The Influence of Hard and Soft Power on the Organizational Effectiveness of State Corporations in Kenya

ABSTRACT The study examines how hard and soft power influence the organizational effectiveness of State corporations (SCs) in Kenya, a public‐sector context characterized by complex political dynamics and competing interests. Using a mixed‐methods approach, the study surveyed 366 employees across 33 SCs and interviewed eight Chief Executive Officers (CEOs). The theoretical framework drew on French and Bertram's bases of social power and the Competing Values Framework. Quantitative analysis using SmartPLS showed that social power significantly and positively influenced organizational effectiveness. Hard power (legitimate, coercive, and reward bases) had a significantly larger effect ( β = 0.540), whereas soft power (referent and expert bases) had a smaller, but significant effect ( β = 0.149). Qualitative findings indicate that SC leaders frequently use hard power tactics, including coercion and rewards, to ensure compliance and meet political expectations, reflecting the influence of the political landscape. Soft power, based on influence and expertise, is important for navigating organizational complexities and securing stakeholder support, although entrenched political interests may constrain its effectiveness.