Effect Of Emerging Leadership Styles of Branch Managers on 

Performance of Commercial Banks in Nairobi County 

 

 

 

 

 

 George Otiende 

 165706 

 

 Master of Business Administration  

 

 

 

 

 

2025 

 

 



 
 

Effect Of Emerging Leadership Styles of Branch Managers on 

Performance of Commercial Banks in Nairobi County 

 

 

 

 George Otiende 

 165706 

 

Submitted in partial fulfillment for the award of a Master of Business 

Administration at Strathmore University. 

 

Strathmore Business School 

Strathmore University 

Nairobi, Kenya 

 

 

April 2025 

 

This thesis is available for Library use on the understanding that it is copyright material and that no 

quotation from the thesis may be published without proper acknowledgement.



 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



ii 
 

DECLARATION 

I declare that this work has not been previously submitted and approved for the award of a degree 

by this or any other University. To the best of my knowledge and belief, the thesis contains no 

material previously published or written by another person except where due reference is made in 

the thesis itself.  

© No part of this thesis may be reproduced without the permission of the author and Strathmore 

University  

  

Approval  

 The thesis of George Otiende was approved by the following:   

Name of Supervisor:    Professor Joseph Onyango   

School/Institute/Faculty:  Strathmore Business School 

  

Dr. Ceaser Mwangi 

Executive Dean 

Strathmore University Business School. 

 

Prof. Bernard Shibwabo 

Director, Office of Graduate Studies 

 



iii 
 

 

ABSTRACT 

The global banking sector is experiencing rapid transformation, driven by technological 

innovation, evolving customer expectations, and increasing regulatory demands. In Kenya, 

these changes are particularly evident among Tier 1 commercial banks, which dominate the 

sector in assets, deposits, and profitability. Branch managers are central to this 

transformation, as their leadership styles critically influence banks’ ability to adapt, 

innovate, and achieve sustainable performance. This study investigates the effect of 

emerging leadership styles-digital, hybrid, agile, and ethical-on the performance of 

commercial banks in Nairobi County, Kenya. The research is motivated by the recognition 

that traditional leadership models may be inadequate for addressing the complex challenges 

of the modern banking industry, and that empirical evidence on the impact of new 

leadership paradigms in the Kenyan context remains limited. 

The study addresses the gap in empirical research regarding the influence of contemporary 

leadership styles on bank branch performance in emerging economies. Digital leadership, 

characterized by the strategic use of technology to enhance efficiency and customer 

experience; hybrid leadership, which balances traditional management with modern 

innovations; agile leadership, emphasizing adaptability and rapid response to change; and 

ethical leadership, focusing on integrity and social responsibility, are all gaining traction 

globally. However, their specific effects on operational efficiency, customer satisfaction, 

staff engagement, and financial outcomes within Kenyan commercial banks had not been 

systematically examined prior to this study. The central research question is: How do 

digital, hybrid, agile, and ethical leadership styles adopted by branch managers affect the 

performance of commercial banks in Nairobi County? 

A descriptive research design was adopted, targeting all 337 branches of the nine Tier 1 

commercial banks in Nairobi County. Using stratified random sampling, a representative 

sample of 77 branches was selected to ensure coverage across different banks and locations. 

Data were collected through structured questionnaires administered to branch managers, 

capturing both self-reported leadership styles and objective branch performance indicators. 

The questionnaires were developed based on established leadership and performance 

measurement frameworks, with reliability confirmed through pilot testing and Cronbach’s 



iv 
 

alpha analysis. Data analysis was conducted using SPSS, employing both descriptive 

statistics and inferential techniques, including correlation and multiple regression, to assess 

the relationships between leadership styles and branch performance. Diagnostic tests for 

normality and multicollinearity were also performed to validate the models. 

The findings reveal that digital leadership is a significant predictor of branch performance, 

with managers who champion digital tools, promote digital literacy, and foster innovation 

reporting higher operational efficiency, customer satisfaction, and revenue growth. Hybrid 

leadership also shows a strong positive association with performance, as managers who 

balance traditional customer service with digital solutions achieve superior staff morale, 

customer retention, and financial results. Agile leadership, while positively correlated with 

performance, has a more context-dependent impact, being less significant in highly 

regulated or rigid environments. Ethical leadership demonstrates a direct and significant 

effect on both financial and non-financial performance indicators, with branches led by 

ethical managers reporting greater employee engagement, customer trust, and reputational 

capital. 

