The Role of Employee Commitment in the Relationship between Transformational Leadership and Performance of Deposit-Taking SACCOs in Nairobi County, Kenya

Abstract

The general objective of this study was to establish the role of employee commitment in the relationship between transformational leadership and performance of Deposit taking SACCOs in Nairobi City County, Kenya. The theories chosen to anchor the variables include: 
 
 Transformational leadership theory, 
 Self-determination theory, 
 Organizational culture theory and 
 Contingency theory
 
 The study adopted a census survey design. The data used for the study was primary data. Regression models were used to test the significance of the study variables. The study found that employee commitment plays a significant mediating role in the relationship between transformational leadership and organizational performance. The findings have a number of implications on policy, human resource management, methodology and practice, among others. From human resources viewpoint, SACCOs can become more competitive and thus enhance sustainability if they manage employees to perform their duties through proper leadership and required employee commitment strategies. Further, this study has a significant role for policymakers as the insights learnt will help them develop HRM frameworks and policies that will encourage greater comparability of SACCOs and knowledge sharing amongst different stakeholders to develop capacity and capabilities.