Strategic agility, leadership and organisational performance of airlines in Kenya

Abstract

The airline industry in globally operates in a highly dynamic environment characterized by rapid technological advancements, evolving customer preferences, regulatory changes, and economic uncertainties. To remain competitive, airlines must develop strategic agility, which enables them to rapidly sense and respond to market shifts, optimize resources, and enhance operational efficiency. Therefore, the general objective of this study was to examine moderating effect of leadership on the relationship between strategic agility and organisational performance of airlines in Kenya. Using Dynamic Capabilities Theory, Situational Leadership Theory, and Performance Theory, this study conceptualizes strategic agility as a multidimensional construct encompassing adaptive agility, portfolio agility, operational agility, and collaborative agility. Leadership is positioned as a moderator, influencing the extent to which agility drives organizational performance in terms of financial success, operational efficiency, customer satisfaction, and competitive advantage. This study employed explanatory research design. The target population for the study was 195 employees from airlines in Kenya. The study sample size was 131 respondents. The study employed simple random sampling technique to select respondents. The data was collected using structured questionnaires. The collected data was cleaned, coded, managed, and analysed with the aid of Statistical Package for the Social Sciences (SPSS) software version 23. Data analysis was done using descriptive and inferential statistics. Descriptively, data was analysed using frequency, percentages, means, and standard deviations. Inferentially, data were analysed using correlation and multiple regression models. The study findings revealed a positive linear effect of adaptive agility on the organizational performance of airlines (β 1 =.198, p=0.005). It was further established that portfolio agility has a positive and significant effect on the organizational performance of airlines (β 2 =.276, p=0.000). Operational agility was found to have a positive and significant effect on the organizational performance of airlines (β 3 =.193, p=022). Collaborative agility was found to have a positive and significant effect on the organizational performance of airlines (β 4 =.292, p=0.000). Leadership has a positive and significant moderating effect on the relationship between adaptive agility and the performance of airlines (β=.106; p<0.05). The leadership had a negative and significant moderating effect on the relationship between portfolio agility and the performance of airlines (β=-.233; p<0.05). Leadership had a positive and significant moderating effect on the relationship between operational agility and the performance of airlines (β=.064; p<0.05). Leadership had a positive and statistically significant moderating effect on the relationship between collaborative agility and the performance of airlines (β=.056; p<0.05). The study concluded that adaptive agility, portfolio agility, operational agility, collaborative agility, and leadership are crucial for the aviation industry's adaptability, strategic alignment, and customer feedback response. The study recommends that strategic agility significantly enhances airline performance, with leadership playing a critical role in shaping agility’s impact. The study contributes to strategic management literature and offers practical recommendations for airline executives seeking to build agile organizations in a volatile business landscape. Implementing these recommended theoretical approaches will lead to improved safety, efficiency, and competitiveness within the aviation sector, ensuring long-term success in a rapidly changing environment.