The study offers actionable recommendations for bank executives and policymakers, 

advocating for the institutionalization of digital and hybrid leadership training, context-

specific application of agile practices, and reinforcement of ethical standards. It 

underscores the need for regulatory frameworks that support innovation while safeguarding 

ethical conduct and financial stability. In conclusion, this thesis contributes to the 

understanding of leadership in the Kenyan banking sector by empirically demonstrating the 

positive effects of emerging leadership styles on branch performance, and recommends 

further research on their long-term and cross-sectoral impacts. 

 

 

 

 

 



v 
 

Table of Contents 
DECLARATION ............................................................................................................... ii 

ABSTRACT ...................................................................................................................... iii 

LIST OF TABLES ............................................................................................................. x 

LIST OF FIGURES .......................................................................................................... xi 

ACKNOWLEDGMENTS ............................................................................................... xii 

DEDICATION ................................................................................................................ xiii 

CHAPTER ONE ................................................................................................................ 1 

INTRODUCTION ............................................................................................................. 1 

1.0 Introduction ................................................................................................................... 1 

1.1.1 Background of The Study ............................................................................... 1 

1.1.2 Commercial Banks in Kenya .......................................................................... 1 

1.1.3 Leadership and Organizational Performance ................................................. 3 

1.1.4 Emerging Leadership Styles ........................................................................... 3 

1.1.5 Global Perspective on Emerging Leadership Styles ...................................... 5 

1.1.6 Regional Perspective on Emerging Leadership Styles ................................... 9 

1.1.7 Local Perspective on Emerging Leadership Styles ...................................... 11 

1.1.8 Performance Measurement in Banks ............................................................ 13 

1.2 Statement of the Problem ............................................................................................ 14 

1.3 Research Objectives .................................................................................................... 16 

1.3.1 Broad Objective ............................................................................................ 16 

1.3.2 Specific Objectives ....................................................................................... 16 

1.4 Research Questions ..................................................................................................... 16 

1.5 Scope of the Study ....................................................................................................... 16 

1.6 Significance of the Study............................................................................................. 18 

1.6.1 Managers ...................................................................................................... 18 



vi 
 

1.6.2 Banking Institutions...................................................................................... 18 

1.6.3 Researchers ................................................................................................... 18 

1.6.4 Government Organizations ........................................................................... 18 

1.6.5 Policy Makers ............................................................................................... 19 

1.6.6 Academic Knowledge .................................................................................. 19 

1.7 Chapter Summary ........................................................................................................ 19 

CHAPTER TWO ............................................................................................................. 21 

LITERATURE REVIEW ............................................................................................... 21 

2.1 Introduction ................................................................................................................. 21 

2.2 Theoretical Review ...................................................................................................... 22 

2.2.1Transformational Leadership Theory ............................................................ 22 

2.2.2 Situational Leadership Theory ..................................................................... 24 

2.3 Linkage between Theories and Study Variables ......................................................... 26 

2.4 Leadership Styles of Branch Managers and Performance of Commercial Banks....... 28 

2.4.1 Digital Leadership Style ............................................................................... 28 

2.4.2 Hybrid Leadership Style ............................................................................... 30 

2.4.3 Agile Leadership Style ................................................................................. 31 

2.4.4 Ethical Leadership Style ............................................................................... 32 

2.4.5 Commercial Banks Performance .................................................................. 33 

2.5 Empirical Review ........................................................................................................ 34 

2.6 Critique of the Literature Review ................................................................................ 36 

2.6.1 Summary of Knowledge Gaps in the Literature ........................................... 37 

2.7 Research Gaps ............................................................................................................. 38 

2.8 Operationalization of the study variables .................................................................... 40 

2.8.1 Conceptual Framework ................................................................................ 41 

2.8.2 Independent Variables: Emerging Leadership Styles................................... 42 



vii 
 

2.8.3 Dependent Variable: Performance of Commercial Banks ........................... 43 

2.9 Chapter Summary ........................................................................................................ 44 

CHAPTER THREE......................................................................................................... 46 

RESEARCH METHODOLOGY ................................................................................... 46 

3.1 Introduction ................................................................................................................. 46 

3.2 Research Philosophy ................................................................................................... 46 

3.3 Research Design .......................................................................................................... 47 

3.4 Population of the Study ............................................................................................... 47 

3.5 Sampling Design ......................................................................................................... 49 

3.5.1 Data Collection Procedures .......................................................................... 49 

3.6 Research Quality ......................................................................................................... 51 

3.6.1 Validity ......................................................................................................... 51 

3.6.2 Reliability ..................................................................................................... 52 

