Abstract:
Organizations are constantly facing an increasingly dynamic environments
characterized by considerable and often unpredictable economic, technological and
political change. The main objective of this study is to assess the effect of leadership
on the relationship between organizational culture and performance. The specific
objective are; to determine the effect of involvement, consistency, adaptability and
mission on organizational performance of micro finance institutions in Kenya. The
study adopted descriptive research design. The target population consist of 43 micro
finance institutions in Nairobi town with 236 cadre of employees in total. The study
will use random sampling technique. The sample size consisted of 108 employees. The
type of data used was primary collected using self-administered questionnaires. Data
was analyzed using both descriptive statistics and inferential statistics. The research
findings indicated that organizational culture significantly relates to organizational
performance. The study established that transformational leadership significantly
affects the relationship between organizational culture and firm performance of the
micro finance institutions in Nairobi. The study informs management on how culture
influences organizational performance by providing empirically tested evidence and the
role leadership play. The study recommends that organizations should instill a culture
in its employees as this enhances the performance. The findings provided some
guidance for future direction to all of stakeholders for their business sustainability in
the competitive business environment. It is also recommended that transformational
leadership should be practiced in the firms as it was found to affect the relationship
between organizational culture and performance.
