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Effect of Market Orientation on Service Delivery among County Referral Hospitals in NOREB

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In Kenya despite the devolved health services, there is a growing concern about the poor quality of health services rendered to the county population, even though the Ministry of Health (MOH) policy endeavors to advocate for improved services.
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  International Journal of Strategic Management and Procurement IJSMP) ISSN:   2664-049x   1 (3) 32-45 , October, 2019 www.oircjournals.org   Korir and Kemboi 2019) www.oircjournals.org  Effect of Leaders’ Process -Orientation on Firm Performance among Tier I Commercial Banks Branches in Eldoret Town in Uasin Gishu County   1  Beatrice Chebet Korir, 2  Dr. Ambrose Kemboi 1 MBA   Student Jomo Kenyatta University of  Agriculture and Technology    2 Lecturer, Jomo Kenyatta University of Agriculture and Technology    Type of the Paper: Research Paper.  Type of Review: Peer Reviewed. Indexed in:  worldwide web. Google Scholar Citation:  IJSMP  International Journal of Strategic Management and Procurement (IJSMP)  A Refereed International Journal of OIRC JOURNALS.   © OIRC JOURNALS. This work is licensed under a Creative Commons Attribution-Non Commercial 4.0 International License  subject to proper citation to the publication source of the work. Disclaimer: The scholarly papers as reviewed and published by the OIRC JOURNALS, are the views and opinions of their respective authors and are not the views or opinions of the OIRC JOURNALS. The OIRC JOURNALS disclaims of any harm or loss caused due to the published content to any party. How to Cite this Paper:   Korir B. C., and Kemboi A.  (2019). Effect of Leaders’ Process -Orientation on Firm Performance among Tier I Commercial Banks Branches in Eldoret Town in Uasin Gishu County.  International Journal of Strategic and Procurement (IJSMP), 1 (3) 32-45  International Journal of Strategic Management and Procurement IJSMP) ISSN:   2664-049x   1 (3) 32-45 , October, 2019 www.oircjournals.org   33 | Page  Korir and Kemboi 2019) www.oircjournals.org  Effect of Leaders’ Process -Orientation on Firm Performance among Tier I Commercial Banks Branches in Eldoret Town in Uasin Gishu County   1  Beatrice Chebet Korir, 2  Dr. Ambrose Kemboi 1 MBA   Student Jomo Kenyatta University of Agriculture and Technology    2 Lecturer, Jomo Kenyatta University of Agriculture and Technology    ABSTRACT  In the last one decade, competition in the banking industry in Kenya has increased significantly as a result of new entrants in the market and the increasing demands of the customers. However, this rapid growth in the banking industry has posed several challenges that have led to dismissal of several bank top managers and even closure of some banks. In order to survive banks must make changes to its structures, operations and in the  strategies used to meet customers’ needs and demands. The strength of commercial banks in Kenya significantly depends on the leadership style used such as  Leaders’ process -orientation. The specific objectives were to examine the effect of leaders’ process -orientation on firm performance among Tier I commercial banks branches in Eldoret town in Uasin Gishu County. The study was informed by cognitive load theory. The study adopted an explanatory research design. The target population comprised of 273 employees drawn from 6 Tier I commercial banks within Eldoret Town. The study sample size were 159 respondents. Stratified, purposive and sample random technique were used to select respondents for this study. The study used a Five- Point Likert scale questionnaires. Descriptive statistics (frequency, percentages, means, and standard deviations) and inferential statistics included correlation and multiple regressions. The study  findings were of great importance to the management of commercial banks understanding how  Leaders’ process -orientation affects firm performance. The study found out that process-orientation has a positive and significant influence on firm performance (β  3 =0.130, 96 p=0.035). The study concluded that the supervisor genuinely cares  for the welfare of other people, believes that caring about people brings out the best in them, enjoys empowering others and continuously appreciates, recognizes and encourages others. The study recommends that ethical issues be coined within the culture of the organizations. When employees work from a very solid ethical consideration, it goe  s a long way to enhance to a very significant extent the customer satisfaction and this enhances customers’ loyalty. The study further recommends that the supervisor should always inspires others to strive for excellence, tries to match people with their jobs in order to optimize productivity, know how to work with and around difficult  people to achieve results. Background of the Study Firm performance is important to investors, stakeholders and economy at large. For investors the return on their investments is highly valuable, and a well performing business can bring high and long-term returns for their investors (Mirza and Javed, 2013). Firm performance is also viewed in terms of "effectiveness" in achieving firm mission, purpose or goals. Organizations today are constantly in search for ways to achieve better performance (Gay, 2006). Therefore, improving business performance, organizations require an efficient leadership. According to Richard et al ., (2009) for firm performance to be achieved the actual output or results of an organization should be measured against its intended outputs. The servant leader approaches situations and organizations from the perspective of a servant first, looking to lend their presence to answer the needs of the organization and others. They seek to address RTICLE INFO Received 1 st  October 2019 Received in Revised Form 11 th  October 2019 Accepted 12 th  October 2019 Published online 13 th  October 2019 Key Words leaders, process-orientation, firm, commercial, bank, performance  International Journal of Strategic Management and Procurement IJSMP) ISSN:   2664-049x   1 (3) 32-45 , October, 2019 www.oircjournals.org   34 | Page  Korir and Kemboi 2019) www.oircjournals.org  wants and requirements as their priority, with leadership to be pursued secondarily. This contrasts with the leader-first perspective, wherein a person aims to gain control quickly often driven by the desire and prospects for material gain or influence. A servant leader may aim to share power with others and encourage the development and growth of others (Van Dierendonck, Stam, Boersma, De Windt, & Alkema, 2014). This trait can extend to listening to followers carefully to better understand their needs, but it also involves leaders holding themselves and others accountable for their words and actions. Among Islamic banks in Nigeria showed that when Imams and other leaders of the Masjid demonstrated good attitudes and fairness, the followers would emulate them and consequently increase the performance of the Masjid. Imams meet the perspectives of Shura (mutual consultation) to possess good consultation qualities regarding all important affairs of the Masjid. Imams possess leader’s traits such as being visionary, and communicate effectively with the Jama’ah (congregants) of the Masjid. In Nigeria Leaders’ process-orientation provides a unique avenue through which to assess leadership behaviors and the relationship to employee satisfaction and custo mers’ satisfaction measures Kenya currently has 43 licensed commercial banks and one mortgage finance company. Of these 44 institutions, 31 are locally owned and 13 are foreign owned (Central Bank of Kenya, 2016). Citibank, Habib Bank and Barclays Bank are among the foreign-owned financial institutions in Kenya. The government of Kenya has a substantial stake in three of Kenya's commercial banks (Ongeri et al, 2013). The remaining local commercial banks are largely family owned. Commercial banks in Kenya accept deposits from individuals and turn a profit by using the deposits to offer loans to businesses with a high interest rate (Amihud, 2013). Most banks nowadays are characterized by flat hierarchies which imply a large span of control Statement of the Problem Adequate performance of banks is of crucial importance to their customers, investors and other stakeholders. In the last one decade, competition in the banking industry in Kenya has increased significantly as a result of new entrants in the market and the increasing demands of the customers (Hancott, 2014). This rapid growth in the Banking industry has posed several challenges. Banking sector has in the recent past experienced financial performance challenges that led to dismissal of several bank top managers and even closure of some banks. Some banks have recorded poor financial performance. In the year 2015, several banks recorded a less than 20 per cent net profit decline as high operating expenses and one-time restructuring costs weighed on its profitability (CBK, 2016). In order to survive in the banking industry and to ensure a continued increase in its profitability, Banks in Kenya must make changes to its structures, operations and in the strategies used to meet customers’ needs and demands. T he strength of commercial banks in Kenya significantly depends on the leadership style used such as Leaders’ process-orientation. Existing studies suggest that the failure by organizations to understand and embrace Leaders’ process -orientation behaviors could account for the persistently low performance (Hagopian et al  2014; Lutwama et al.,  2012; Yang & Chang, 2017; Walumbwa, Hartnell, & Oke 2010). Although a growing body of literature about the implications of Leaders’ process -orientation behaviors on other factors such employee commitment, employee performance, employee satisfaction exists (Lim & Desa 2013; Kim 2015; Ling et. al.,  2016; Coetzer et. al.,  2017a; Sendjaya 2015), less attention has been paid to the effect of Leaders’ process -orientation and firm performance.   