3.6.3 Piloting ......................................................................................................... 52 

3.7 Data Analysis............................................................................................................... 53 

3.8 Ethics in Research ....................................................................................................... 54 

3.9 Summary...................................................................................................................... 55 

CHAPTER FOUR ........................................................................................................... 56 

PRESENTATION OF RESEARCH FINDINGS ......................................................... 56 

4.1 Introduction ................................................................................................................. 56 

4.2 Response Rate ............................................................................................................. 56 

4.3 Demographic Information ........................................................................................... 57 

4.3.1 Gender .......................................................................................................... 57 

4.3.2 Job Description ............................................................................................. 57 

4.3.3 Level of Education ....................................................................................... 58 

4.3.4 Work Experience .......................................................................................... 58 



viii 
 

4.4 Reliability and Validity of the Instruments ................................................................. 59 

4.5 Descriptive Statistics ................................................................................................... 60 

4.5.1 Digital Leadership Style ............................................................................... 60 

4.5.2 Hybrid Leadership Style ............................................................................... 62 

4.5.3 Agile Leadership Style ................................................................................. 63 

4.5.4 Ethical Leadership Style ............................................................................... 65 

4.5.5 Commercial bank performance .................................................................... 66 

4.6 Normality test .............................................................................................................. 68 

4.7 Correlation Analysis .................................................................................................... 69 

4.8 Multivariate Regression Analysis................................................................................ 73 

4.9 Chapter Summary ........................................................................................................ 75 

CHAPTER FIVE ............................................................................................................. 77 

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS............................ 77 

5.1 Introduction ................................................................................................................. 77 

5.2 Discussion of the Findings .......................................................................................... 77 

5.2.1 Demographic information ............................................................................ 78 

5.3 Discussion on Leadership Styles ................................................................................. 79 

5.3.1 Digital Leadership Style ............................................................................... 79 

5.3.2 Hybrid Leadership Style ............................................................................... 81 

5.3.3 Agile Leadership Style ................................................................................. 82 

5.3.4 Ethical Leadership Style ............................................................................... 83 

5.4 Conclusion on Commercial Bank Performance .......................................................... 84 

5.5 Overall Conclusion ...................................................................................................... 85 

5.6 Recommendations ....................................................................................................... 87 

5.7 Theoretical Contribution of the Study ......................................................................... 88 

5.8 Research Limitations ................................................................................................... 88 



ix 
 

5.9 Suggestion for Further Research ................................................................................. 89 

REFERENCES ................................................................................................................ 90 

Appendix I Questionnaire ............................................................................................. 101 

Appendix II Letter Of Introduction ............................................................................ 106 

Appendix III Ethical Approval .................................................................................... 107 

Appendix IV NACOSTI Approval .............................................................................. 108 

Appendix V List Of All Licensed Commercial Banks In Kenya .............................. 109 

 

  



x 
 

LIST OF TABLES 

Table 1 of 3.4.1 Tier 1 Banks in Kenya ............................................................................ 49 

Table 1 of 4.2 response rate ............................................................................................... 56 

Table 1 of 4.3 Gender ........................................................................................................ 57 

Table 2 of 4.3 Job description ........................................................................................... 58 

Table 3 of 4.3 level of education ....................................................................................... 58 

Table 4 of 4.3 Work experience ........................................................................................ 59 

Table 4.4 Reliability of instruments .................................................................................. 60 

Table 6 of 4.5 Digital leadership style............................................................................... 60 

Table 7 of 4.5 Hybrid leadership style .............................................................................. 63 

Table 8 of 4.5 Agile leadership style ................................................................................. 64 

Table 9 of 4.5 Ethical leadership style .............................................................................. 66 

Table 10 of 4.5 Commercial Bank performance ............................................................... 67 

Table 1 of 4.6.1 Normality Test ........................................................................................ 68 

Table 2 of 4.6.2 Kolmogorov-Smirnov and Shapiro-Wilk ............................................... 68 

Table 1 of 4.7 Correlation Coefficient .............................................................................. 70 

Table 1 of 4.7.1 Model summary for digital leadership style ........................................... 70 

Table 2 of 4.7.1 ANOVA-digital leadership style ............................................................. 71 

Table 1 of 4.7.2 Model Summary for hybrid leadership style........................................... 71 

Table 2 of 4.7.2 ANOVA Hybrid leadership style ............................................................ 72 

Table 1 of 4.7.3 Model Summary for Agile leadership style ............................................ 72 

