Open Access

American Research Journal of Business and Management

ISSN (Online): 2379-1047

DOI: 10.46568/arjbm

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Research Article Vol. 9, Issue 1 2023 Open Access

Employee Commitment on the Relationship between Blue Ocean Leadership Style and Organization Performance

Dr. Jane Chepngeno Sang

Abstract

A major ingredient in most non-performing organizations is poor leadership. Blue ocean leadership (BOL) is a new style, which aims to achieve a leap in an organization’s leadership, quickly and at low cost, by engaging previously disengaged employees, leading to improved performance. However, a few studies have explored BOL in Kenya’s organizations. The aim of this study was to determine the relationship between BOL and organization performance (OP) in four selected companies on Nairobi Securities Exchange (NSE) and determine the moderating role of employee commitment (EC) on the relationship. Specifically, the study assessed the effect of BOS on organization performance and determined the moderating role of EC on the relationship. The study first assessed the companies’ current (‘as-is’) leadership canvases, developed alternative leadership states, and selected leadership profiles that could best unlock disengaged employees, which were validated against each company’s performance. The sample consisted of 144 employees from the four companies in Eldoret Town, selected from a target population of 224, by stratified random sampling. Data were collected using questionnaires and interview schedules. Findings showed a significant and positive effect of BOL (β = 0.298, p<0.0001) on OP. Companies which outperformed others had senior managers who delegated duties, removed bureaucratic bottlenecks and spent more time analyzing and espousing the company’s future. Middle managers in these companies coached, motivated and served their customers (junior employees), and not their bosses. Employee commitment was found to moderate the relationship between BOL and OP. The study concluded that BOL significantly improves employee commitment and engagement, leading to better OP. Thus, companies should implement BOL to improve their OP.