MIDLANDS STATE UNIVERSITY

GRADUATE SCHOOL OF BUSINESS

LEADERSHIP
DISSERTATION

NAME CHARITY N MANEMA

REG NUMBER R134558J
PROGRAMME MBA
MODULE MBA 803 DISSERTATION
FACILLITATOR DR G MAIBVISIRA
MODE OF ENTRY HARARE WEEKEND CLASS
YEAR 2022

RESEARCH TOPIC
Impact of strategic leadership on organizational performance of Small and Medium
Enterprises in Zimbabwe’s fast food retail Sector
CHAPTER 1

1.1Introduction
This study focused on the impact of strategic leadership on organizational performance of small and medium
enterprises organizations in Zimbabwe’s fast food retail sector. This study was prompted by the need to fill a
research gap concerning the impact of strategic leadership on organizational performance in the fast-food retail
sector of SMEs in developing countries such as Zimbabwe, as most previous studies on strategic leadership
focused on large multinational corporations in developed countries. Thus, chapter one provides the background
to the study, problem statement, conceptual framework, research objectives, research hypothesis, significance of
the study, delimitations of the study, research assumptions, limitations of the study, and definitions of key
terms. It concludes with a chapter summary.

1.2Background of the study

According to Malik and Khatz (2016), the business world is changing faster than ever before, with factors such
as competition, globalization, and technology reshaping the environment in which modern businesses thrive. To
address this type of environment, businesses require leaders with the necessary skills. According to Wendell
(2009) strategic leadership is the managerial ability to expect, predict, keep flexibility, and endow others to
generate strategic change where appropriate. Mayol and Chang Fu (2016) alluded that strategic leader
understand the current state of available markets, how to structure their products to serve the market
competitively, the health of their organization and the presence of capital, how to determine the needs of the
different sections of an organization, how to manage change in various states, how to use accountability and
power, and ways to develop an optimum leadership team with adequate skills and competencies (Harris, 2008).
Strategic leadership is one of key determinants of performance of an organization through strategic decision-
making, determining organizational structure and managing the organizational process.

Strategic leaders shape the future of any organization as their actions determine organizational performance,
Krupp and Schoemaker(2013) made the assertion that strategic leadership through anticipation, learning,
challenging, deciding, interpreting and aligning determines how organizations perform. Alif (2016) alluded that
strategic leader anticipate, they are constantly vigilant, honing their ability to anticipate by scanning the
environment for signals of change. They develop and maintain an external mindset. Once a company becomes
the master of its own universe, seeing new developments in adjacent markets becomes harder. The paradox is
2
the more humility we have about our ability to make predictions, the more successful we can be in winning the
long game. Markin (2017) also indicated that strategic, leaders question the status quo. Practice promulgating
outside perspectives to see complex issues in context, and practice deep self-reflection to confront outmoded
beliefs, faulty assumptions, and stubbornness in yourself and others. For example, are they comfortable with
opposing viewpoints and differences of opinion, or how frequently do you question your own and other people's
assumptions? According to Maharaj (2015), strategic leadership is most prevalent in large organizations, and its
effects are most visible in these organizations. The researcher identified a gap in the SME fast food retail sector
and sought to determine how strategic leadership affects the performance.

According to Cronnel (2014), strategic leaders interpret signals within the environment in which they operate.
Strategic leaders amplify signals and connect multiple data points in novel and insightful ways to make sense of
complex, ambiguous situations. Leaders get blindsided not so much because they are not receiving signals but
because they are not exploring alternative interpretations, or they get locked into one view of the issue. Putkish
and Hallel (2016) indicated that strategic leaders engage stakeholders to understand change readiness, manage
differences and create buy-in. They’re adept at finding common ground. This requires active outreach and good
communication. There’s an interconnectedness now in problems—and this changes the issues. You need to
have more people involved with the decision making and give up some control. Hundermark (2017) further
went on to say that strategic leaders continuously reflect on successes and failures to improve performance and
decision-making. The learning organization still doesn’t have much of a foothold in the business world, despite
skyrocketing uncertainty. Leaders must make their moves when the future is still ambiguous. If an organization
is continually learning, then everyone is primed for change and ready to move as needed.

Malwek (2007) states that the economic environment is changing rapidly, and this change is characterized by
such phenomena as the globalization and change in consumer demands. Past research by Fawlen (2010)
indicates that to compete successfully in this environment, organizations continually need to improve their
performance. “Strategic leadership is an ongoing process that evaluates and controls the organization and the
sector in which the company is involved, assesses its competitors and set goals and strategies to meet all
existing needs of the people, and then reassess each strategy annually or quarterly to determine how it has been
implemented and whether it has succeeded or needs replacement by a new strategy to meet charged
circumstances, new technology, new competitors, a new economic environment, or a new social, financial or
political environment” (Lamb,2000) According to a previous study by Raduan et al. (2009), strategic leadership
incurs significant costs, to scan what other competitors are doing in the fast food retail sector which is why it is
primarily concentrated in large organizations in developed countries that can bear the costs. This created a gap
3
for the researcher to see how strategic leadership affects small organizations in the fast-food retail sector in
developing countries based on the environment in which they thrive.

A good strategic plan and preparing the best for future unknown events is key to ensure survival in such an
environment. Stricland (2001) defined strategic leadership as a process whereby managers establish
organizations long term direction, set specific performance objectives, develop strategies to achieve these
objectives in the light of all relevant internal and external circumstances and undertake to executes the chosen
action. Strategic leadership focuses mainly on formulating the strategy, implementing, and evaluating if it has
met the desired results. Bekker (2017) went on to say that strategic leadership is mainly dominant in the
developed countries large corporations such as KFC ,Nando’s, Starbucks and McDonalds which are more
established . This prompted the researcher to research on the impact of strategic leadership on SMEs in fast
food retail sector of developing countries which are less established.

The primary responsibility of any leader is to develop the abilities of their followers. As a result, leaders' role is
to transform the workplace into a place where employees can reach their full potential (Sharma, 2007).
According to Shacklis and Mahamad (2006), an organization earns significant 4 results in terms of allegiance,
output, inventiveness, and dedication to the organization's compelling goal if its leaders commit to freeing
rather than suffocating the abilities of the people they lead. Richardson and Powell (2014) alluded that strategic
leadership concept provides the required values and abilities for the owners and managers of SMEs in the fast-
food retail sector to enable them to succeed in running their businesses in developed countries. The ability to
anticipate and position an organization to the dynamic business environment plays an essential part in the
continued survival and success of a business. The focus of these prior research was on developed countries in
Europe and Asia so the context might not be the same in Zimbabwe since it’s a developing country creating a
research gap that the researcher sought to find out.

Strategic leadership involves creating long term purpose and vision of the firm. The purpose and vision of an
organization bring into line the activities of all people in the firm (Harris, 2008). A good vision is lively and
everyone in the firm comprehend it and act by it. It is also full of ambition and energy; hence employees keep
talking about their firm’s purpose and vision. According to Mewlat (2008) firms fall into a trap when leadership
are fixated on their vision and ignore emerging market prospects. Strategic leaders have a task of administering

4
resources of the organization. The resources can be classified into social capital, financial capital, and human
capital 5 (Barney and Arikan, 2001). Dargadan and Grant (2007) alluded that it is essential to foster human
capital if strategic leadership is required to be achieved.

According to Richard et al (2009) organizational performance comprises of the actual output or results of an
organization as measured against its intended outputs that is goals and objectives. Performance is the record of
results achieved on a given action during a given period (Wang et al, 2011). Therefore, performance is
identified through output, streamlined internal processes, profits, attitudes of workers, customer satisfaction
among others (William 2002). A firm’s performance is the “transformation of inputs into outputs for achieving
certain outcomes. Regarding its content, performance informs about the relation between minimal and effective
cost, between effective cost and realized output and between output and achieved outcome.

According to Mhlanga (2020) Companies are reeling under a deepening economic crisis coupled with the
impact of the Covid-19 pandemic, financial statements reveal. The severe impact of the pandemic, which had
resulted in hundreds of thousands of fatalities globally, has worsened the country’s battered economy
characterized by currency volatility, poor business climate, rampant corruption, policy inconsistency and
runaway inflation that have decimated incomes and pensions. The poor performance caused by the ongoing
global crisis as Covid has a negative impact on the overall performance of the SME’s. For them to stay abreast
and floating in the market would require proper leadership and right strategies to improve on performance.
According to a business report by Masekere (2020) 40.8% of the SME’s in Zimbabwe’s fast food retail sector
have not been performing in terms of growth, meeting customer demands and continuity The good performance
of an organization is the basis of continuing to operate as a going concern .Ashmid (2010) indicated that when
an organization is performing well in terms of output it is able to lure investors and be competitive in the market
.Therefore there was a research gap to see how strategic leadership has been implemented within SMEs in
Zimbabwe’s fast food retail sector.

According to research carried out by Manell and Walas (2017) Strategic leadership has a positive impact on the
performance of SMEs in the fast-food retail sector in developed countries. (2018) indicated that strategic
leadership has no significance on the performance of SMEs in the fast-food retail sector. Most research have
Ashmil been conducted in Europe, Middle East and Asian counties which are developed countries This study

5
sought to determine if strategic leadership has an impact on organizational performance of SMEs in fast food
retail sector in developing countries and Zimbabwe in particular. The prior research was conducted within
organizations of developed countries and leaving a gap on the developing countries like Zimbabwe.

SMEs are regarded as foundations of economic dynamism, competition, innovation, and employment in any
economy particularly in developing countries. Tarik (2015) indicates that SMEs have the capacity to spur
speedy economic growth and contributing to creation of employment opportunities. Zubair (2018) indicates that
small and medium scale enterprises are expected to provide the driving force for the industrialization and
overall development of the economy. Machapa (2017) alluded that they are expected to play significant roles in
meeting some basic economic and industrial developmental objectives. In Zimbabwe SMEs contribution to
employment is pegged at about 75%According to ZIMRA reports (2018), SMEs in the fast-food retail sector
contribute 9.57 percent of tax revenue, indicating that they have the potential to contribute more to the economy
if properly managed because they employ the majority of the population. There is evidence of a lack of strategic
leadership in most organizations as evidenced by the tendency to focus on goals that address short-term needs
rather than long-term needs, and their decision-making ability is reactive rather than proactive (Wang et al,
2011). According to Zimbabwe’s business report (2016) SMEs are mostly run by owners and relatives, and
most of the financing is provided by the owners, most of the time owners fail to recognize the importance of
external sources of capital in influencing business expansion. Matewa (2018) reported that most SMEs in the
fast-food retail sector run with limited resources thus even the staff they employ at times will not be very skilled
lacking the driving force to expand the business. The study sought to determine how strategic leadership
practices have been implemented within SMEs in Zimbabwe.

1.3Problem Statement

Strategic leadership has been predominant among large corporates world over and strategic practices are the
main driving forces for the success of these organizations. In Zimbabwe the 1980’s and early 90’s era the
economy was being dominated by large and multinational organizations as the main players. There were few
small to medium enterprises and they operated on a very low scale. However, the late 90’s into the 21 st
Zimbabwe witnessed a collapse in the economy and presented a crisis within the economy and led to the closure
of many large organization. The economic meltdown came with the closure and collapse of many big corporates
leaving the space for proliferation of small and medium enterprises as the main players in the economy. The
evidence of strategic leadership and how it influences the performance of corporates around the world has
6
primarily come from large established organizations. SMEs which have become major players in the economy
in the twenty-first century, taking over many sectors are suffering in terms of growth and continuity. The
purpose of the study was to discover how strategic leadership affects the performance of SMEs. There is a
research gap in the SMEs sector because the primary focus of strategic leadership has been on large
multinational organizations.