General Objective The objective of the study was to examine the effect of leaders’ process -orientation on firm performance among Tier I commercial banks branches in Eldoret town in Uasin Gishu County Research Hypothesis  H  01 :  Leaders’ process -orientation has no  significant effect on firm performance  among Tier I commercial banks branches in Eldoret town in Uasin Gishu County. Significance of the Study The beneficiaries of this research are commercial banks administration, managers, employees, academicians and future researchers. More particularly the research gave insight into procedures commercial banks employ in terms of Leaders’ process -orientation strategies. The study findings might be of great importance to the management of commercial banks in Kenya and the rest of the business firms in Kenya who will access this information, since the researcher feels that the study effectively analyzed a very critical area. The study also might be of value to future researchers and academicians as it will form a basis for empirical and conceptual research, which would be helpful in refining and validating findings especially when a  International Journal of Strategic Management and Procurement IJSMP) ISSN:   2664-049x   1 (3) 32-45 , October, 2019 www.oircjournals.org   35 | Page  Korir and Kemboi 2019) www.oircjournals.org  significant number of experiences is collected and studied Literature Review This chapter looks at the theoretical framework, the conceptual framework and empirical review Theoretical Framework The study was guided by Cognitive Load Theory by Sweller. Cognitive Load Theory This study adopted cognitive load theory to guide objective three on leaders’ process -orientation. The theory was developed by Sweller in (1988). The theory argues that achieving a complex cognitive skill, such as problem solving, is often constrained by a n employee’s limited processing capacity. Therefore, developing instruction that optimizes the allocation of cognitive resources is essential for performance to occur through the development of domain-specific schema. Cognitive load theory is based on the underlying assumptions that employee can only process a few pieces of information at one time (Moreno, 2006) and that long-term memory has an extensive cognitive capacity comprised of vast, hierarchically organized knowledge structures (Kalyuga, Ayres, Chandler & Sweller, 2003). Hence, working memory is viewed as a transitory cognitive structure where the conscious processing of information occurs. Information enters working memory through either the sensory memory or is retrieved from long-term memory (Sweller, 2004). Once in working memory, the information is structured and organized in a manner that allows the learner to store the information in long-term memory making the information available for retrieval from its long-term memory in the future. Thus, understanding the structural capacity limitations of working memory and the vast knowledge stores of long-term memory are essential to developing effective instruction. Instructional strategies that require employees to engage in learning activities that place excessive demands on working memory and are not effective in organizing information in manner that enhances schema development are likely to produce ineffective results (Kirschner, Sweller, & Clark, 2006). Cognitive demands placed on employees can be evaluated as excessive based on the level of element interactivity associated with a particular skill or task to be learned. Sweller and Chandler (1994) argue that in order to generate a problem solution, each step of the analysis is an element that must interact with other elements in order to arrive at a solution to the problem. Consequently, the analysis steps cannot be learned in isolation and must be learned simultaneously. Due to the high degree of element interactivity required in problem solving, the level of cognitive load will also be high resulting in some employees having difficulty in learning the material (Sweller & Chandler, 1994). Cognitive load theory (Sweller, 1988) distinguishes cognitive load according to three distinct categories: intrinsic, extraneous and germane (Sweller, van Merrienboer, Paas, 1998). Intrinsic load is the cognitive load due to the complex nature or the inherent difficulty of instructional material. Complex tasks such as problem solving contain a high number of interacting elements that impose a high demand on working memory to process the information. One non-instructional variable that influences intrinsic l oad is a learner’s prior knowledge. Despite the high number of interacting elements in complex tasks, employees with higher levels of prior knowledge can combine complex informational elements with existing schemata and treat the expanded schemata as one element in working memory (van Gog, Paas, & van Merrienboer, 2007). Therefore, the greater a learner’s prior knowledge the less intrinsic load the learner experiences during a complex task. Extraneous load or instructionally ineffective load (van Gog, Paas, & van Merrienboer, 2004) is caused by poorly designed instruction that fail to recognize the limits of working memory and the need to facilitate schema development and automation (Sweller, 2005). A conventional learning approach to problem solving is through means ends analysis, often employed by novice employees (Sweller, van Merrienboer, Paas, 1998). According to Sweller et al., (1998), means-ends analysis is a “slow and sub - optimal” approach to learning. Specifically, means-ends analysis places a high demand on working memory resources in order to solve the problem while simultaneously reducing the cognitive resources available for learning (i.e., schema development and automation). Worked examples have been shown to reduce extraneous load by focusing cognitive resources on studying the solutions and constructing and automating problem solving schema (van Gog, Paas & Van Merrienboer, 2007). Cognitive load theory is relevant to this study because its guided leaders’ process-orientation. This is because providing employees an orientation of how to solve a complex problem may increase cognitive load. By engaging in this type of focused learning activity, employees are better able to develop the appropriate problem-solving schemas necessary for transfer and firm performance (Sweller, 2005).  