THE MEDIATING EFFECT OF INSTITUTIONAL CULTURE ON THE RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL PERFORMANCE OF PRIVATE FAITH-BASED HIGHER LEARNING INSTITUTIONS IN KENYA

Author: Dr Ellen Waithira Karuga

ABSTRACT

This study examined the mediating effect of institutional culture on the relationship between transformational leadership and organizational performance of private faith-based higher learning institutions in Kenya. While the direct influence of transformational leadership on institutional performance is well documented, less attention has been paid to the mechanism through which this influence is transmitted, particularly the role of institutional culture as an intervening variable. Guided by the Baron and Kenny (1986) four-step approach to testing mediation, data were collected from 312 respondents (an 85.24% response rate) drawn from private faith-based higher learning institutions. Regression analysis was used to test the study hypothesis, which stated that institutional culture has no significant mediating effect on the relationship between transformational leadership and organizational performance. The findings showed that institutional culture had a strong, statistically significant, and positive relationship with organizational performance (R² = .681, F = 778.805, p < .001), and that introducing institutional culture into the regression model significantly improved the model’s explanatory power, from R² = .712 to R² = .792 (F change = 34.571, p < .001). The null hypothesis was therefore rejected, and the study concludes that institutional culture significantly mediates the relationship between transformational leadership and organizational performance in this sector. The study recommends that leaders of private faith-based higher learning institutions deliberately cultivate institutional cultures that reinforce values, mission, and purpose, as a pathway through which transformational leadership translates into improved organizational performance.

Keywords: Transformational leadership; institutional culture; organizational performance; mediation; faith-based higher education; Kenya

REFERENCES

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