Previously, similar studies on strategic leadership have been conducted by Jahela and Machula (2017) in
Europe, Faraz et al (2012) in Asia, Hassan (2018) and Irtamel (2018) Middle East, North and the focus being on
large organizations. To the best of the researcher’s knowledge, there were few studies that addressed the impact
of strategic leadership in Zimbabwe. Therefore, the current study sought to examine the impact of strategic
leadership on SMEs in Zimbabwe.

1.4Conceptual Framework
objectives

Figure 1.1 Conceptual Framework.

Source: Conceptualized from Krupp and Schoemaker (2013) and Basher (2016)

1.5Research Objectives

7
1. To ascertain the effect of leadership's ability to anticipate threats and opportunities on achievement of
organizational goals.
2. To ascertain whether challenging the status-quo influences employee effectiveness
3.To assess the effect of strategic aligning on organizational culture
4.To examine the link between strategic leadership through learning and customer satisfaction
5. To determine the impact of leadership’s ability to interpret the environment on growth in profits

1.6Research Hypothesis
H1- leadership’s ability to anticipate threats and opportunities has a significant and positive effect on meeting of
organizational goals
H2- leadership challenging the status-qou has a significant and positive effect on employee effectiveness
H3- Strategic aligning has a significant and positive effect on organizational culture
H4- strategic leadership through learning has a significant and positive effect on customer satisfaction
H5- leadership’s ability to interpret the environment has a significant and positive impact on growth in profits

1.7 Significance of the study

1.7.1 Significance to Theory
To the best of the researcher’s knowledge, most research about strategic leadership that were carried out
concentrated mainly on large organizations and nothing much has been done on the SME’s sector, in
Zimbabwe. This study would therefore bring new insight in the area thereby contributing to the body of
knowledge on the impact of strategic leadership on organizational performance of SME’s

Results of the study would be important since they could serve as a foundation for future investigation. It was
expected that academics would also make references and deductions from the study’s results and conclusions
since it would provide more knowledge to the existing literature in the field of strategic leadership and SMEs
performance.

1.7.2 Significance to Practice

This study could help to better understand the impact of strategic leadership to small and medium enterprises in
Zimbabwe’s Zimbabwean SME’s sector has been one of the dominant sectors of the economy in the 21 St
Century and this research will be beneficial as it will improve strategic leadership practices that will benefit
organizations.

8
The results and recommendations of this study could benefit Small and Medium Enterprises in Zimbabwe to
have strategic visions that helps businesses to grow and expand to large organizations. This study provided
new insights to SMEs on strategic leadership issues. We are living in a world with an ever-changing
environment which means organizations must be alert always and act accordingly. There are new problems
emerging every day that require new solutions. This study sought to help to find out how best strategic
leadership can be the best practice that drive organizations forward.

1.8. Delimitations of the study

1.8.1 Geographical scope

The research was mainly focused on SMEs in Harare in the fast-food retail sector because of covid-19
restrictions.

1.8.2 Period Scope

The study focused on SMEs in the fast-food retail sector from 2000- 2020 because it is the era in Zimbabwe that
saw the rise of the SME sector.

1.8.3 Theoretical Scope

The study examined relevant theories in relation to research goals. The study focused on the trait theory and
upper echelon theory. The study also focused on the independent variables of strategic leadership which are
anticipate, challenge status-quo, interpret, align, and learn. The dependent variables were achievement of
organizational goals, employee effectiveness, growth in profits, organizational culture, and customer
satisfaction.

1.8.4 Methodology Scope

The study adopted the positivist philosophy because the study is quantitative in nature. A survey research
design was adopted which involved collecting data from respondents via questionnaires 20 fast food retail
outlets were used in the study and a sample size of 100 respondents. The respondents were owners, managers,
and operational workers in the food outlets. A closed fixed-response self-administered questionnaire was used
to collect primary data from study participants. Completed questionnaires were serially numbered and checked
one by one by the researcher for completeness, errors, and inconsistencies.

9
1.9 Research Assumptions
The researcher assumed that:
· The information provided was correct.
· The researcher found all necessary information required in the study
· The respondents were interested in finding answers to the problem
· The researcher also assumed that the respondents understood the terms used in the questionnaires.

1.10. Limitations of the Study

The research focused on the impact of strategic management on organizational performance of small to medium
enterprises in Zimbabwe. Given the way the organizations are structured it was difficult to get information from
the respondents as they were not willing to give out information because of confidentiality reasons. Also
bearing in mind the current covid-19 situation it was difficult to get respondents because of restrictions within
organizations. However, the researcher had to make the respondents sign confidentiality forms to guarantee
them that they will remain anonymous, and data was sent through email to avoid many interactions with
respondents.

1.11 Definition of key terms

Strategic Leadership: Is the leader’s ability to visualize, plan, lead and make the best out of the resources they
have to execute strategies efficiently and successfully.

Organizational performance: It comprises the actual output or results of an organization against its intended
outputs or goals and objectives

Small and Medium Enterprises (SME’s): Small and medium sized enterprises consist of enterprises which
maintain revenue, assets below a certain threshold and employ less than 250 persons.

1.12. Chapter Summary

10
This introductory chapter presented the background to the study, the research problem statement and
contextualized these through clearly stated research objectives and hypotheses. A discussion of the significance
of the study was done, with emphasis on the relationship between strategic leadership and organizational
performance, to both theory and practice. The chapter also discussed the scope of the research in terms of the
study focus, time, geographical and population limits of the research in brief. The researcher outlined the
conceptual framework used to investigate the determinants of organizational performance through strategic
leadership. Lastly, the chapter described the limitations that the researcher encountered during the study.
Subsequently the rest of the study comprised: Chapter 2- Literature review which was a review of literature
pertaining to the topic of research; Chapter 3 –Research Methodology; Chapter 4- Research findings, data
presentation and analysis; Chapter 5- Conclusions and recommendations.

1.13. Organization of other chapters

· Chapter 2 Focused on literature review, the introductory part introduced the literature to be reviewed
followed by the discussion of the underpinning theories to the study, a review on literature on how
leadership's ability to anticipate threats and opportunities affects the achievement of organizational
goals., how challenging the status-quo influences employee effectiveness, how strategic aligning
influences organizational culture. how strategic leadership through learning affects customer
satisfaction. Determining the impact of leadership’s ability to interpret the environment on growth in
profits and conclusion on literature reviewed.

· Chapter 3 Focused on the research methodology covering the philosophical Framework, research design,
target population, sample framework and sampling methods, data sources, research instruments,
questionnaire administration, validity and reliability of research instruments, ethical considerations and
data analysis and presentation.

· Chapter 4 focused on data analysis, interpretation and presentation of findings resulting from the study.
The information was presented in the form of tables, and figures. The data was analysed using both
descriptive and inferential statistics. Descriptive statistics were used to analyse the sample
characteristics and qualitative section of the survey questionnaires.

· Chapter 5 This final chapter of the research paper focused on the conclusions and recommendations
emerging from the study. The research objectives were recapped, and the achievement of each objective
11
 was assessed. The contribution of the research to the body of knowledge was also highlighted. The
chapter concluded with suggestions of areas of further research.

CHAPTER 2
Literature Review

2.0 Introduction
This chapter covered a review of literature of the impact of strategic leadership on organizational performance
of SMEs. This chapter covers the underpinning theories to the study. Definition of strategic leadership and
organizational performance. Followed by a review on literature on how leadership's ability to anticipate threats
and opportunities affects the achievement of organizational goals., how challenging the status-quo influences
employee effectiveness, how strategic aligning influences organizational culture. how strategic leadership
through learning affects customer satisfaction. Determining the impact of leadership’s ability to interpret the
environment on growth in profits. The chapter ended with a summary of the literature reviewed.

2.1 Theories Underpinning the Study

2.1. Upper Echelon Theory

The upper echelons theory is a management theory published by Donald C. Hambrick and P. Mason in 1984. It
states that organizational outcomes are partially predicted by managerial background characteristics of the top-
level management team. Upper echelon theory (Hambrick and Mason, 1984) proposes that strategic decisions
are linked to the management characteristics of an organization. A TMT is a group of top-level managers and
directors within a company who have specific expertise in areas that will allow an organization to make
informed decisions (Finkelstein and Hambrick, 1996). This expertise encompasses an individual's tangible and
intangible knowledge and characteristics. Individual characteristics and cognitions, according to Hambrick and
Mason, are formed through experience, education, and personal values. These shape top managers' cognitions,
which in turn influence the way they analyze and respond to situations, as well as the strategy they choose for
the organization (Kaplan, 2005).

The main highlight of this theory is that firms are replications of the intellect and ideals of their top leaders
(Hambrick and Mason, 1984). Principles and inclinations of top leadership will affect their review of the
12
environment, and the selections they make about the strategy of the organization. Over a given duration, the
firm comes to mirror the leader. The theory was further refined by Hambrick, (2007) by introducing two further
moderators: managerial discretion and executive job demand. The upper echelon theory offers that a firm’s
outcome is directly related to the extent of managerial discretion that exists. Managers with higher discretion
have a higher opportunity to influence the employees. This theory helps on identifying the qualities of strategic
leaders and how they influence the organization. The intellect ideas of strategic leaders such as aligning and
challenging the status quo come because of their intellectual ability and it replicates their actions. This theory
forms the basis of how strategic leaders scan and review the environment. According to this theory strategic
leaders align the business vision and firms are a mirror of their leaders which is supported by challenging the
status quo.

2.1.2 Trait Theory

Psychologist Gordon Allport was among the firsts to come up with a personality trait theory. He came about
with an astounding discovery in 1936, which showed that more than 4000 words in an English language
dictionary described personality traits Allbort viewed traits as building blocks of personality. According to him,
there are three classes of traits.

Cardinal Traits: Cardinal traits are the traits around which a person organizes his whole life. Allport suggested
that these traits are developed later in life and are in fact quite rare. But these traits play such an important role
in a person’s life that they often become synonymous with the names of the person. Meaning, a person might be
specifically known for these traits. E.g.: greed, lust, kindness, narcissism.

Central Traits: Traits representing major characteristics of a person are referred as central traits. These can
also be considered as the characteristics that lead to the foundation of an individual’s personality. Example of
central traits: shy, anxious, intelligent, dishonest.

Secondary traits: Secondary traits refer to the general behaviour patterns that only appear under certain
circumstances. An example would be getting nervous to speak in public.

Trait theory help in identifying traits and qualities that are instrumental when leading others. Such traits may
include honesty, responsiveness, decisiveness, good decision-making skills, and likability. On another hand, not
one of these traits, will assure a successful leadership. Traits are outward manners that crop from the items

13
running within our subconscious that impart on effective leadership. Leader effectiveness is the extent of
inspiration a leader has on the how an employee or employees perform, how they are satisfied, and how
effective they are (Derue et al, 2011). Research performed on failure and achievement by McCall and
Lombardo (1983) recognized four main traits through which one can fail or thrive: how one is composed or
stable emotionally: how confident or calm one is under a stressful challenge, how one agrees to mistakes, how
one takes up responsibility for mistakes, adequate relational skills: excellent communication and persuasion
skills: masterly of extensive range of disciplines instead of a narrow-focused expertise.

The main criticism of this theory is that it pegs effectiveness of a leader on inborn emotional mechanisms and
restricts the importance obtaining skills through 15 imparting knowledge on individuals through school (Pervin,
2004). At times, inborn traits are not as rigid or important when leading as the theory supposes. The theory does
not consider circumstances that might affect the outcome given separate scenarios call for separate behaviors
from leaders. This theory forms the basis of this study. When looking at the traits of strategic leader it is through
how a leader response to situations that allows them to learn. Strategic leaders’ ability to learn results in good
decision making. Also, the decisiveness trait enables strategic leaders to decide and act on time on the
interpretations of what is happening around the environment.