International Journal of Strategic Management and Procurement IJSMP) ISSN:   2664-049x   1 (3) 32-45 , October, 2019 www.oircjournals.org   36 | Page  Korir and Kemboi 2019) www.oircjournals.org  Criticism is that although cognitive load theory is at this time one of the dominant learning theories, it is still criticized for a number of reasons (Merrienboer & Sweller, 2005). Conceptual problems with cognitive load theory include; Post-hoc explanations - “ the fact that cognitive load is composed of three different elements that are “good” (germane), “bad” (extraneous), or just there (intrinsic) means that every outcome fits within the theory post-hoc. ” Jong (2010) als o claims that intrinsic cognitive load is by itself different from extraneous cognitive load (the first refers to cognitive processes and the second to learning material or representations) and therefore cannot be added to the overall cognitive load. Lack of precision in describing concepts such as cognitive load, mental load, and mental effort and Problems in definitions of each type of cognitive load Empirical Review Leader Process Orientation and Firm Performance Engelen, Gupta, Strenger and Brettel (2015) investigated entrepreneurial orientation, firm performance, and the moderating role of transformational leadership behaviors in six countries namely: Austria, Germany, Singapore, Switzerland, Thailand and United States. This article uses insights from the resource-based view and upper echelons perspective to introduce top management’s transformational leadership behaviors as moderators in the EO  –  performance relationship. The theoretically derived model is tested using survey data obtained from 790 small-and medium-sized firms in six countries. Findings indicate that, regardless of national setting, four transformational behaviors articulating a vision, providing an appropriate model, having high performance expectations, and showing supportive leader behavior positively affect the relationship between EO and firm performance. Further, the performance consequences of EO are greater when top management adheres to a configuration characterized by the highest possible levels of transformational behaviors. The study was carried out in developed countries hence there is still a in developing countries especially Kenya. Donate and Pablo (2015) examined the role of a specific type of organizational leadership knowledge-oriented leadership in knowledge management (KM) initiatives that seek to achieve innovation in Belgium. An analysis of the knowledge-based view of the firm gives rise to several hypotheses, with structural equation modeling (SEM) analysis through partial least squares (PLS) providing the methodology to test these hypotheses. This approach yields results for a sample of empirical data from technology industries. The results show that, although KM practices themselves are important for innovation purposes, the existence of this kind of leadership encourages the development and use of KM exploration (i.e., creation) and exploitation (i.e., storage, transfer, and application) practices. A major implication is that, as a result of this development and the use of KM practices, the firm is able to improve its performance in product innovation. There was not carried in banking sector hence a research gap for this study. Muchiri and McMurray (2015) examined the relationship between entrepreneurial orientation and performance Italy. The paper conducted a major review of published work on the entrepreneurial process with a focus on small businesses. Following the review, it became evident that even though the extant literature indicated that both entrepreneurial orientation and transformational leadership influenced firm performance, there was limited literature examining how these two important organizational variables related to each other, and how they interacted to influence firm performance within the context of small businesses. The study didn’t focus on  banking sector. Chen, Tang, Jin, Xie and Li (2014) investigate whether corporate entrepreneurship and technology orientation as intervening factors influence firm performance in China. To test the hypotheses, data were collected from 151 matched top management team (TMT) members and chief executive officers (CEOs) from Chinese manufacturing firms. Two separate questionnaires were used to collect the data. TMT members’ questionnaire included measures of CEO's transformational leadership, whereas CEOs’ questionnaire included questions about corporate entrepreneurship, technology orientation, and product innovation performance. Hierarchical linear regression was used to test the hypothesized effects. The results of the analysis provided the support for the fully mediating role of corporate entrepreneurship on the relationship between CEOs' transformational leadership and product innovation performance. In addition, technology orientation was found to significantly moderate the CEOs' transformational leadership  –  corporate entrepreneurship linkage. Furthermore, the mediated moderation effect of
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