The Relationship between Transformational Leadership and Enterprise Risk Management Adoption by Commercial State Corporations in Kenya
The adoption of Enterprise Risk Management (ERM) by State Corporations in Kenya is a mandatory requirement and yet, the information on levels of adoption amongst Commercial State Corporations, most of which continue to experience poor performance due to weak governance is scanty. The objective of the study was to establish the relationship between transformational leadership and enterprise risk management adoption. This study adopted a positivist research philosophy and cross-sectional survey design approach. The target population comprised all the Commercial State Corporations in Kenya listed in the register of State Corporations Advisory Committee (SCAC) as at January 2021. The unit of analysis was the 52 Commercial State Corporations and unit of observation was top management of each entity. The researcher applied purposive sampling to select top management and surveyed the total population of top management that derived a sample size of 364 participants. The study used primary data which was collected through structured questionnaires. The descriptive and inferential statistics was employed in the analysis. The Statistical Package for Social Sciences (SPSS version 22) was used in regression modeling for prediction and causal inferences between study variables. The study findings indicated that Transformational Leadership has a significant relationship with ERM adoption. The study recommends that commercial state corporations embrace transformational leadership in order to enhance ERM adoption. Keywords: Transformational Leadership, Enterprise Risk Management & Commercial State Corporations