Conceptual framework

Independent Variable Dependent Variable

Strategic leadership Organizational Performance

• Anticipate • Achievement of
organizational goals.
• Challenge status- quo • Employee effectiveness
• Interpret • Growth in profits
• Organizational culture
• Align • Customer satisfaction
• Learn
Fig 2.1 Conceptualized from krupp and Shcoemaker(2013)
and Basher (2016)

14
2.2 Conceptualizing Strategic Leadership

According to Stanely (2012) Strategic leadership can be defined as utilizing strategy in the management of
employees. It is the potential to influence organizational members and to execute organizational change.
Strategic leaders create organizational structure, allocate resources and express strategic vision. Strategic
leadership is a visionary leadership style that may involve both formulating and sharing a clear vision for future
organisational success, as well as motivating and persuading employees to subscribe to that vision. Wellington
and Brandik (2015) indicated that Strategic leaders work in an ambiguous environment on very difficult issues
that influence and are influenced by occasions and organizations external to their own. The main objective of
strategic leadership is strategic productivity. Another aim of strategic leadership is to develop an environment in
which employees forecast the organization’s needs in context of their own job. Masjid (2017) indicates that
strategic leaders encourage the employees in an organization to follow their own ideas. Functional strategic
leadership is about inventiveness, perception, and planning to assist an individual in realizing his objectives and
goals. Strategic leadership requires the potential to foresee and comprehend the work environment. Strategic
leaders anticipate changes in the environment, challenge the status quo, Interpret the environment, align, and
learn the needs of the customers.

2.2.1 Leadership's Ability to Anticipate Threats and Opportunities.

According to Masala (2018) a dedicated, strategic leader is constantly vigilant in their observations of their
market segment and related environment. They constantly sharpen their ability to anticipate any signals of
change they may see. The downfall of many leaders is that they do not allocate time to detect vague or unclear
threats or opportunities flitting around the edge of their business. Bejut and Khamad (2016) indicates that
anticipating is not just about researching what your competition might be planning next although, depending on
your professional role, that may be important. What is always important is the development of interpersonal
leadership skills such as active listening, to anticipate what is happening amongst the employees and the market.
For instance, by observing and understanding the challenges your team face, you can anticipate and take
strategic action to overcome resistance to change or resolve potential conflicts before they escalate.

According to Smith (2017) Strategic leaders are constantly vigilant, honing their ability to anticipate by
scanning the environment for signals of change. They develop and maintain an external mindset. Once a
company becomes the master of its own universe, seeing new developments in adjacent markets becomes

15
harder. The paradox is the more humility we have about our ability to make predictions, the more successful we
can be in winning the long game. The ability to anticipate threats and opportunities within the market enables
organization to have a leverage on the competitors. According to a study by Maxnath(2017) Strategic leaders
anticipate threats and opportunities which enables them to run organizations successfully.

2.2.2 Challenging Status-quo

Niraj and Pranav (2018) indicate that strategic leaders challenge their own, and in turn others’ assumptions, and
encourages looking at problems and opportunities through as many different lenses as is possible. This enables
them to take decisive action with greater confidence and understanding of the direction they are steering in.
Willace (2017) alluded that strategic leaders question the status quo, they practice promulgating outside
perspectives to see complex issues in context, and practice deep self-reflection to confront outmoded beliefs,
faulty assumptions, and stubbornness in yourself and others. According to Kampala (2018) challenging the
status quo enables to come up with different solution to some of the problems that are faced within the
organization. This is made possible because people will not be confided to a certain assumption only, but
different perspectives will be considered.

Bagshaw (2017) indicates that challenging the status quo is critical if we are to prosper in our businesses and set
ourselves apart from the competition. The world of commerce is cruel, fast paced, and change is happening by
the day and by the hour. According to Wagner (2014) externally, the status quo is yesterday's business. If you're
doing things the way you always have, you know by now that someone, somewhere is figuring out how to make
you obsolete. They're figuring out how to provide what you provide for a tenth of the cost, or how to provide it
ten times as well as you do, and at better margins. Wendell (2018) indicates that internally, the impact of the
status quo is a stagnant culture that pushes away top performers, best employees are driven by the need to do
something great. Strategic leaders challenging the status quo allows employees to have a sense of doing
something great which will challenge their working skills and allows them to be more productive. A past
research by Pranav (2016) concluded that strategic leaders challenge the status quo and enables the organization
to be more effective.

2.2. 3 Strategic Aligning

Mwanawasa(2018) indicates that to align people strategically requires a notably proactive approach to
communication, one will also need to build trusting and trustworthy relationships and have frequent contact or

16
engagement with people. The leader cannot work alone, in a vacuum, with people not knowing or
understanding what they are trying to achieve. No matter how well strategic leaders anticipate, challenge,
interpret and decide on strategy, if they do not alienate people, will be hard time making that vision a reality all
by yourself. According to Yaveil and rashmid (2017) strategic leaders engage stakeholders to understand
change readiness, manage differences and create buy-in. According to  Organizational Alignment
Research(2017), the proper alignment of strategy, culture, and talent allows organizations to grow revenue 58%
faster, be 72% more profitable, retain customers 2.23-to-1, and to engage employees 16.8-to-1.Strategic leader
align the vision of the organization thus playing a pivotal role to ensure that everyone knows what they are
supposed to work towards.

Shavan and Prinknet (2016) indicates that strategic leaders align people to the vision of the organization.
Openly communicating and giving hints where people will not have a clear picture so that employees will know
what they are working towards. Mwanjalu(2017) alluded that strategic leaders are visionary leaders and they
want to incorporate everyone in the vision of the organization so that no feels like they are left out or not being
values within the organization. They take their time with patience to help the whole team understand what the
organization is working towards. According to a study by Yuveer et al (2018) leaders who align their vision to
the team achieve effective results and their organizations tends to perform better.

2.2.4 Effect of Strategic Leadership through Learning

According to Sirav (2017) true strategic leadership supports and promotes individual and organisational
learning and development. On a day-to-day basis, this means practising and actively encouraging a culture of
enquiry and often means valuing progress above perfection. Hundermark (2016) states that strategic leadership
allow people to make mistakes and learn lessons from both successful and unsuccessful outcomes. Foster an
environment where people can look back unashamedly at honest mistakes and perceive them in an open and
constructive way to find the hidden lessons.Mwalasa and Karanga (2018) alluded that strategic leaders don’t
hold onto regrets, and they don’t punish; they learn from their mistakes and encourage others to do the same.
Jack et al (2015) indicates that strategic leaders continuously reflect on successes and failures to improve
performance and decision-making. The learning organization still doesn’t have much of a foothold in the
business world, despite skyrocketing uncertainty. Leaders must make their moves when the future is still
ambiguous. If an organization is continually learning, then everyone is primed for change and ready to move as
needed. A study In Pakisatn by Jiravik and Monk (2016) indicates that strategic leaders promote organizational

17
learning. There is a positive relationship between strategic leadership learning organization and such
organizations strive better in the market.

2.2.4 Leadership’s ability to interpret the environment

According to Henry and Damford (2016) strategic leaders amplify signals and connect multiple data points in
new and insightful ways to make sense of complex, ambiguous situations. Leaders get blindsided not so much
because they aren’t receiving signals but because they aren’t exploring alternative interpretations, or they get
locked into one view of the issue.Sarav (2015) alluded that leadership ability to interpret the environment
allows for preparedness for change and move with trends happening in the market. While strategically
anticipating and challenging things as a leader, they will often end up with a mound of complex, and often
conflicting, information. Hence, before you getting to the decision-making part of leading strategically, there is
need for appropriate skills to interpret all that data. Rodger (2018) indicated that whether a leader is managing
people or numbers, they need to push through any ambiguity and try to seek any new insight you can get from
it. There is need to identify facts, and then consider how they fit into the bigger picture to identify any hidden
implications you may not have already seen.

According to DePalma(2016)leaders with effective interpretation skills seem to see the unseen, understand what
others don’t, get to the heart of a matter, and have a unique perspective on current conditions which influences
their vision of the future. Applying their interpretation skills enables them to effectively translate their unique
situational understanding into the right activities for productivity and performance. Past research by Hajil and
Frakan (2016) indicates that strategic leaders can interpret the environment thus coming up with the correct
solutions to keep the organization moving.Past research in Malysia by Hijav (2016) indicates that strategic
leaders in the SME sector have a higher percentage of interpreting the environment they operate in because
they tend to interact with customers, suppliers and competitors at a close range and can quickly tell the changes
happening.
However a research by Kurat and Sabar (2017) states that interpreting and analyzing the environment is costly
and most organizations in SME sector cannot afford.

18
2.3 Conceptualising Organizational Performance

Organizational performance, according to Kendra (2020), entails analysing a company's performance in relation
to its objectives and goals. In other words, organizational performance is the comparison of actual results or
outputs to intended outputs. The achievement of organizational goals, employee effectiveness, profit growth,
organizational culture, and customer satisfaction are used to assess performance.Maverick (2019) alludes that
management of organizational performance can help a company ascertain that it is realizing minimum allowable
standards that are necessary for continued existence. These could be standards pertaining to environmental
safety or legal provisions. MacAdams (2018) alluded that appraisal of the company communicates a clear
message of expectation to the employees and how much output is expected from them. According to
Bashman(2017) feedback from customers ,growth in terms of profits, a good organizational culture and meeting
organizational goal are among some factors that indicate how well and organization is performing. They are key
indicators that an organization take note of to see how well it is performing.

2.3.1 Achievement of organizational goals as a measure of organizational performance

Maluju (2016) alluded that one of the most common ways to evaluate organizational effectiveness and
performance is how well a business achieves its stated goals. An organization has set goals that it seeks to
achieve which are the driving factors that keeps it goals. According to Kendry (2018) organizational goals
include increasing market share, expanding operations, increasing profits among other factors’ set targets are
the factors that shows where the organization is going. The achievement of goals is used as a measure of
organizational performance. When an organization expands its market share and there is an increase in financial
position and achieves its goal it shows that the organization is performing well.

According to Barney and Griffin, organizational goals serve four basic functions, they provide guidance and
direction, facilitate planning, motivate, and inspire employees, and help organizations evaluate and control
performance. Wendell (2017) alluded that a comparison on the input and output of the organization shows how
an organization is performing. Goals are set within an organization and given a timeline when they should be
achieved. Zubal (2017) went on to say that the results for progress will be checked against what was initially set
and when it was supposed to be achieved. When the organization can meet the deadlines of goals set, and
everything done according to set standards it will be an indication that it is performing well.

19
2.3.2 Employee Effectiveness as a measure of organizational performance
Jammaik (2017) indicates that effectiveness means ‘doing the right things or occupying oneself with the
right things Effectiveness is essential for improving results; and to perform effectively, clarity is needed, if
employees do not know what results are expected of them, there is a risk that they will work but will not
perform. They are not doing the right things and so contribute insufficiently to the success of your
organisation. Mabaso and Nkalatha (2016) are of the notion that working effectively and efficiently are clear
signs of a good performance, although variables are interdependent. But not only do the variables influence
each other, they also influence and are influenced by other factors. Role clarity, for instance, is key for
employees to be able to work effectively and efficiently. Role clarity is instrumental to a good, productive
working atmosphere. According to Mannaseh (2017) if employees know what their tasks are, the best way is to
perform their duties, and what the priority for each task is, they will feel less pressure while working and will be
more productive. Having a clear picture of their role paves the way for effective and efficient
working. Moreover, it will stimulate employees to invent even more effective and efficient ways to achieve
their, and the organisation’s, goals. This has a direct influence on performance.

Krushman (2018) alluded that leadership also plays a big part in role clarity and productivity. A supervisor
or manager portraying great leadership will motivate employees and provide clarity and feedback wherever
necessary; thus, enabling his employees to go the extra mile, to work more effectively and efficiently and to
produce more with less effort. Satish (2019) indicates that the effectiveness of employees is used to measure the
performance of organization, when employees are effective it means they are more productive and produce
more in terms of sales and products. According to a study by Perez (2019) the more employees are effective the
more the organisation performs better because they will be able to meet production targets, supply products to
customers on time and be competitive in the market thus resulting in good organizational performance.

