Date of Conferral

2016

Degree

Ph.D.

School

Management

Advisor

Dr. Branford McAllister

Abstract

The literature indicates that leaders influence the establishment of organizational learning culture (OLC) by the application of transformational (TFO), transactional (TAC), and passive-avoidant (PAV) styles. Further, the literature links OLC to the financial performance of organizations by leadership involvement in establishing learning organizations. However, the manner in which the practice of OLC occurs and the relationship of OLC with TFO, TAC, and PAV is unclear, as is the link between OLC and financial performance (ROA); especially for growing economies outside North America. The purpose of this study was to address this gap in the literature through a quantitative study of leadership styles and their relationship to OLC based on complexity and contingency leadership theories, and organizational learning theory. The research questions focused on establishing the association between TFO, TAC, and PAV and OLC, and the link between OLC and ROA. Data from 40 commercial banks in Kenya were collected and multiple regression models developed. TFO and PAV Leadership styles were associated significantly with OLC; TAC did not have a significant relationship with OLC. OLC was linked significantly to ROA. The results of this study show that leaders of commercial banks build relationships with followers and support learning within their institutions; however, the results of this study show that these leaders engage in a limited form of organizational learning practice. This study has potential to contribute to positive social change by providing information about leadership and organizational learning strategies that advance transformational engagement with followers and organizational performance.