Table 2 of 4.7.3 ANOVA Agile leadership style .............................................................. 72 

Table 1 of 4.7.4 Model Summary for Ethical leadership style .......................................... 73 

Table 2 of 4.7.4 ANOVA for Ethical leadership style ...................................................... 73 

Table 1 of 4.8.1: Overall Model Fitness ............................................................................ 74 

Table 2 of 4.8.2: Analysis of variance (ANOVA)............................................................. 74 

Table 3 of 4.8.3 Overall Regression Coefficients ............................................................. 75 

 

 

 

 



xi 
 

LIST OF FIGURES 

Figure 2.9 Conceptual Framework .................................................................................... 44 

Figure 1 of 4.6.3 Q-Q Plot of commercial bank performance........................................... 69 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



xii 
 

 

ACKNOWLEDGMENTS 

First and foremost, I extend my deepest gratitude to Professor Joseph Onyango, whose 

guidance, encouragement, and expertise have been instrumental throughout the course of 

this thesis. His insightful feedback, patience, and unwavering support helped shape the 

direction of my research and pushed me to strive for excellence. 

I would also like to sincerely thank my colleagues at work for their understanding, 

flexibility, and continuous support during this academic journey. Your willingness to 

accommodate my schedule, listen to my ideas, and serve as a sounding board while I 

navigated the process of refining my research topic made a significant difference. 

To the faculty members at Strathmore University, thank you for holding my hand 

throughout the past two years. Studying at Strathmore has been a joy—your 

professionalism, dedication, and commitment to excellence are beyond doubt, and I am 

truly grateful to have learned under your guidance. 

Lastly, to my friends, thank you for your patience and understanding as I stepped back to 

focus on this goal. Your support and encouragement, even from a distance, meant more than 

words can express. 

To everyone who walked this journey with me—thank you 

 

 

 

 

 

 



xiii 
 

DEDICATION 

 

This thesis is dedicated to my late father, Moses Otiende, whose unwavering belief in me 

especially when I doubted myself—laid the foundation for this journey. Though he is no 

longer here, his presence has remained my guiding star. May his soul rest in eternal peace. 

I also dedicate this work to my dear wife and children, who have patiently endured two 

years of my absence. Thank you for your unwavering support, understanding, and 

encouragement. Your love, faith in me, and quiet strength kept me going and reminded me 

to finish the race. This achievement is as much yours as it is mine. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



1 
 

 

 CHAPTER ONE 

INTRODUCTION 

 1.0 Introduction 

This chapter highlights the background of the study, statement of problem, objective of 

study, research questions, significance of study, limitation of study and scope of study 

relevant to the effect of leadership styles of branch managers on performance of commercial 

banks in Nairobi County. 

 1.1.1 Background of The Study 

The global banking industry is undergoing a paradigm shift characterized by digital 

innovation, customer-centric strategies, and regulatory adaptation. These changes are not 

only redefining traditional banking models but also setting the stage for a more agile and 

resilient financial ecosystem. (Hosseini et al., 2020). To navigate these challenges and 

remain competitive, commercial banks are increasingly adopting emerging leadership 

styles, including digital, hybrid, agile, and ethical leadership (Smith, 2021; Brown, 2021; 

Jones & Lee, 2021; Miller, 2021). This section provides a global, regional, and local 

perspective on these trends, highlighting their implications for organizational performance 

in the banking sector. 

1.1.2 Commercial Banks in Kenya 

The Central Bank of Kenya (CBK) serves as the principal regulatory authority for the 

Kenyan banking industry. One of main functions is to restore financial stability and 

integrity by offering a set of regulations that banks must abide by in order to in order to 

operate. Kenyan banking regulations are anchored on certain Acts, in summary of; the 

Central Bank of Kenya Act (2015), the Banking Act (2015), the Microfinance Act (2006), 

the National Payment System Act (2011), and the Kenya Deposit Insurance Act (2012). The 

primary objectives of these regulations are to ensure transparency, protect the interests of 

depositors, and maintain the overall integrity of the financial system. 



2 
 

Commercial banks in Kenya are classified into three tiers based on their net assets, 

customer deposits, and capital reserves. Tier 1 banks, the largest in the sector, control over 

75% of the market share, followed by Tier 2 banks, which hold about 17% of the market 

share, and Tier 3 banks, which control approximately 8%. This classification helps in 

assessing market concentration and competition within the sector. As of December 2024, 

there were 39 commercial banks operating in Kenya. The banking sector demonstrated 

resilience, with total assets growing by 16.7% and profitability slowed down with an 8.8% 

decrease in pre-tax profits in 2023.  

