CEO Personality on Strategic Agility and Organisational Performance of Selected Airlines in Kenya

Abstract

The purpose of this paper was to investigate the moderating effect of CEO personality on the relationship between strategic insight, internal response orientation and external response orientation on organizational performance of selected Aviation airlines in Kenya. The study was guided by Balance score card and explanatory research dynamic capabilities theory design was used for this investigation. The study was done at eight (8) selected aviation airlines in Kenya. The study population included the top four (4) managers of each selected airlines (Executive CEO, financial manager, marketing manager and operations manager), 125 middle level managers, 160 middle level operational managers and 185 managers on ground handling ticketing/dispatching staff from the selected airline making a total target population of 502. The sample size for the study was 223 respondents. The study used simple random sampling to select respondents. This study used primary sources of data to produce quantitative information. The data were collected from the respondents’ using questionnaires. Quantitative data was analyzed by use of descriptive statistical techniques: mean, standard deviation, frequency and percentages and inferential statistics techniques: multiple regressions, and Pearson’s coefficient of correlation. The analyzed data was presented on tables. The study results showed that strategic insight had a positive and significant effect on organizational performance. Internal response orientation had a positive and significant effect on organizational performance. External response orientation had a positive and significant effect on organizational performance. CEO personality had a negative and significant moderating effect on the relationship between strategic insight and organizational performance. CEO personality has a positive and significant moderating effect on the relationship between internal response orientation and organizational performance. CEO personality has a negative and significant moderating effect on the relationship between external response orientation and organizational performance. The study reveals that CEO personality significantly affect the relationship between strategic insight, internal response orientation and organizational performance. A higher CEO personality negatively affects strategic insight, positively enhances internal response orientation, and negatively impacts external response orientation, indicating a negative effect on organizational performance. Since CEO personality have a negative moderating effect on the relationship between external response orientation and organizational performance. Organizations should consider this when evaluating the effectiveness of their external response strategies and selecting CEOs who can effectively navigate and adapt to external challenges.