2.3.3 Organizational Culture as a measure of organizational performance

According to Deal and Kennedy (2004) organizational culture includes an organization’s expectations,
experiences, philosophy, as well as the values that guide member behavior, and is expressed in member self-
image, inner workings, interactions with the outside world, and future expectations. Culture is based on shared
attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are
considered valid. A deeply embedded and established culture illustrates how people should behave, which can

20
help employees achieve their goals. This behavioral framework, in turn, ensures higher job satisfaction when an
employee feels a leader is helping him or her complete a goal (Tsai, 2011). Encouraging employee motivation
and loyalty to the company will create a healthy culture. Training should be provided to all employees to help
them understand the new processes, expectations, and systems.

Organizational culture set the tone on how employees behave and how operations are done within the
organization. It sets out the procedures and what is expected for people to do. According to Jadren (2017)
organizational culture enables workers to know the expected output in certain context and they know how to
treat customers, resolve conflicts, and carry themselves around. Due to that set bars it enables leadership to
track and see if people are doing what is expected thus ascertaining whether the organization is performing
well.A study by Slovick and Practish (2017) indicates that there is a positive relationship between
organizational culture and performance. An organization with a well-defined culture has direction which
employees follow and makes it easier to work thus being more productive and positively affecting the
performance.

2.3.4. Customer Satisfaction as a measure of organizational performance

Selous (2016) indicates that customer satisfaction is the key to making or breaking brands. In this competitive
world of a huge number of brands, customer satisfaction must be focal to your customer strategy. No amount of
marketing campaigns and promotions will help you if your customers are not satisfied. According to Zolasko
(2018) when a business has high customer satisfaction it cuts on costs promotional costs which result in better
performance of the organization financially. Chambers (2020) indicates that the cost to acquire new customers
is 6-7 times more than retaining your current customers. This puts into perspective how vital customer
satisfaction is. Rather than spending huge amounts of money on acquiring new customers, spend a fraction of it
on improving your existing processes and systems to retain customers. This will go a long way in saving costs
and growing business revenue. 

According to Travick and Grensat (2017) customer loyalty and retention are the key indicators to show that
customers are satisfied with what the organization is offering. In some instances customers are given loyalty
cards which they use to get discounts when purchasing and these are issued out usually when one has been a
frequent customer to the organization .Mabwasa and Mulungu (2016) indicates that when a customer is satisfied
with services offered within the organization they keep on returning and bringing other customers along .That

21
trend of maintaining loyalty means they are satisfied with the brand and it’s a good indication to the
organization to show that it is performing well. Maintaining a good customer base of frequent customers gives
an organization a leverage in the market and an assurance that a shift in the environment will not affect it much
because they will have regular customers.

2.3.5. Growth in profits as a measure of organizational performance

According to Preshin (2016) every company needs to earn a profit to be successful. A positive bottom line on a
company's income statement is an indicator that the business is doing well. That bottom line, or net profit, is
essential for the company's continued growth and prosperity. Growth in profits is one of the measures of
organizational performance. When a company is increasing in profits it means it performing well and growing
overall. A study by Lauriel and Candice (2015)indicates that growth in profits has a positive effect on the
performance of an organization .Monoso (2016) concur with this study indicating that an increase in profits
indicated in statement of financial position is one of the key indicators that shows that an organization is
perfoming well.It will also indicate that the business is being able to cut costs, serving products on time to
customers which are some of the factors that are considered to ensure that the organization is performing.

2.4 Impact of Strategic Leadership on Organisational Performance

According to Macssen and Huddington (2017) strategic leadership influences organizational performance.
Strategic leadership is concerned with capabilities of creating a sense of purpose and direction, critical enablers
that allow interaction with key internal and external stake holders in pursuit of high performance (House &
Aditya 1997). Carter & Greer (2013) view of strategic leadership is anchored on the thinking and visionary
capabilities of strategic leadership whose aim is to create an organization that is transformative. Shoemaker &
Krupp (2015) argue that strategic leadership is not only concerned with the possession of unique abilities that
allows for the absorption and learning of new information and ideas but having the adaptive capacity to
appropriately respond to the dynamism and complexity of the external environment. A study by Mhkupe and
Mabala (2016) states that there is a positive relationship between strategic leadership and organizational
performance .Dawg(2017) indicates that organizations that are led by strategic leaders tend to be more alert to
what is happening in the market and also are more flexible to change which give them an upper hand in the
market and lead to good performance

22
2.4.1 Effect of Leadership’s ability to anticipate threats and opportunities on achievement of
organizational goals

Effective leadership is one of most essential parts of the overall method for an organization to sustain their
business in the face of problems caused by the rapid growth of the economic environment. (CabezaErikson,
Edwards, and Van Brabant, 2008) Leaders are the one who control and take charge of the operation of an
organization and good leaders can set optimistic goals and objectives while steering the operation of the
company towards those goals through effective strategies. Strategic leaders can anticipate the threats and
opportunities within the market and help the organization to achieve its goals. Abron (2017) alluded that when
the leader anticipates a threat in the market it makes it easier to come up with the right strategy to counterattack
the competitor and come up with a competitive advantage. The goal of the many organizations is to be the
biggest market share holder, and this can only be done through strategic leadership anticipating threats in the
market

Kadir et al (205) indicates that strategic leaders anticipate the threats and opportunities through talking to
customers, suppliers, and other partners to understand their challenges, conducting market research and business
simulations to understand competitors’ perspectives, gauge their likely reactions to new initiatives or products,
and predict potential disruptive offerings’ (2016) alluded that they use scenario planning to imagine various
futures and prepare for the unexpected, look at a fast-growing rival and examine actions it has taken that puzzle,
list customers that have been lost recently and try to figure out why, attend conferences and events in other
industries or functions. All these activities by strategic leaders give them a leverage over their competitors and
drive the organizational goals ahead.

Past research by Abdul (2015) indicates that strategic leaders are visionary leaders and are always ahead of
what can happen in the market and this enables them to achieve organizational goals .Maharj (2017) indicates
that strategic leadership is the backbone of ensuring that organizations meet their goals .According to Magabul
(2013) when leaders are able to anticipate the threats and opportunities within the market place they are able to
achieve better results and have a leverage over their competitors .A past research by Adiosa and Ozochuku
(2016) indicates that there is a positive relationship between leadership ability to anticipate threats and
opportunities and achievement of organizational goals. According to Akhasa (2013) strategic leaders can

23
identify threats and opportunities and this has an impact on organizational goals. However, Mombasa and
Khanu (2016) argued that strategic leadership is costly as it requires leaders who are more experienced and
affects the financial performance of an organization. The main goal of organizations is to make profit and
engaging strategic leaders is costly and has a negative effect on organizational goals. Dube (2018) is of the
notion that strategic leadership is for selected industries and mainly the large industries because they can afford
unlike SMEs.

2.4. 2.Effect of challenging Status-quo on employee effectiveness

According to Ashmid (2010) strategic leaders challenge the status quo Strategic thinkers question the status
quo. They challenge their own and others’ assumptions and encourage divergent points of view. Only after
careful reflection and examination of a problem through many lenses do they take decisive action. This requires
patience, courage, and an open mind. Because they can carefully examine problems it helps dealing with
employees where they are challenges and able to solve them amicably. According to Whitnel and Gabby (2010)
strategic leaders challenge the status quo which enables them to solve problems in amicable way. For
organizations to thrive they need leaders who can challenge what is in existence and come up with strategies
that motivate workers to offer more to the business. In a world that is everchanging and presenting a facet of
problems staying rigid at one place would not be ideal foe the business there is need for flexibility to adapt.
Maharaj (2018) indicates that employee effectiveness plays a pivotal role to ensure that the business grow and
meet its objectives thus affecting the performance. When there are challenges that arises within organization
and leaders. According to Niraj (2015) challenging the status quo is important because it can allow a company's
leaders to evaluate the way the organization operates and consider new ideas. This can promote creativity in the
workplace and encourage others to share their own ideas for innovations.

Campbell and Vujic (2017) indicate that in today’s world, you’ve got to challenge that status quo to stay ahead
of the competition. This starts with, leading by example, trying new approaches, welcoming fresh ideas, and
maintaining a mindset that embraces change. However, that culture of change will more fully flourish if you
reinforce the behaviors of those around you who are also open to change. According to Anderson (2016) the
more you spotlight positive change-related activities and good results, the more ingrained this thinking will
become in the organization. Pearson (2018) alluded that challenging the status quo allows innovation and
sharing of ideas as a team which sparks creativity and when employees are given a platform to contribute, they
perform better and are more productivity. When employees are productivity, the organization will perform
better and improve its operations.

24
According to Walas and Hugh (2012), there is a positive relationship between challenging the status quo and
employee effectiveness. According to Mahtam (2013), strategic leadership that challenges the status quo allows
employees to be more effective and efficient at work. Strategic leaders challenge the status quo and allow for
opposing viewpoints. However, Maluju (2017) stated that if not done properly, challenging the status quo has a
negative impact on employees and lowers morale, which leads to lower productivity. According to Blackson
and Andriack (2015), challenging the status quo can result in the organization shifting away from certain
practices that form the foundation of the business, resulting in failure and workers losing their direction.

2.4.3 Effect of Strategic aligning on organizational culture

According to Wendel (2015) Organizational culture is a system of shared assumptions, values, and beliefs,
which governs how people behave in organizations. These shared values have a strong influence on the people
in the organization and dictate how they dress, act, and perform their jobs. Every organization develops and
maintains a unique culture, which provides guidelines and boundaries for the behaviour of the members of the
organization. The type of leadership influences the organizational culture and how people behave. Tanner
(2018) indicates that leadership influences company culture heavily. Leaders can reinforce organizational
values by helping their people grow and develop through goal setting, opportunities, and recognition. Elevate
employees through frequent one-on-ones and regular two-way feedback. Chieneka(2016) alluded that when
employees have open and ongoing dialogue about their work, their trust in their leader strengthens. Strategic
leaders align the strategic vision of the organization and it in turn influences the organizational culture.

According to Dube (2017) Success depends on proactive communication, trust building, and frequent
engagement Strategic leaders Identify key internal and external stakeholders, mapping their positions on
initiative and pinpointing any misalignment of interests. Thahim and Kabur (2016) proposed that strategic
leaders look for hidden agendas and coalitions, use structured and facilitated conversations to expose areas of
misunderstanding or resistance and thus building a strong culture and values on how the organization operates.
Krutz and Powell (2018) further alluded that they reach out to resisters directly to understand their concerns and
then address them and that way they avoid conflicts within the organization which thus promoting a culture of
peace. According to Mckenzie (2015) They recognize and otherwise reward colleagues who support teamwork
and align them with the vision of the organization and the moment colleagues feel valued and appreciated they
are willing to work more and promote the culture of teamwork within the organization. The main strategy of the
25
business is what drives it and give a way to which operations must be done. When strategy is aligned workers
know what they are supposed to be doing and it influences the culture of the organization.

According to previous research, strategic leaders play a role in aligning the organization's vision and
communicating it to employees, which influences how people speak and carry themselves around the
organization. According to Ashmek and Amel (2016), aligning the strategic vision of the organization has a
positive impact on organizational culture. When employees understand what they are working towards, the way
they work and carry themselves improves, and the organization performs well. However, Barron and Candice
(2017) argued that strategic leadership alignment has no effect on organizational culture because lower-level
employees may not understand the strategic visions and thus will not align.

