AN EMPIRICAL SURVEY ON THE EFFECT OF ADAPTIVE LEADERSHIP ON PERFORMANCE OF DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN NAIROBI COUNTY, KENYA
AN EMPIRICAL SURVEY ON THE EFFECT OF ADAPTIVE LEADERSHIP ON PERFORMANCE OF DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN NAIROBI COUNTY, KENYA
Joseph Opanda Namutala - Department of Organizational Leadership, Pan Africa Christian University, Kenya
Dr. Eunice Ngina Wandiga - Department of Business Administration & Management, Daystar University, Kenya
ABSTRACT
The Deposit Taking Microfinance Institutions (DTMFIs) endeavor to provide financial services to the informal sector and the poor, a category of the populace that is significant, yet left out. There is stiff competition within the Microfinance sector occasioned by government policy, competition from non-regulated lenders, technology and other commercial banks getting into this space. Due to these challenges, DTMFIs are plagued by low outreach which means that they are not able to fulfill their mandate of poverty reduction. Further, their lack of sufficient resources for onward lending implies that some struggle with financial sustainability and may venture into newer frontiers that do not resonate with their vision but promise financial sustainability. Performance of such institutions therefore becomes critical since it ensures the availability of financial services to a critical mass. This study investigated the effect of adaptive leadership on performance of Deposit Taking Microfinance Institutions (DTMFIs) in Nairobi County. In particular, the study set out to evaluate the effect of adaptive work and emotional intelligence on the performance of Deposit Taking Microfinance Institutions in Nairobi County. The main theory was adaptive leadership theory supported balanced scorecard (BSC) model, and emotional intelligence theory. The study was based on the postpositivist approach adopting descriptive and explanatory design with a target population of 298 senior, middle-level, and lower-level managers drawn from 12 Deposit Taking Microfinance Institutions in Nairobi County. Primary data was collected using a semi-structured questionnaire. Multiple linear regression analysis was used to establish the relationship between the variables. The results indicated that adaptive work and emotional intelligence had a statistically significant effect on performance. The study concluded that adaptive leadership had a statistically significant on the performance of DTMFIs in Nairobi County. The study therefore recommends that senior, middle-level, and lower-level managers should focus on various elements of adaptive work and emotional intelligence for improved performance of DTMFIs in Nairobi County.
