Significance of Adaptive Challenge Dimension of Adaptive Leadership on Organizational Performance of Commercial Banks in Kenya
Keywords:
Adaptive challenge, Adaptive leadership, Organizational performance, Commercial Banks, KenyaAbstract
This study assessed the significance of adaptive challenge dimension of adaptive leadership on the performance of commercial banks in Kenya. The study was grounded on the Adaptive Leadership Theory and adopted the post-positivist research philosophy. A mixed-method approach was used to conduct the investigation, adopting the census method. Adaptive challenge was measured through three sub variables: problem diagnosis, creative thinking, and providing direction. The study targeted 394 top-level managers. Primary data was collected through self-administered online questionnaires. Qualitative data from open-ended questions was analyzed thematically, while quantitative data was examined using descriptive and inferential statistics in SPSS (version 29). Inferential analysis employed Pearson correlation, multiple linear regression, and stepwise regression. The correlation results revealed, r (314) =0.801, p<0.003. The results showed that adaptive challenge explained 26.9% (R²=0.269) of the variation in performance of commercial banks in Kenya. The regression coefficient for adaptive challenge returned coefficient values of β = 0.376, t (314) = 3.958, p<0.001 which was less than (p<0.05) set for the study. Thus, the null hypothesis was rejected implying that adaptive challenge has a positive significance on the performance of commercial banks in Kenya. The study recommends that commercial banks in Kenya equip managers to navigate uncertainties while sustaining performance and promote creative thinking to foster innovation and effective solutions. This study was limited to the significance of adaptive challenge on the performance of commercial banks in Kenya. The study, therefore, suggests that similar studies could be carried out in other financial institutions to allow generalization of findings.
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Copyright (c) 2026 Monica Anyango Oketch, Jeremiah Ntaloi Koshal, Edward Musebe Achieng
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