Kenya's commercial banking sector is a crucial pillar of the nation's economy, driving 

financial inclusion and supporting diverse economic activities (Central Bank of Kenya, 

2023). While the sector has experienced significant growth and innovation, particularly 

with the advent of mobile banking solutions like M-Pesa, it confronts persistent challenges 

that necessitate strategic and adaptive leadership (Jack & Suri, 2016; World Bank, 2023). 

The dominance of Tier 1 banks underscores the sector's concentration, yet these institutions 

must navigate an increasingly complex operational landscape (Statista, 2024). 

One of the foremost challenges is the management of non-performing loans (NPLs), which 

can erode profitability and threaten financial stability. Research by Beck et al. (2015) 

suggests that proactive credit risk management and diversified lending portfolios are 

essential for mitigating NPLs. In addition to financial risks, Kenyan banks face escalating 

cybersecurity threats, requiring robust investment in security infrastructure and employee 

training to protect sensitive customer data (Kshetri, 2016). The rise of fintech companies 

introduces another layer of competition, demanding that traditional banks embrace digital 

transformation to remain relevant and competitive (Frost & Sullivan, 2018). 

Regulatory compliance adds further complexity, with stringent requirements related to anti-

money laundering (AML) and know-your-customer (KYC) protocols. Effective leadership 

ensures adherence to these regulations, safeguarding the bank's reputation and avoiding 

punitive measures (Basel Committee on Banking Supervision, 2017). Given these 

challenges, Kenyan banks require leaders who can effectively leverage digital technologies, 

foster innovation, manage risk, and respond to changing mark. 

 



3 
 

1.1.3 Leadership and Organizational Performance 

Leadership is widely recognized as a critical determinant of organizational success. In the 

banking sector, effective leadership guides institutions through complex challenges and 

drives performance at all levels (Hosseini et al., 2020). Branch managers, in particular, are 

responsible for translating strategic objectives into operational outcomes, fostering 

customer engagement, and ensuring efficient service delivery (Omondi et al., 2023). 

Traditionally, research in Kenya has focused on transactional and transformational 

leadership styles, with evidence suggesting that these approaches significantly influence 

employee performance and organizational outcomes (Kabiru, 2020; Anyango & Ngatuni, 

2018). However, as the banking environment evolves, there is a growing need to explore 

new leadership paradigms that are better suited to contemporary challenges (Kiprotich et 

al., 2022). 

Emerging leadership styles, such as digital, hybrid, agile, and ethical leadership, offer 

promising approaches for navigating this complex landscape and driving sustainable 

growth in the Kenyan banking sector (Smith, 2021; Brown, 2021; Jones & Lee, 2021; 

Miller, 2021). Branch managers play a pivotal role in translating strategic goals into 

tangible results. They are at the forefront of implementing organizational changes, driving 

customer engagement, and ensuring operational efficiency at the local level (Hosseini et 

al., 2020). As such, their leadership styles are critical determinants of branch performance 

and overall bank success. The ability of branch managers to effectively adopt and 

implement digital, hybrid, agile, and ethical leadership approaches is essential for 

navigating the challenges and opportunities presented by the evolving banking landscape 

(Smith, 2021; Brown, 2021; Jones & Lee, 2021; Miller, 2021) 

1.1.4 Emerging Leadership Styles 

Emerging leadership styles-namely digital, hybrid, agile, and ethical leadership are 

increasingly relevant in today’s banking sector. Digital Leadership involves leveraging 

technology to improve banking operations and customer satisfaction (Li et al., 2024; Smith, 

2021). Core dimensions of digital leadership include digital strategic thinking, digital 

insight, digital change management, and digital talent development (Li et al., 2024). 

Effective digital leadership by branch managers is paramount for ensuring that the benefits 

of technological investments are fully realized. Research by Smith (2021) highlights that 



4 
 

digital leaders in banking must champion the adoption of digital tools and platforms, 

promote digital literacy among their staff, and create a culture of innovation that fosters the 

development of new digital solutions. Ultimately, their ability to lead the digital 

transformation at the branch level will determine the bank's ability to compete effectively 

and meet the growing needs of its customers (Hosseini et al., 2020). 

