Effect of strategic leadership and strategy implementation on the growth of the real estate industry in Kisumu county

Abstract

Strategic leadership has been recognized as a major driver of effective and efficient strategy implementation for a long period of time. Strategic leadership can be defined as the ability to influence a group or members of a team towards goals achievement hence successful strategy implementation will highly depend upon the leadership skills of organizing, culture building and working through others, establishing strategic controls, motivating, creating strong fits between strategy and how the organization performs to eventually achieve its goals. Likewise, the real estate industry helps in creating employment, lessening poverty, and providing shelter to families and promoting distribution of income in an economy. This industry, like any other industry is constantly evolving and the drivers for this sector range from the profitability to the changing face of building space complimented by the uncertainties encircling the sector. Despite this, Kenya’s real estate sector continues to lag in fulfilling its fundamental roles due to various factors affecting the sector including a number of challenges facing the industry, lack of clear strategy implementation and right leadership skills to help in growth of the industry among others. The purpose of the study was to establish the effect strategy implementation and strategic leadership on the growth of real estate industry in Kisumu County. The study was based on the following objectives: to establish the effect of strategy implementation on the growth of real estate industry, to establish the effect of strategic leadership on the growth of real estate industry and to establish the effect of strategic implementation and strategic leadership and the growth of real estate industry. Descriptive survey design was used to obtain a complete and an accurate description of statistics. The target population was 50 respondents out of which 48 were drawn. The data collection instruments were questionnaire. The study found out that strategic leadership significantly affected the growth in the real estate industry with a significance level of 0.007. The study also found out that strategy implementation had a 0.651 level of significance hence insignificant. The also study found out by use of correlation between strategy implementation ,strategic leadership and growth that there was a negative correlation between strategy implementation and growth as well as a positive correlation between strategic leadership and growth i.e p is 0.420, r is 0.119 and p is 0.005 r is 0.397 respectively. The study recommends a combination of strategic leadership and strategy implementation where there is availability of resources and professionals to handle the real estate industry so as to experience growth. The implication of this study would be further similar studies should be done in other counties to compare and contrast the findings of this study.This will assist the regulators and policy makers in this industry to make better informed decisions on as far as strategic leadership and strategy implementation is concerned