2.4.4 Effect of Strategic leadership through learning on customer satisfaction

According to Matew (2015) Strategic leaders are the focal point for organizational learning. They promote a
culture of inquiry, and they search for the lessons in both successful and unsuccessful outcomes. They study
failures—their own and their teams’—in an open, constructive way to find the hidden lessons. Reward
managers who try something laudable but fail in terms of outcomes. Conduct annual learning audits to see
where decisions and team interactions may have fallen short in terms of meeting the needs of the customers.
Identify initiatives that are not producing as expected and examine the root causes. Create a culture in which
inquiry is valued and mistakes are viewed as learning opportunities. Customer satisfaction is key to ensuring
that business retains its customers and maintains loyalty according to Billy and Ghuston (2016). Learning about
the customer needs is crucial for every business to stay afloat and competitive in the market. Business must
know what the customer preferences are, as it varies according to the segment and age among other factors.
According to Magdij and Jackson (2017) strategic leaders promote organization learning. They understand that
they must continuously learn more about the surroundings and the needs of the customers if they are to offer the
best service. When an organization realises what the needs of the customers are and offer the best of service
customers in turn are satisfied and thus sales increases and profits realised which boosts the performance of the
organization.

According to Wavan and Odgi (2016) The importance of customer satisfaction is that it maintains client loyalty
through exceptional customer service, which, in turn, can lead to growth in market share and profitability.

26
Customer satisfaction also generates a positive company image. Client loyalty is essential for business growth,
but it cannot exist without customer satisfaction. When customers know that they are getting their money's
worth for a company's products or services, they are likely to come back, especially if they have had a good
experience with the company's employees. Hajib and Ikena (2017) are of the notion that loyal customers are
likely to spend more money, which can increase the company's market share and profitability, so maintaining
client loyalty is an example of how important customer satisfaction is. A positive company image is also created
through customer satisfaction. Satisfied customers will refer their friends and family members to businesses
where they have received exceptional customer service. As a business grows in popularity, it will be better able
to compete in its market. Strategic leaders ensures that they know and learn about the needs of the customers
and result in customer satisfaction.

Strategic leaders create a learning environment and learning organization where people continue to learn and
find ways to improve operations daily. A past research by Macknif and Jahel (2014) indicates that strategic
leaders create a learning environment within organizations that allows them to know the needs of the customers
and lead to customer satisfaction. That extra mile the business to learn about the needs of the customers has
caused customers to be satisfied and the business is growing research by Mahum (2011) states that learning
about the customers needs can be very costly to the business but the end results of loyalty of customers is
something organizations rely on for the growth. Makhasi and Diboni (2015) indicates that strategic leaders
create a learning environment which allows the organization to know more about its customers and lead to
customer satisfaction. However, Makhuni (2017) argues that strategic leadership focuses more on learning the
needs of customers which becomes more costly and affects the performance of the organization in general

2.4.5 Impact of leaderships ability to interpret the environment on growth in profits.

According to Hoffman (2016) leaders who challenge in the right way invariably elicit complex and conflicting
information. That’s why the best ones are also able to interpret. Instead of reflexively seeing or hearing what
you expect, you should synthesize all the input you have. You’ll need to recognize patterns, push through
ambiguity, and seek new insights. Machussen (2015) alluded that the business environment is very complex and
requires leaders who have an eye that can interpret and come up with the right solutions. Ariel (2017) went on
to say that the VUCA environment which we are living in is ever changing and requires leaders who are vigilant
and able to interpret what is going on. According to Mafik (2013) strategic leaders can interpret the
environment because they have the strategic eye to see what is happening around. The business environment is
characterized with many changes in terms of technology, economy, and politics. Mwanga and Chilau (2017)
27
noted that a leader must be able to interpret the environment and know what is happening around to stay
relevant in the market. Strategic leaders are known for being able to interpret the environment in which they
operate in. This enables them to stay relevant and keep abreast with the changes. The way an organization
adapts to the changes in the environment enables it to stay in tune with what competitors are doing and being
able to counterattack and retain its customers. When customers see that the organization is staying relevant and
moving with changes in environment, they remain loyal and thus being able to retain profits and grow more.

Growth in profit is the main goal for organizations because profit is the backbone for the survival of every
business. The more growth in profits means the business can expand and attract more investors and even expand
operations for growth. Strategic leaders are known for staying alert and knowing what’s happening around the
environment in which they operate in. According to Mashawi (2016) the ability to interpret the environment has
a positive impact on the profits. Understanding the business environment helps an organization to make realistic
plans and ensure their effective implementation. It also helps the business enterprise in identification of
opportunities and threats. Consequently, such an enterprise is likely to succeed in achieving its goals smoothly
& consistently.

Hundermark (2018) states that environment exercises vital control over the scope and performance of a business
firm. A proper understanding of the nature, character, and influence of the environment over the activities of the
firm and its continued efforts to identify with the changing economic conditions will at one stage enable the
business firm to exercise control over the environment itself. Siranju (2017) indicates this will result in a
smooth and successful running of the venture in the short run as well as in the long run. Thus, a clear
understanding of the environment shall bring many benefits, while a minimum disregard of these factors will
entail a heavy penalty to the firm. Karzin (2016) indicates that by identifying itself with the changing situations
and environment, the firm can gain the popular support and win the confidence of the consumers and others.
According to Carson (2016) this popular support will produce many chances for growth and development of the
firm Failure to understand the environmental factors for business shall create number of problems, which in fact
are difficult to solve. It will reduce the profit margin and will make the opportunities for expansion to slip.
Chiwetalu (2015) proposed that a proper appreciation of the environmental factors will bring many benefits.
Strategic leadership ability to interpret the environment has a huge impact on the growth in profits because it
enables a firm to gain leverage and stay competitive in the market.

28
According to Swiss (2017) there is a positive relationship between strategic leaders’ ability to interpret the
environment and growth in profits. A past research by Gandria (2015) indicates that strategic leadership has an
influence on growth in terms of profits, SMEs that practice strategic leadership tend to flourish more. Barada
(2016) alluded that Strategic leader are sensitive to the environment and know what to offer at the right time
thus affecting generation of profits in a positive way. Harshel and Badel (2016) in their research they indicate
that strategic leaders ability to interpret the environment has a positive impact in terms of growth in profits of
SMEs.

2.5 Literature Gaps

The reviewed literature above shows that strategic leadership has an impact on organizational
performance.Various studies in the SME sector were done in Europe,Asia ,Middle East and West Africa.This
study sought to fill in the literature gaps in Africa in developing countries such as Zimbabwe.A review of the
empirical literature presents mixed findings on the impact or how much of the variance in performance could
be causally linked to strategic leadership. This has been attributed to various reasons such as the different
methodologies used, conceptualization of the variables under the study and more importantly, contextual
factors. Additionally, performance differentials in the empirical literature could be because of the influence of
the external environment on the causal relationship between strategic leadership and performance. Empirical
findings on the effect of strategic leadership and organizational performance are equivocal. This lack of
consistency could be due. to differences in the definitions of the constructs, the role played by strategic
leadership and the mediating influence of organizational performance. In addition, since performance is a
multidimensional construct, how it’s conceptualized and measured makes it difficult for scholars to agree on the
casual link between strategic leadership and performance Several propositions have emerged from the reviewed
literature.

Many scholars who subscribe to the leadership school argue that the influence of strategic leadership on
performance is substantial (Hambrick & Quigley, 2014).However, others who endorse the constraint school
argue that such an influence is limited by contextual factors (Knies et al., 2016). Thus, the question of
whether strategic leadership influences performance is yet to be resolved given the findings as evidenced by the
recent scholarly debate (Quigley & Graffin, 2017;Fitza, 2014; 2017). However, most contemporary studies
using improved methodologies have generally found a positive relationship between strategic leadership and
performance mostly in developing countries. Empirical studies have demonstrated that strategic leadership is an
important determinant of organizational performance (Witts, 2016; Lord, et al., 2016). However, other studies

29
assert that strategic leadership is an inconsequential determinant of performance because of various constraints
they face or due to some randomness or chance effects (Fitza, 2017; Quigley & Hambrick, 2015)

2.6 Chapter Summary

This chapter focused on a review of literature of the impact of strategic leadership on organizational
performance of SMEs. This chapter covers the underpinning theories to the study. Definition of strategic
leadership and organizational performance. Followed by a review on literature on how leadership's ability to
anticipate threats and opportunities affects the achievement of organizational goals., how challenging the status-
quo influences employee effectiveness, how strategic aligning influences organizational culture. how strategic
leadership through learning affects customer satisfaction. Determining the impact of leadership’s ability to
interpret the environment on growth in profits and conclusion on literature reviewed and chapter summary. This
chapter was followed with chapter 3 which focused on research methodology.

Chapter 3
Research Methodology

30
3.0 Introduction
This chapter discusses the research methods used to assess the ‘Impact of strategic leadership on organizational
performance of SMEs in the fast-food retail sector’. This chapter focused on the following areas among others:
philosophical framework, research design, study population, sample size, data collection instruments, data
collection procedure, validity and reliability, ethical considerations, data presentation and analysis.

3.1 Philosophical Framework

The research philosophy adopted in this study was the positivist philosophy due to the mainly quantitative
nature of the study. This philosophy was used for this study because it follows a well-defined structure during
studies and discussions. Kumal (2017) indicates that Positivists believe that since there are set laws and rules
followed, there will be minimum room for error. Sirani (2018) suggested that analysing the impact of strategic
leadership on organizational performance requires the use of quantitative data. Likewise, this study adopted the
same approach. Most of the existing studies in strategic leadership and organizational performance, such as the
one by Muhamad (2017) use quantitative methodology. The studies use the exploratory approach and a
deductive research approach resulting in the researchers ascribing a positivist philosophy when examining the
impact of strategic leadership on organizational performance of SMEs. Likewise, this study being like those,
adopted a quantitative methodology and deductive approach resulting in the study going positivist.

The study objectives sought to establish the relationship between strategic leadership and organizational
performance. The study is based on a conceptual framework adopted from the reviewed literature.

3.2 Research design

This study adopted a survey research design, which involved data collection from respondents via
questionnaires to test the stated hypotheses. Studies conducted by Zubair (2018) in Malaysia, Muhammad
(2017) in Indonesia, Shivak and Samrai. (2015) in Japan, Samrat et al. (2016) in Morroco, Murano et al. (2015)
in Madagasca and Bolongiese (2014) in Brazil, are a few of the similar studies that informed the choice of a
survey research design. The technique used to test the hypothesis was factor analysis. The study findings had to
describe the relationship between organizational performance as the dependant variable and strategic leadership
being the independent variable. The study sought to explain the relationship between strategic leadership and
organizational performance. Furthermore, the study sought to assess strategic leadership in the small sector
where it is not mainly concentrated

31
3.3 Target Population
The participants were owners, managers, and operational workers in the SME fast food retail sector. The target
population of this study comprised the business owners and managers and some operational workers. The
business owners and managers were chosen as the study’s respondents because of their high degree of running
the business and being hands on with the operations, which placed them in a better position to comment on how
strategic leadership has an impact on organizational performance. Respondents were business owners and
general managers who are strategic decision makers in their organizations. The respondents were both males
and females.

3.4 Sample Frame and Sampling Method

A sample frame is a representation of all the elements of the population from which the sample is drawn
(Sekaran & Bougie 2013). In this study, the sample was drawn from business owners and managers, The
sampling frame in this study was 20 restaurants from which a sample size of 100 respondents was chosen. A
similar study conducted by Zubair (2018) in Malaysia had a sample of 25 out of a frame of 15747. This
represented 0.05% of the population. A sample size of 100, in the current study, represented 0.07% of the
population. This sample size was considered sufficient for the purpose of the study according Zakar and Abdul
(2017). All the registered SMEs fast food retail outlets at the time of the study qualified for sampling.