Hybrid leadership, which blends traditional management practices with modern digital 

advancements, has become increasingly relevant in the evolving landscape of commercial 

banking. This leadership approach enables managers to balance in-person and remote work, 

effectively adapting to diverse customer and employee needs (Kiprotich et al., 2022; 

Mugambi & Kirimi, 2022). Recent research highlights that hybrid leadership not only 

incorporates elements of transformational and transactional leadership, but also leverages 

situational adaptability to respond to rapid technological change and shifting market 

dynamics (Wiechmann et al., 2022; Khan et al., 2024). Globally, major banks are 

restructuring their operations to foster more dynamic and agile organizations. For example, 

HSBC’s recent strategic overhaul involved dividing its business between Eastern and 

Western markets, a move designed to better address regional customer needs and reduce 

operational costs amid ongoing geopolitical tensions (The Times, 2025). Similarly, studies 

in Europe and Asia have shown that hybrid leadership supports the integration of digital 

solutions with face-to-face services, enhancing customer experiences and employee 

engagement (Wiechmann et al., 2022; Khan et al., 2024). In the Kenyan context, Mugambi 

and Kirimi (2022) found that hybrid leadership among branch managers facilitated the 

seamless adoption of digital platforms while maintaining the personalized service valued 

by local customers. This dual focus positions banks to remain competitive, resilient, and 

responsive in a rapidly changing financial environment 

Agile Leadership emphasizes flexibility and responsiveness to change (Muriithi et al., 

2022). Bank branch managers employing this style encourage adaptive strategies and cross-

functional collaboration to swiftly address market shifts and customer needs. This is 

particularly relevant in regions like Asia, where wealth managers are focusing on rapidly 

growing markets such as Hong Kong and Singapore to remain competitive in the global 

financial landscape (Financial Times, 2025).  



5 
 

Ethical leadership has increasingly gained recognition as a crucial leadership style that 

emphasizes integrity, accountability, and moral conduct within organizations (Omondi et 

al., 2023). Unlike traditional leadership approaches that often prioritize performance 

outcomes, ethical leadership focuses on leaders’ commitment to ethical principles, 

transparency, and fairness in their decision-making processes and interactions with 

followers (Brown, Treviño, & Harrison, 2005). This leadership style has emerged in 

response to widespread organizational scandals and ethical breaches, which have 

underscored the need for leaders who can foster trust and ethical cultures (Ciulla, 2020). 

Ethical leaders serve as role models who influence followers to behave ethically, thereby 

promoting organizational justice and long-term sustainability (Northouse, 2021). As an 

evolving paradigm, ethical leadership not only enhances organizational reputation but also 

contributes to employee satisfaction and overall effectiveness, making it a vital area of 

study in contemporary leadership research (Resick, Hanges, Dickson, & Mitchelson, 2006). 

1.1.5 Global Perspective on Emerging Leadership Styles 

In Europe, emerging leadership styles-digital, hybrid, agile, and ethical-are reshaping the 

banking industry as managers adapt to technological advancements, evolving work 

environments, and growing ethical expectations (García-Sánchez et al., 2023; Müller & 

Kunisch, 2022). This trend is particularly evident in countries such as the Netherlands, the 

United Kingdom, Germany, and Switzerland, where banks are at the forefront of digital 

transformation and organizational innovation (Pillai et al., 2022). Dutch banks, for 

example, have been recognized as pioneers in digital banking, with ING Bank leading the 

way in adopting agile transformation models inspired by technology firms like Spotify 

(Nemashakwe, 2024; van der Meulen, 2021). ING reorganized its workforce into "squads" 

and "tribes" to enable faster decision-making and foster innovation, resulting in accelerated 

product development, enhanced digital banking services, and improved customer 

experience (Nemashakwe, 2024; van der Meulen, 2021). The Netherlands' robust fintech 

ecosystem further supports this shift, as digital banking increasingly replaces traditional 

branch-based services and demands new forms of leadership to sustain competitive 

advantage (Pillai et al., 2022; García-Sánchez et al., 2023). 

Furthermore, in the United Kingdom (UK), the exploration of leadership styles and their 

effects on commercial bank performance has taken center stage, considering the impact of 



6 
 

financial protocols and fears like Brexit (Jallow, Masazing, & Basit, 2017). To tackle these 

complex situations, institutions such as Barclays and HSBC have embraced 

transformational and adaptive leadership, focusing on long-term goals, ethical standards, 

and innovation. On the other hand, Malaysia's competitive banking industry has seen 

Maybank and CIMB Group favoring a more collaborative and transformational style, 

leveraging employee engagement and continuous learning to promote innovation and stay 

ahead (Saleh, Mehmood, Khan & Jan, 2022). Moreover, hybrid leadership has gained 

prominence as banks navigate post-pandemic work environments in the UK. Lloyds 

Banking Group, for example, has tied senior executives’ bonuses to office attendance, 

reinforcing the importance of in-person collaboration while maintaining remote work 

flexibility (Financial Times, 2025). This move is intended to balance operational efficiency 

with employee well-being, setting a precedent for integrating traditional and modern work 

styles in banking institutions across the UK. Germany’s banking sector has increasingly 

adopted agile leadership to manage digital transformation and complex IT projects. The 

need for banks to respond swiftly to technological and regulatory changes has driven 

institutions such as Deutsche Bank and Commerzbank to implement agile methodologies. 

