Transformational Leadership, Organizational Reward Systems and Performance of Telecommunication Firms in Kenya

Abstract

The purpose of this study was to investigate the moderating effect of organizational reward systems on the relationship between transformational leadership and firm performance.The empirical study employed a questionnaire approach. The Sample for the study was drawn from a population of 404 Telecommunication firms registered under the Communications Authority of Kenya (CAK) as at June 2014. Regression analysis was used to test the hypotheses in a sample of 202 firms. The findings suggest that Transformational leadership has a direct and significant effect on firm performance. In addition, organizational reward systems have no significant moderating effect on overall firm performance and financial firm performance. However, the moderating effect of reward systems on the relationship between transformational leadership and nonfinancial firm performance is significant.