Sampling techniques, according to Bhattacherjee (2012), are grouped into two main categories namely
probability and non-probability sampling. The researcher used a probability technique in selecting the sample.
Simple random sampling, using the SME association database, was employed, to pick the retail outlets in
Harare. Every fast-food outlet in Harare had an equal chance of selection. The fast-food outlets were drawn one
at a time from the SME database, without replacement until the desired number of respondents to constitute a
sample was obtained.

3.5 Data Sources

Alkhahid (2018) defines primary data as the data that is collected for the first time through personal
experiences or evidence, particularly for research. It is also described as raw data or first-hand information

32
while secondary data is the data already collected or produced by others. According to Grishma and Aash
(2019) the main difference is that primary data is factual and original whereas secondary data is just the analysis
and interpretation of the primary data. This study made use of both primary and secondary data. Primary data in
this study was collected from research participants through questionnaires that were administered to the sample
of 120 business owners and managers. This was necessitated by the need to get first hand insights from the
business owners and managers in a bid to analyse the factors that impact strategic leadership on influencing the
performance of an organization. The secondary data sources included similar previous studies and data from
sources such as the Small and Medium Enterprises Association Zimbabwe Revenue Authority Website and the
newspapers. Secondary data was used for the background to the study, literature review, data analysis and
conclusion of the study.

3.6 Research Instruments

A pretested structured (closed) questionnaire was used to collect primary data from study participants. This was
chosen to match the nature of the research design. The structured questionnaire had an advantage because
responses were gathered in a standardized and objective way. The closed ended questions ensured that
respondents did not diverge from the subject and facilitated collection of data that was easy to quantify and
analyse. The sample size played an important role in achieving statistical significance. The structured
questionnaire was divided into 3 sections- Section A, B and C. Section A had questions about demographics,
which were nominal and ordinal scale. Section B covered strategic leadership and Section C covered
organizational performance questions. It consisted of questions whose responses were measured on a five-point
Likert Scale with ratings as follows; 1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree and 5 =
Strongly Agree.

3.7 Questionnaire administration

The questionnaires were distributed across multiple fast-food outlets to allow for collection of differentiated
views from the fast-food retail sector. The researcher administered questionnaires to the sampled owners,
managers, and workers. Questionnaire administration was conducted from the 10 th to the 24th of March
2022.The researcher had to hand deliver some of the questionnaires at the outlets and collected after them after
they had finished. Some questionnaires were sent to the respondents over email and returned once completed.

3.8 Validity and Reliability of the Research Instrument

33
According to Nicolas (2021) Validity refers to the accuracy of the measurement. Validity shows how a specific
test is suitable for a particular situation. If the results are accurate according to the researcher’s situation,
explanation, and prediction, then the research is valid. Pilot testing was done to refine the questionnaire and to
ascertain construct validity. The pilot study was carried out on six study participants. Preliminary analysis of the
pilot test data was done to ensure that the data collected enabled the investigative questions to be answered.
Other experienced researchers in Business Administration and statistical analysis assessed the questionnaire.
The purpose of involving these experienced researchers was to ensure that the questionnaire contained face
validity (Saunders et al., 2009).

At the same time, the reliability of the questionnaire, which examines the consistency of a concept measure, was
assessed. Although it is not possible to give an exact calculation of reliability, it is possible to give estimated
measures through different actions. A test- retest was applied, where the simplified questionnaire was
administered to the pre-test respondents, during the actual data collection. Cronbach’s Alpha using SPSS was
also employed to determine reliability.

3.9 Ethical Considerations

Ethical considerations are an essential aspect of any research, and they were observed before, during and after
the study. In this study, the researcher ensured that permission would be granted to conduct the study by seeking
approval from SME association. Nonetheless, it was undertaken according to the ethical standards and
procedures set for this type of research in Zimbabwe. To ensure that the identity of study participants was
protected, the researcher agreed to maintain in strict confidence the names of the participants and questionnaires
were numerically coded. Completed questionnaires were kept in a locked drawer of which the researcher had
sole access. The study participants had the right to withdraw from the research. The information they provided
was treated as anonymous, private, and highly confidential. This was made explicit on the questionnaire and
verbally reiterated during the data collection process.

3.10 Data Analysis and Presentation

Data was analysed using the Statistical Package for the Social Sciences, IBM SPSS Version 20 software. The
choice of the SPSS software was since it offers programs that assist researchers with complex data and allows
for the creation of graphics like density charts and radial boxplots, etc. (Folley, 2018). Since the main objective
34
of this study was to investigate the impact of strategic leadership on organizational performance, both
descriptive and inferential analyses were conducted using SPSS software and Excel. Structural Equation
Modeling (SEM) and specifically Confirmatory Factor Analysis (CFA) was used to test the hypothesis that
there was a relationship between the determinant and dependent variables. The analysis was the most
appropriate for determining the impact of strategic leadership. The respondents’ demographic attributes were
examined by using percentages. Data was presented using figures and tables.

3. 11 Chapter summary
This chapter on research methodology outlined the research methods that were used to satisfy the objectives
stated in chapter one. The research philosophy and research design were discussed, and justifications made. The
quantitative method was used, and the research followed a positivistic approach. Questionnaires were used as
research instruments. A sample of 100 respondents was used from the sampling frame of registered SMEs in the
fast-food retail sector. The respondents were selected using the simple random sampling technique. Validity,
reliability, and ethical considerations associated with the study were explained. The following chapter discusses
the data presentation, analysis, and the interpretation of the findings.

35
 Chapter 4
FINDINGS, DATA PRESENTATION AND ANALYSIS

4.0 Introduction
This chapter focuses on data analysis, interpretation and presentation of findings resulting from the study. The
information is presented in the form of tables, and figures. The data was analysed using both descriptive and
inferential statistics. Descriptive statistics were used to analyse the sample characteristics and qualitative section
of the survey questionnaire. The data collected from questionnaires will be evaluated and presented using
statistical software called SPSS and Microsoft Excel. The ensuing discussion is aimed at answering the research
objectives formulated in chapter one.

4.1 Presentation of results

4.1.1 Questionnaire Response Rate

The response rate indicates the magnitude or the degree of response from the data collection methods used by
the researcher. The researcher used simple random sampling which targeted 100 participants. 100
questionnaires were allotted to the business owners and managers and 94 responded. Table 4.1 shows the
response rate for the study. The response rate of the questionnaires was calculated using the following formulae:

36
 94
Response rate =
100

= 94%

Table 4.1 below shows the response rate from the questionnaires distributed.
Table 4.1: Questionnaire response rate

Source: Primary data (2022)    

The table shows that 100 questionnaires were administered and 85 were returned giving a response rate of 85%.
Many past studies show that it is difficult to obtain a response rate of 100%. It is common for some
questionnaires not to be returned, or to be lost. In the case of the above study, it was challenging to reach some
respondents who had previously accepted to be study participants, due to the amount of workload. Ashmid &
Pranav, (2015) alluded to a response rate of equal or more that 50% of the sample used as being succinct
enough to provide useable data to conduct a study. The current study had a response rate that was way above
50%.

37
4.1.2 Demographic data
Section A of the administered questionnaire consisted of demographic information of the respondents. The
tables and figures below show the demographic characteristics of the respondents in the study.

4.1.2.1 Distribution of respondents by gender

Source: Primary data (2022)

Figure 4.1 shows that of the 85 respondents more females (59 %) participated in the study than males (41%).
The statistics show that more females were reached and responded than their males’ counterparts. Gender
characteristic of the respondents showed that, most of the respondent’s equivalent to 59% were female against
41% who were male. This implies that, opinions presented by respondents in relation to strategic leadership and
organization performance may be skewed to one gender category. Therefore, the results obtained could be
attributed or inclined to a particular gender. This is also shows that the industry has more females than males.

Figure 4.1: Gender of participants

38
Table 4.2 Gender Statistics

4.1.2.2 Respondents’ Age

Figure 4.2 Age of respondents

Source: Primary data (2022)

39
Table 4.3 shows that most of the respondents were aged between 41-50 years and above 50 years has the least
respondents of 3 people. The results show that 52.95% are aged between 31-40 years which is an age where
most people are active on taking risks of opening businesses and working. The results show that the age
between 31-40 has the most respondents

4.1.3 Reliability Test

The questionnaire that was administered consisted of 5 constructs. Cronbach’s Alphas were calculated for each
construct to test the reliability of the items within each construct. Table 4.2 illustrates the reliability coefficients
of each construct used in the questionnaire.

Table 4.3 Reliability Coefficients

Source: (Primary Data 2022)

Table 4.3 shows the Cronbach’s alphas and in general a score of more that 0.7 Is usually ok. In this case the
alphas were ranging on 0.9 which is an indication that the data is excellent. It can be relied on because of the
higher values. The data obtained for the research was reliable and shows consistency.

40
4.1.4 Qualification Level

Table 4.4: Fevel of qualification

Most of the respondents were graduates which indicates that they open business mostly because of the high
employment rates prevailing in the world. The millennium era gave rise to entrepreneur wave which allowed
graduates to come from schools and open their businesses.45.89% of the respondents were graduates .24.70 %
were people with other qualifications.15.30% showed those had postgraduate qualifications which shows that
the industry has more graduates more than those with postgraduate qualifications.

4.1.5 Number of employees within the organization

Figure 4.3:

41
As per table 4.6 above, 34.11% of the organizations had less than 5 employees, 45.89% of the SMEs had
employees’ numbers between 20 and 30. 14.11% of the SMEs had between 31 and 40 employees and 5.89%
had employees between 41-50. The results above show that most SMEs prefer to have fewer employees given
their small size. In many instances the owner of the organization is the one who oversees the day to day running
of the firm and at the same time dealing with the governance function of the firm. They also keep the staff
numbers low to manage the costs of the organization.
Length of operation
Figure 4.4:

42
The length of operation of the organizations were sought. Table 4. shows that most of the SMEs were
operational between 4-6 years. 52.94% of the respondents indicated that their organizations had been
operational below 3 years, 52.94% indicated that they had been operational for between 4 and 7 years while
only 11.76% of the organizations had been operational for over 7 years. These findings show that most SMEs in
the fast-food retail sector do not survive beyond 7 years. This is because of the immense challenges they face in
the market such as competition from the other big firms, financing challenges, inadequate skills among others.
4.5 Descriptive statistics
The researcher computed descriptive statistics for each construct with the collected data in order to statistically
describe the impact of strategic leadership on organizational performance.

4.5.1. Effect of Leadership’s ability to anticipate threats and opportunities on achievement of

organizational goals.

The respondents had to specify the degree to which they agree that leadership’s ability to anticipate threats and
opportunities has a positive effect on the achievement of organizational goals. Descriptive statistics relating
leadership’s ability to anticipate threats and opportunities and achievement of organizational goals is shown in
Table 4.5below
Table 4.5: Leadership’s ability to anticipate threats and opportunities on achievement of organizational
goals.

43
The researcher sought to see how leadership’s ability to anticipate threats and opportunities has an impact on
meeting organizational goals.
From the results obtained it shows on question 1 that 40% strongly agreed that leadership can anticipate threats
and opportunities a good indication to show that leaders are alert.34.1% showed that organizations are meeting
the set objectives and goals. A clear indication that leaders are seizing opportunities in the food industry and
maximizing them.24.7% of the respondents indicate that they are not always alert to changes in the market
which could be as a result on not properly networking or visiting other organizations in similar industry to see
how they are operating. Majority of the respondents 34.1% agreed and 30.6% strongly agreed that company
performance analysis trends shows that organizations have a competitive advantage in the market. Which shows
that the goal of staying relevant in the market is being met by many organizations.
In conclusion the overall mean of 3.611 indicates that leadership ability to anticipate has a positive effect on
meeting organizational goals.
From question 2; 3.5% participants strongly disagree and 20% disagree to the statement that the organization is
meeting its set objectives and goals. 36.5% of the participants strongly agreed and 34.1% agree that

44
organization is meeting the objectives and goals and only 5.9 respondents were neutral. In conclusion the
overall mean of 3.8 indicates that the organization is meeting its set objectives and goals.

