Collaborative Leadership and Performance: Does Environmental Dynamism Matter?

Abstract

The study delved into the relationship between environmental dynamism, collaborative leadership, and the performance of organizations and examined the moderating role of environmental dynamism on the link between collaborative leadership and performance. Based on a stratified random sample of insurance companies in Kenya and a Likert-style questionnaire survey involving 217 managers, two hypothesized models linking environmental dynamism, collaborative leadership, and performance were generated and tested quantitatively. The analysis involved descriptive statistics and ANOVA. Findings indicated that overall, environmental dynamism does not significantly moderate organizational performance. However, the results indicated that internal and external environmental dynamism individually influence the relationship between collaborative leadership and performance. These results highlighted the importance for organizational leaders to acknowledge the impact of internal and external environmental changes on their organization's performance. Additionally, they underscore the pivotal role of collaborative leadership in enhancing leaders' abilities to sustain performance. The paper contributes valuable insights by emphasizing that environmental dynamism and collaborative leadership profoundly shape organizational performance.