in project performance attributed to ineffective leadership styles, a prevalent issue in Kenya’s NFP sector. The purpose of the research was to examine the effects of different leadership styles on project performance, with a specific focus on the Kenya Scouts Association (KSA). The study aimed to identify the leadership styles used at KSA, assess project performance, and evaluate the influence of leadership styles on project outcomes. The justification for this study was grounded in the crucial role that effective leadership plays within NFPs, where resource limitations and high expectations often pose significant challenges to project execution. Grounded in Situational Leadership Theory, the Theory of Performance, and the anchor theory, the Performance-Maintenance Theory, the research used descriptive and inferential statistics to analyze the data and derive meaningful conclusions. Explanatory research design was employed. The target population consisted of all 65 employees and volunteers working on projects at the KSA headquarters in Nairobi, and a census was conducted, ensuring full participation. Cronbach’s alpha coefficient was used to measure reliability, while ANOVA Test and Pearson correlation co-efficient assessed the relationships and impact of leadership styles on project performance. Data was collected using semi-structured questionnaires and analyzed descriptively using SPSS Version 26.). These results of the study demonstrate that leadership styles significantly impacted key project performance areas like scope, scheduling, and costs. The analysis also showed a high mean score (4.35) for transformational leadership, with minimal variability (0.85), indicating strong and consistent agreement on its positive impact on project outcomes. Additionally, the regression analysis demonstrated that leadership styles accounted for 10.2% of the variance in project performance (R² = 0.102), with the F-statistic being statistically significant (p < 0.05). Pearson correlation analysis found that transformational leadership had strong positive correlations with project scope (0.451**), schedule (0.422**), and cost (0.441**). Similarly, transactional leadership also showed significant positive correlations with scope (0.446**), schedule (0.481**), and cost (0.424**). Servant leadership demonstrated moderate correlations with schedule (0.281*) and cost (0.304**), while bureaucratic leadership showed weaker correlations with scope (0.334), schedule (0.230**), and cost (0.251*). Autocratic and democratic leadership styles had weaker yet significant correlations with project performance. In conclusion, the study highlighted that project performance at KSA was closely linked to the leadership styles used, with transformational and democratic leadership being especially effective. It recommended that KSA management reconsider the use of bureaucratic leadership and adopt more flexible approaches to improve efficiency. Additionally, measures should be put in place to address delays and ensure projects are delivered on time and within budget.