The respondents highlighted that the organization is always altered to changes in the market. To confirm with
the findings, 37,6% agreed and 25.9% Strongly agreed to that statement. 11.8% Strongly disagreed and 24.7%
disagreed that organization is always altered to changes in the market. In conclusion the overall mean of
3.411765 indicates that the organization is always alerted to changes in the market.

From question last question of this section, participants identified the company’s performance analysis trends,
according to the feedback 9.4% and 17.6% Disagreed that the company’s performance analysis trends show that
it has a competitive advantage in the market, 8.2% were neutral and 34.1% and 30.6% agreed on that statement.
In conclusion the overall mean of 3.588235 indicates that the company’s performance analysis trends show that
it has a competitive advantage in the market.

4.5.2. Effect of challenging the status quo on employee effectiveness

Past research on strategic leadership did not concentrate much on the effect of challenging the status quo on
employee’s effectiveness. The researcher sought to find its effect in a developing country context such as
Zimbabwe and these were the results found on table 4. Below.

Table 4:6 Challenging status quo and employee effectiveness.

45
Employees play a very crucial role to organizations and give shape to the overall performance of organizations;
different questions have been asked according to the table above.
The first question from the results obtained it shows that challenging the status quo improves employee’s
effectiveness.49.4% agreed and 29.4% strongly agreed that challenging the status quo employee’s effectiveness
which in turn influences organizational performance. That move by leaders to do things in a contrary accepted
way allows for flexible working terms and coming up with innovations appropriate for the situation makes
employees to be effective.5.9% tend to disagree which might indicate that some workers withing organizations
will be rigid and not willing to participate in change.24.7% tend to strongly disagree and disagree that there is a
good relationship between leaders and workers. This shows that challenging the status quo might mean getting
workers out of their comfort zone to achieve effectiveness within the organization thus resulting in some
workers not being happy and straining relations. This is also indicated by 25.9% respondents who showed that
employees are not willing to do things beyond what they are used to. It might be introducing new menus or
serving techniques to keep customers interested which the workers will be willing to try. the mean was 3.8706
which indicates that there is a strong link between challenging the status quo and employee effectiveness.

46
Second question the findings also showed that only 3.5% disagreed workers are effective and producing good
results and 8.2 % were neutral while most participants 35.3% and 52.9% agreed and strongly agreed that
workers are productive. The mean was 4.376471 which indicates that workers are effective and producing good
results.
The above chart also shows that 3.5% respondents strongly disagreed and 21.2%) of respondents disagreed that
There is a good relationship between leadership and workers. 10.6% are neutral, 32.9% agreed and only 31.7%
strongly agreed with the statement. The mean was 3.682353 which indicates that there is a good relationship
between leadership and workers
The results on table 4.6 above demonstrate that 3.5% of participants strongly disagreed and 25.9% disagreed
that employees are willing to try new things and they are not reluctant to do things beyond what they are used to
, 9.4% were neutral and had no preference. Most of the participants agreed with the statement. 32.9% agreed
and 28.9% strongly agreed that employees are willing to try new things and they are not reluctant to do things
beyond what they are used to. The mean was 3.564706 which indicates that Employees are willing to try new
things and they are not reluctant to do things beyond what they are used to which indicates that there is a strong
link between challenging the status quo and employee effectiveness.

4.5.3. Effect of strategic aligning on organizational culture

The researcher sought to find out if strategic aligning influences organizational culture. The results obtained are
shown in table 4.8 Below

Table 4.7 Below effect of strategic aligning influences organizational culture.

47
Table 4.7 shows that strategic aligning has an effect on organizational culture.47.1% of the respondents
indicated that there is strong organizational culture that is fostered within the organizations.42.4% agreed and
22.4 strongly agreed that organizational culture is aligned to the vision of the business. Thus, showing that
leaders are aligning the vision of the business to the culture enabling workers to know how they are supposed to
behave and what they are working towards. Due to aligning the business strategy and blending it with the
strategy 37.6% strongly agreed that it has yielded high performance among workers which increases
productivity.22.4% of the participants indicated that employees are not allowed to air out their views thus
showing that workers are not being given enough chance to say showcase their talents.4.7% of the participants
were neutral over this matter they did not express whether employees are being allowed or not. However, 23.5%
alluded that employee are being allowed to say out their views and come up with innovations. Which shows that
a good culture is being fostered which allows employees to be part of the organization and create a good climate
where they perform better and offer good services to customers. The overall mean was 3.406 which shows there
is a strong and positive relationship between strategy aligning and fostering a good organizational culture.

The following statement that the organizational culture is aligned to the vision of the business indicate that
11.8% strongly disagreed and 15.3 % Disagreed only 8.2% were neutral and 42.4% were positive and 22.4 %

48
strongly agreed on this question. The overall mean 3.406 was which indicates that workers are effective and
producing reliable results.

The above Table also shows that 5.9% respondents strongly disagreed, and 20. % of respondents disagreed that
the corporation culture is aligned to the strategy of the business yielding high performance among workers
There is a good relationship between leadership and workers. 7.1% are neutral, 29.4% agreed and only 37.6%
strongly agreed with the statement.

From this question, Employees are allowed to air out their views and allowed to produce innovations within the
organization. The finding confirmed that 22.4% of participants strongly disagreed and 32.9% disagreed, 926%
were neutral and had no preference. Many of the participants agreed with the statement. 16.5% agreed and
23.5% strongly agreed. The mean was 3.406 which indicates that Employees are allowed to air out their views
and allowed to produce innovations within the organization

4.5.4. The link between strategic leadership through learning and customer satisfaction
Past research implied that there is a positive relationship between strategic leadership learning the needs of the
customers and customer satisfaction. These were done in the banking sector and large manufacturing
organizations’ researcher sought to find if it is applicable in the fast food small and medium sector and the
results are shown below in table 4.9.

Table 4.8: The link between strategic leadership through learning and customer satisfaction

49
Customers are the kings in business and need special treatment for an organization to strive and perform well
customers need to be satisfied. The researcher sought to find out the link between strategic leadership learning
the needs of the customers and thus leading to customer satisfaction. From the results obtained 85.8% strongly
agreed and agreed that leadership is willing to learn the needs of the customers.
It shows that leadership is putting an extra effort to learn what customers want and offer that.47.1% strongly
agreed that customer grievances are promptly settled, and their needs put first thus making sure that customers
feel that they are valued and where the business is not performing well leaders are willing to change. The food
industry is an overly sensitive industry where grievances of the customers need to be taken seriously so that the
business will not lose customers.41.2% agreed and 32.9% strongly agreed that there is high customer loyalty
and retention within the organizations.

Which is a clear indication that customers are satisfied keep on coming back. The overall mean showed
4.002941 which is an indication that there is a high link between leaders learning needs and customer
satisfaction, when leaders are aware of what customers need, they offer the best.

The results on table 4.9 above demonstrate that 4.7% of participants strongly disagreed and 11.8% disagreed
that customer’s grievances are normally settled promptly, and their needs put first, Some of the participants
agreed with the above. 36.5% agreed and 47.1 strongly agreed. The overall mean was 4.002941 which state that
Customer’s grievances are normally settled promptly, and their needs put first .
50
From the 85 respondents, 8.2% of participants strongly disagreed and 10.6 disagreed that Customer satisfaction
is high (above the industry average) while 2.4% were neutral. 35.3% of the participants agreed and 43.5
Strongly agreed which led us to an overall mean of 4.002941 which confirmed that Customer satisfaction is
high (above the industry average) .

The finding on the last questions on table 4.9 indicates that 5.9% of participants strongly disagreed and 9.4%
disagreed, 10.6% were neutral and had no preference. And most of the participants agreed with 41.2% agreed
and 32.9% strongly agreed. The mean was 4.002941 which indicates that There is high customer loyalty and
customer relation.

4.5.5. The impact of leaderships ability to interpret the environment on growth in profits.

A study by Abash (2017) in Asia indicates that there is a positive impact between leaderships ability to interpret
the environment on growth in profits in the food industry. The researcher sought to find out if it is applicable in
developing countries like Zimbabwe and the results are shown below in table 4.10

Table 4.9: The impact of leaderships ability to interpret the environment on growth in profits.

51
The researcher sought to find out how leaderships ability to interpret the environment has an effect on growth in
profits. From the results shown above the researcher found out that 48.2% strongly agreed and indicated that
resources are being channelled to do research of the market trends so that leadership is always aware of what is
happening in the environment which minimises losses through offering what is in line with the trending seasons
in the market.90.5% strongly agreed and agreed that leadership can interpret the changes that are happening in
the environment a strong indication that the leaders are doing proper researches to know what is happening
around the market.

The fast food sector is characterised with many changes in the environmental setups of the restaurants which
requires leaders to be evolving and offering unique setups to keep up with trens.7.1% strongly disagreed that the
organization is always ahead of its competitors which shows that few organizations are not staying ahead but
majority are able to keep up with the market trends .The total overall mean was 3.9029 which is a close
response to totally agree that leadership ability to interpret the environment has a strong influence on growth in
profits

4.6 Inferential statistics and hypothesis testing

The researcher performed confirmatory factor analysis (CFA) to determine the impact of strategic leadership on
organizational performance. Confirmatory factor analysis is a statistical method that is used to verify the factor
52
structure of a set of observed variables. CFA was used to test the hypothesis stated in Chapter 1 of the study.
The objective was to confirm that a relationship between observed variables and their underlying latent
constructs existed. The constructs that were used were developed from relevant theory and research literature.
In each of the constructs, Principal Component Analysis (PCA) was conducted and the components with
Eigenvalues of greater than one were noted. To test the significance of the relationship between each of the
constructs and organizational performance. Bartlett's Test of Sphericity was employed. The probability (p-
value) tested the significance of the relationship between variables. Table 4.13 below show the outcomes of the
factor analysis.

Table 4.:10 Factor Analysis results

Source: Primary data (2022)

4.6.1. Hypothesis 1

53
H1- leadership’s ability to anticipate threats and opportunities has a significant and positive effect on meeting
organizational goals.
Table 4.11 shows KMO values and Bartlett’s test of sphericity. The results show that leadership has a value of
0.769 which is greater than 0.50 which shows that its significant, the Bartletts test of sphericity showed a value
of 0.045 which is below 0.05 indicating that its significant. Therefore, the hypothesis can be accepted that
leadership ability to anticipate threats and opportunities has a significant and positive effect on meeting
organizational goals.

4.6.2. Hypothesis 2
H2- leadership challenging the status-qou has a significant and positive effect on employee effectiveness
The results shown on table 4.11 indicate that KMO 0.567 which is greater than 0.50 and its significant the
Bartlett sphericity test 0.015 indicates that its below 0.05 which shows its significant. Therefore, it can be
concluded that challenging the status has a positive and significant effect on employee effectiveness.
4.6.3. Hypothesis 3
H3- Strategic aligning has a significant and positive effect on organizational culture
From the results shown on table 4.11 there is a positive relationship between strategic aligning and
organizational culture. The KMO showing a value slightly above 0.50 which shows that its significant but not to
a greater extend and also the Bartlett value shows 0.040 which is close to 0.05 and almost insignificant. The
hypothesis shows that there is a n effect between strategic aligning and organizational performance but not to a
very great extent.
4.6.4. Hypothesis 4
H4- strategic leadership through learning has a significant and positive effect on customer satisfaction

54
The KMO value from table 4.11 is 0.672 and is greater than 0.50 an indication that its significant and the
Bartletts shows a value of 0.02 which is close to 0.00 and its shows that its very much significant considering its
value from less than 0.005. The results indicate that there is a strong link between strategic leadership through
learning and positive customer satisfaction.