Research indicates that agile leadership in German banks improves cross-functional 

collaboration, speeds up software development cycles, and enhances responsiveness to 

market changes (Klein et al., 2024). These efforts align with Germany’s broader emphasis 

on technological innovation in financial services. 

Ethical leadership plays a crucial role in Switzerland, a country known for its strong 

banking regulations and emphasis on financial integrity. Swiss banks, including UBS and 

Credit Suisse (before its integration into UBS), have faced intense scrutiny over ethical and 

compliance issues. Ethical leadership has become a priority as these institutions strive to 

rebuild trust and strengthen corporate governance. The implementation of robust ethical 

frameworks at the branch level is heavily reliant on the leadership style of branch managers. 

Miller (2021) argues that by promoting transparency, accountability, and responsible 

financial practices, branch managers can build trust with customers, employees, and 

regulators, enhancing the bank's reputation and long-term sustainability. Ethical leadership 

is not merely a matter of compliance but a strategic imperative for ensuring the long-term 

success of the bank (Popa, 2012). Regulatory frameworks such as FINMA’s banking 

guidelines emphasize transparency, customer protection, and responsible financial 

practices (Swiss Financial Market Supervisory Authority, 2024). This regulatory-driven 



7 
 

approach reflects Switzerland’s commitment to maintaining ethical banking standards. By 

incorporating digital, hybrid, agile, and ethical leadership styles, bank managers across 

Europe are navigating the evolving financial landscape. These leadership approaches 

ensure that banks remain competitive, resilient, and trustworthy in an era of digital 

disruption and regulatory change. 

Transformational leadership, which emphasizes inspiration, motivation, and vision, has 

been widely acknowledged for its impact on performance and success in commercial banks. 

A study by Bass and Avolio (2018) in the United States emphasizes that transformational 

leaders in banking environments create a motivating culture that fosters employee 

engagement and commitment, which are key drivers of overall performance. 

Transformational leadership has been linked to increased innovation within banks, as these 

leaders encourage employees to think creatively and adopt new approaches to problem-

solving, thus enhancing the bank's ability to adapt to market changes in the United States 

(Avolio et al., 2020). 

Focusing on Singapore, a prominent financial hub, these leadership approaches are 

exemplified by institutions such as DBS Bank. The bank's strategic investments in digital 

and AI capabilities have streamlined operations and enhanced customer experiences. 

Initiatives include extensive employee upskilling programs to ensure readiness for 

technological advancements (Reuters, 2025). The appointment of Tan Su Shan as the 

incoming CEO of DBS Bank in March 2025 underscores a commitment to hybrid 

leadership. Tan emphasizes a balanced approach, focusing on existing markets such as 

Singapore, Hong Kong, India, China, Taiwan, and Indonesia. She advocates for "bolt-on" 

acquisitions to bolster the bank's high-return operations in wealth and transaction banking, 

integrating traditional banking practices with innovative strategies (Reuters, 2025). DBS 

Bank's transformation into an agile organization is notable. The bank has reorganized teams 

into "squads" to expedite decision-making and innovation, drawing inspiration from tech 

companies like Spotify. This agile approach has reduced time-to-market for new products, 

improved customer satisfaction, and increased employee engagement (Asian Banking 

School, 2024). Ethical leadership is integral to DBS Bank's operations. The bank's focus on 

responsible banking practices and social responsibility initiatives reflects a commitment to 

ethical standards. This includes promoting financial inclusion and addressing societal needs 

within the communities it serves (Asian Banking School, 2024).  By embracing these 



8 
 

emerging leadership styles, bank managers in Singapore, particularly at DBS Bank, are 

effectively navigating the complexities of the modern financial environment, ensuring 

resilience and competitiveness in a rapidly evolving market. 

