STRATEGIC LEADERSHIP DIMENSIONS AND ORGANIZATIONAL PERFORMANCE AMONG SMEs IN KIAMBU COUNTY, KENYA

Purpose of the Study: This study examined the relationship between four dimensions of strategic leadership strategic direction, strategic human capital development, organizational culture, and strategic controls and organizational performance among small and medium-sized enterprises (SMEs) in Kiambu County, Kenya. Problem Statement: SMEs contribute significantly to employment, household income, and local economic activity. However, many operate under resource constraints, market uncertainty, and competitive pressures. Although strategic leadership is widely regarded as a source of organizational effectiveness, the relative contributions of specific leadership practices to SME performance in the local county context require empirical investigation Methodology: The study adopted a positivist research philosophy and an explanatory cross-sectional survey design. The target population comprised approximately 400 licensed SMEs across six sub-counties in Kiambu County. A target sample of 200 enterprises was determined and proportionately allocated across the strata. Following data screening, 180 valid questionnaires were included in the analysis. Descriptive statistics, Pearson’s correlation analysis, and multiple regression analysis were used to analyse the data. Results of the Study: The four strategic leadership dimensions jointly explained 19.9% of the variance in reported organizational performance. The regression model was statistically significant, F(4, 175) = 10.85, p < .001. Strategic direction was the strongest adjusted predictor of organizational performance (β = .354, p < .001), followed by strategic human capital development (β = .266, p < .001) and organizational culture (β = .151, p = .028). Strategic controls were not statistically significant in the adjusted model (β = .120, p = .083). Conclusion and Policy Recommendation: The findings suggest that clarity of strategic direction and the deliberate development of employee capabilities are important performance-related leadership practices among the SMEs surveyed. Owner-managers should translate their strategies into clear objectives, communicate organizational priorities effectively, regularly review market conditions, and invest in practical employee development initiatives. However, given the cross-sectional design and the reliance largely on self-reported measures, the findings indicate associations rather than establishing causal relationships. Keywords: Strategic Leadership, Organizational Performance, SMEs, Strategic Direction, Human Capital Development, Kenya