4.6.5. Hypothesis 5
H5- leadership’s ability to interpret the environment has a significant and positive impact on growth in profits

The hypothesis was testing to see if leadership’s ability to interpret the environment has a significant and
positive impact on profits. From the results obtained on table 4.11 it shows that the KMO value is 0.522 which
is greater than 0.50 an indication that the result is significant. The bartlett test showed a value of 0.01 which is
very close to 0.00 an indication that its very significant. In summation the results prove that leadership’s ability
to interpret the environment has a significant and positive impact on growth in profits.

4.7. Chapter summary

This chapter presented the data collected. Data analysis was done, and interpretations were made from the
analysis. The beginning of the chapter consisted of an introduction, which highlighted the intention to address
research objectives. This was followed by sections on the response rate and reliability tests. The responses from
the questionnaire were unpacked in the subsequent sections on the effect of leaderships ability to anticipate
threats and opportunities on achievement of organizational goals. The effect of challenging the status quo on
employee effectiveness, the effect of strategic aligning on organizational goals, the link between strategic
leadership through learning and customer satisfaction and the impact of leadership’s ability to interpret the
environment on growth in profits. The chapter closes with a summary. The final chapter of this research paper
will be on the conclusions and recommendations.

55
56
Chapter 5

Conclusions And Recommendations

5.1 Introduction
This final chapter of the research paper focuses on the conclusions and recommendations emerging from the
study. The research objectives are recapped, and the achievement of each objective is assessed. The contribution

57
of the research to the body of knowledge is also highlighted. The chapter concludes with suggestions of areas
of further research.

5.2 Statement of objectives

The extent to which the study objectives were achieved is discussed in this section

5.2.1 To ascertain the effect of leadership’s ability to anticipate threats and opportunities on achievement
of organizational goals.
The findings of the study show that this objective was achieved as the study managed to show that leadership
significantly influenced meeting organizational goals. According to a study in the fast-food retail sector in
Malaysia Adkur (2017) it shows that leaders play a significant role to ensure that organizational goals are met
by staying alert to ensure they know what is happening in the market.

5.2.2 To ascertain whether challenging the status-quo influences employee effectiveness

To a greater extend the findings of this study show that this objective was achieved. Challenging the status quo
significantly influences how workers perform and increase their effectiveness. A study by Kabetu (2018) and
Mabwashi (2016) concurs with this notion stating that strategic leaders challenging the status quo allows
innovativeness at work and they will not be stuck at one place thus increasing productivity.

5.2.3 To assess the effect of strategic aligning on organizational culture

The research showed that strategic aligning has a positive impact on organizational culture. When employees
are aligned to the vision of the business, they have a clear picture of where they are going and thus allowi ng
them to behave and perform in a good way creating a good culture withing the organization. Strategic direction
influences a good culture within the organization. A study by Hundermark (2017) supports that proper strategy
aligning gives an organization direction thus creating a positive culture. The research objective was achieved.

5.2.4 To examine the link between strategic leadership through learning and customer satisfaction
The study showed that there is a link between leadership learning the needs of the customers and customer
satisfaction. Learning about the needs of the customer plays an important role to ensure that they are satisfied. A
study by Mcawell and Pith (2017) and Davies(2015) shows that customer food preferences differ and there is
need to know what type of customers prefer .This can only be done through learning .

58
5.2.5 To determine the impact of leaderships ability to interpret the environment on growth in profits.
This research objective was met because the research showed that leaderships ability to interpret the
environment has a significant influence on growth in profits. This is in agreement with studies by
Muhamid(2017) ,Yuveer(2018) and Mumbash (2015). They all indicated that for a business interpreting the
environment allows business owner to know when to expand, open new branches and increasing productivity
depending with the season. A proper interpretation will go a long way to grow profits and business flourishing.

5.3 Conclusion
From the findings of the study, the following conclusions were made

5.3.1 The effect of leaderships ability to anticipate threats and opportunities on achievement of
organizational goals
The researcher concluded that leadership ability to anticipate threats and opportunities has a positive influence
on meeting organizational goals. The participants agreed that When leadership is always alert and anticipating
threats and opportunities it gives the organization leverage in the market and allows goals to be met. This is in
line with Adkur(2017) who concluded that when leaders are able to anticipate threats and opportunities they
have a high chance to meet organizational goals and improve performance.

5.3.2 The effect of challenging the status quo on employee effectiveness

Challenging the status quo has an effect on employee effectiveness. The respondents showed that challenging
the status quo improves the operations of the organization and motivates workers who will be willing to try new
things thus improving their productivity. The research concluded that challenging the status quo influences
workers to be effective because they will be exposed to different approaches to do work which minimises
boredom and creates creativity. A study by kabetu (2018) indicates that challenging the status quo motivates
workers because it allows for innovation’s thus boosting performance of the organization.

5.3.3 The effect of strategic aligning on organizational culture

The research states that strategic aligning does have an effect on organizational culture. Fostering a good culture
within the organization is only obtained through proper strategy aligning. The study concluded that having a
good strategy aligning creates a positive climate within the organization thus allowing people to work and

59
behave in a good way. In addition the study concluded that some organizations do not allow employees to air
out their views and come up with innovations which can be a limiting factor on achieving a good culture.

5.3.4 The link between strategic leadership through learning and customer satisfaction
The study concluded that there is a link between strategic leadership learning and customer satisfaction. There
is a positive relationship that exists strategic leaders fosters a learning culture in organizations, and this enables
them to constantly review and know what satisfies their customers and just offer the best. The more leaders are
willing to work on the needs of the customers it leads to satisfaction and customer retention which is crucial for
survival in the business market. This is supported by past research by Macwell and Pith (2018) which indicates
that strategic leaders continuously learn and thus enabling them to offer what customers want and leads to
customer satisfaction.

5.3.5 The impact of leadership’s ability to interpret the environment on growth in profits
Leadership ability to interpret the environment positively influences growth in profits. The participants
concluded that when leadership is able to interpret the environment it is most likely to be ahead of its
competitors thus gaining leverage in the market and leading to an increase in profits. The fast-food sector is
evolving with many new offerings coming into the market to it requires leaders who are able to interpret and
stay relevant. The research concluded that leaders need to continue emphasising research and development so
that they are always able to know what is happening in the environment.

5.4 Recommendations
From the results and conclusions of the study, the following recommendations were made

5.4.1 Leaderships ability to anticipate threats and opportunities

The researcher recommends that leaders need to sharpen their foresight skills and ensure that they are not
caught off-guard are living in turbulent world where they are many changes happening daily, and it takes
leaders who are intelligent and analytical to identify threats and opportunities. Frequent swot analysis should be
done withing organizations so that they remain relevant in the market and build a good customer base.

60
5.4.2 Challenging the status quo
The study revealed that challenging the status quo has a positive influence on the effectiveness of employees.
The researcher would recommend that various techniques should also be employed to keep workers motivated
and ensure that they are productive. There is need to ensure that their needs are well taken care in that way they
will not be rigid to try new things and change on a continuous base with regards to how they operate.

5.4.3 Strategic aligning

There is need for proper aligning of the strategy so that workers and the leadership will work towards the same
vision. Good organizational climates should be maintained, and more trainings are needed so that workers are
given an opportunity to know what is expected from them. Employees should be given a chance to seek clarity
where they do not understand so that people will be on the same page.

5.4.4 Strategic leadership through learning

The study indicates that strategic leadership through learning has an impact on customer satisfaction. The
researcher would recommend that more resources should be channelled in ensuring that customers need are
known and satisfied so that businesses continue to thrive and increase performance. Leadership is all about
learning and coming up with ways that could improve the performance of organizations.

5.4.5 Leadership’s ability to interpret the environment

Leadership is the backbone of the organization and how leaders behave has a great impact on the overall
performance of the organization. The researcher recommends that leaders should attend more seminars and
workshops related to the food industry to know what is happening in the environment. Leadership should create
more networks that will be an eye opener to know how other businesses are surviving and find ways to improve.

5.5 Suggestions for further research

The research focused on the impact of strategic leadership on organizational performance of small to medium
enterprises in Zimbabwe’s fast food retail sector. The results showed that strategic leadership positively
influences the performance of the enterprises. The researcher recommends a further study to show how other
leadership styles influences firms in this sector. Further studies should also investigate other sectors such as
financial services and mining and see if strategic leadership has an impact on their performance.

61
Appendix 1: QUESTIONNAIRE

Questionnaire for Business Owners and Managers in Zimbabwe’s SME fast Food Retail Sector
62
My name is C Manema /R134558J, a Master’s in Business Administration student at Midlands State University.
I am conducting research on the Impact of strategic leadership on organizational performance of SMEs in the
fast-food retail sector in Zimbabwe. Please note that this research is purely for academic purposes and
information that you will provide shall not be used for any other purpose without your consent and /or the
consent of the university concerned. The information gathered will be treated as anonymous, private, and highly
confidential. I appreciate your willingness to help in my research effort.

SECTION A
Demographic Information (Please Tick the most appropriate)

Respondent’s Position/Title……….…………………………………………………
Gender: Male Female
Age: Below 30 years 30-50 years Over 50 years
Academic level” level Graduate Post graduate other qualification
Number of employees in the organization: ………………………………………….
How long has the organization been in operation? ..............

SECTION B
Impact of strategic leadership on organizational performance of Small and Medium Enterprises in
Zimbabwe’s Fast Food Retail sector.

Scale
Strongly Disagree Neutral Agree Strongly agree
disagree
1 2 3 4 5

1.Leadership ability to anticipate threats and opportunities has a significant and positive effect on
meeting organizational goals?

63
 Code Items Strongly Disagree Neutral Agree Strongly
disagree Agree
LAATO1 Leadership has the
ability to anticipate
threats and
opportunities.
LAATO 2 The organization is
meeting its set objectives
and goals
LAATO 3 The organization is
always alert to changes
in the market.
LAATO4 The company’s
performance analysis
trends shows that it has a
competitive advantage in
the market.

2.Leadership challenging the status quo has a significant and positive effect on employee effectiveness?

Code Items Strongly Disagree Neutral Agree Strongly

disagree agree
CSQ1 Challenging the status has
improved the operations of
the organization
CSQ2 Workers are effective and
are producing good results.
CSQ3 There is a good relationship
between leadership and
workers

64
 CSQ4 Employees are willing to try
new things and they are not
reluctant to do things beyond
what they are used to.

3Strategic aligning has a significant and positive effect on organizational culture?

Code Item Strongly Disagree Neutral Agree Strongly

disagree agree
SA1 The organization has a
distinct culture that is
fostered among employees
SA2 The organizational culture
is aligned to the vision of
the business.

SA3 The corporation culture is

aligned to the strategy of
the business yielding high
performance among
workers
SA4 Employees are allowed to
air out their views and
allowed to come up with
innovations within the
organization

4.Strategic leadership through learning has a significant and positive effect on customer satisfaction?

65
 Code Items Strongly Disagree Neutral Agree Strongly
disagree agree
LCS1 leadership willing to
learn the needs of the
customers?
LCS2 customer grievances
are normally settled
promptly, and their
needs put first
LCS3 Customer satisfaction
is high (above the
industry average
LCS4 There is high customer
loyalty and customer
retention

5.Leadership’s ability to interpret the environment has a significant and positive impact on growth in
profits.

Code Items Strongly Disagree Neutral Agree Strongly

disagree agree
IEGP1 There exists a strong
emphasis on research and
development to interpret the
environment?
IEGP2 Leadership can interpret the
environment and the
changes happening around

66
 IEGP3 The corporation’s market
share (growth) is high and
there is an increase in
profits
IEGP4 The organization is always
ahead of its competitors and
offering what the market
needs.

Thank you for sparing your time.

67