Strategic Leadership and Performance of Companies Listed on the Nairobi Securities Exchange: The Moderating Role of the Macro Environment

Top executives bear the fundamental responsibility of strategic leadership, with organizational performance enhancement serving as their primary objective. Diverse perspectives exist on the relationship between strategic leadership and corporate performance. This study aims to advance knowledge based on the premise that strategic leadership affects firm performance through the moderating influence of the macro environment. This study was anchored to the Upper Echelons Theory. The research’s overall objective was to examine the influence of the macro environment and strategy implementation on the relationship between strategic leadership and organizational performance of firms listed on the Nairobi Securities Exchange. A positivist philosophical approach informed the study design by utilizing a cross-sectional survey methodology with structured questionnaires for primary data collection. As of December 2021, all 63 NSE-listed companies constituted the research population, with the data analysis incorporating both descriptive and inferential statistical methods. The study established that strategic leadership positively influences the performance of NSE-listed firms. Similarly, the macro-environment exhibited substantial moderating effects on this association. The study concludes that, in order to achieve and maintain superior organizational performance, NSE-firms must adopt strategic leadership while remaining responsive to the dynamics of the macro environment. This research provides partial validation of previous empirical investigations while advancing the theoretical, practical, and policy knowledge domains.