Strategic Leadership, Innovation and Service Quality of Accredited Universities in Kenya

Abstract

The Primary objective of the study was to establish the mediating influence of innovation on the relationship between strategic leadership and service quality of accredited universities in Kenya. The specific objectives were to: determine the effect of human capital development on service quality; establish the effect of maintaining core competencies on service quality; assess the effect of strategic direction on service quality; examine the effect of strategic leadership on service quality and determine the mediating effect of innovation on the relationship between strategic leadership and service quality. The study relied on theoretical and empirical literature on human capital development, maintaining of core competencies and developing strategic direction as the independent variables, innovation as the mediating variable and service quality as the dependent variable. The study was based on four theories: upper echelons theory, dynamic capabilities theory, trait leadership theory and resource based view. The study was guided by positivism research philosophy, cross sectional and explanatory research design. The population in the study comprised of all the 74 universities in Kenya which have been accredited by the Commission of University Education to operate in the country. The unit of inquiry was the deputy vice chancellors of the universities in charge of administrative and academic divisions and the finance officers/managers. A census technique was used involving all the elements of the target population, while purposive sampling was used to select the respondents in the study. A structured questionnaire was used to collect data from the respondents. Descriptive statistical analysis was used to profile the respondents. The hypothesized relationships were developed and tested based on the conceptual model of strategic leadership, innovation and quality service. The measurement model estimation was established through exploratory factor analysis and confirmatory factor analysis. The linear relationships between the independent variables and quality service were assessed using Pearson product-moment correlation coefficient r. The structural or inner model was accomplished by examining path coefficients or betas for hypothesis testing. The hypothesized relationships were tested using Structural Equation Modeling and Sobel test. The result of the hypothetical testing showed that human capital development has a positive and statistically significant relationship with service quality. Out of the five factors of human capital, four factors were found to contribute significantly to service quality, and one was not which is existence of human resource training and development planning program in the institution. Maintaining core competence was established to have a statistically significant relationship with service quality. A statistically significant relationship was established between strategic direction and service quality. Further findings revealed that a statistically significant relationship existed between strategic leadership and service quality. A test of the mediated relationship confirmed that innovation partially mediates the relationship between strategic leadership and service quality. The results present diverse implications for policy, practice and research. Human capital development was confirmed to have a positive effect on service quality. As a result of this perspective policy makers will use these findings to align and increase adoption of strategic leadership practices in order to inspire good managerial practices. It is recommended that CEOs of universities can use these findings to help in promoting training and development, hire and recruit qualified and suitable personnel and enhance the innovative aspects of human capital, as they play an important role in obtaining service quality outcomes. Future studies could use longitudinal survey which will serve as the foundation for more informed interpretations in future research studies.