In the United States of America (USA), the banking sector is increasingly adopting 

emerging leadership styles—digital, hybrid, agile, and ethical—to navigate the evolving 

financial landscape. These approaches enable bank managers to effectively address 

technological advancements, changing work environments, and heightened ethical 

expectations.  Digital leadership involves leveraging technology to enhance banking 

operations and customer experiences and JPMorgan Chase exemplifies this approach by 

transforming into a product-centric agile organization. The bank has initiated projects 

aimed at integrating advanced technologies to streamline services and improve customer 

engagement. Chad Ballard, head of global banking platform tech at JPMorgan, emphasized 

the importance of building a culture invested in agile methodologies to foster innovation 

and adaptability (The Financial Brand, 2024).  

JPMorgan Chase's recent return-to-office (RTO) mandate highlights the challenges of 

implementing hybrid work models. CEO Jamie Dimon's firm stance on in-person 

collaboration has led to discontent among tech employees who value flexibility, with some 

considering leaving or advocating for unionization (Business Insider, 2025). This situation 

underscores the complexities bank managers face in balancing operational efficiency with 

employee preferences in hybrid work environments.  U.S. banks are increasingly adopting 

agile methodologies to drive digital transformation and innovation. For instance, JPMorgan 

Chase has been implementing agile practices to enhance its technology projects, aiming for 

incremental delivery and continuous improvement (The Financial Brand, 2024). This 

approach enabled bank managers to respond promptly to market changes and customer 

needs.  

In Canada, federally regulated financial institutions are now required to disclose the 

diversity of their boards and senior management under proposed rules aimed at increasing 

transparency and representation (Reuters, 2025). While this example pertains to Canada, it 

reflects a broader North American trend toward ethical leadership practices that prioritize 

diversity and inclusion  



9 
 

1.1.6 Regional Perspective on Emerging Leadership Styles 

In the African banking sector, emerging leadership styles—digital, hybrid, agile, and 

ethical—are increasingly vital as managers navigate technological advancements, evolving 

work environments, and heightened ethical expectations. Focusing on South Africa, these 

leadership approaches are exemplified by recent studies and practices within the country's 

banking industry. Digital leadership involves leveraging technology to enhance banking 

operations and customer experiences. In South Africa, banks have increasingly adopted 

digital platforms to offer services such as online banking, mobile applications, and digital 

payment systems. This shift not only improves operational efficiency but also meets the 

growing demand for digital financial services among customers. The adoption of digital 

technologies necessitates that bank managers possess e-leadership skills, which involve 

effectively using electronic communication methods to lead and manage teams (Van Wart 

et al., 2019).  

The COVID-19 pandemic fast-tracked the implementation of hybrid work models in South 

African banks, requiring leaders to adapt to managing teams both remotely and in-person. 

Yozi and Mbokota (2024) explored the competencies necessary for leading hybrid teams in 

the South African banking sector, emphasizing the need for adaptive leadership skills. 

These include effective communication, empathy, authenticity, humility, trust, and 

transparency to successfully navigate the complexities of hybrid work environments.   

In Kenya, the Commercial Bank of Africa implemented an agile work model to enhance 

organizational performance. Research by Mathenge (2019) demonstrated that this approach 

positively influenced team cohesion, individual performance, and strategy execution. 

Although this study pertains to Kenya, it provides valuable insights into the benefits of 

agile leadership that can be applied within the South African banking context.  

In South Africa, ethical leadership is crucial in maintaining trust and compliance within the 

highly regulated financial industry. Bank managers are expected to uphold ethical standards 

to foster customer trust and ensure long-term sustainability. While specific studies on 

ethical leadership in South African banks are limited, the broader emphasis on corporate 

governance and ethical practices within the country's financial sector underscores the 

importance of ethical leadership. 



10 
 

A study by Smit et al. (2021) in South Africa on transformational leadership styles and the 

impacting performance on banks indicated that when transformational leadership are put 

together with proper talent management techniques, there will be a significant improvement 

on talent practice management and overall organizational performance. The research has 

since proved that the influence of transformational leadership style on performance differs 

and maybe based on other factors, which may include organizational practices. Importantly, 

the results in the mentioned study also showed that transformational leadership style in 

isolation cannot demonstrate a meaningful work engagement. In a separate study inclined 

to examine the role of leadership styles on employee performance conducted in specific 

commercial banks in Botswana by Ushe and Gaone (2020), revealed that there exists a gap 

due to lack of research on the relationship between leadership style and organizational 

performance, this is directly attributed to the banking business industry. The evidence 

presented in this research conducted in Botswana motivates the intentions of this research 

study to bridge the knowledge gap.  

Ushe and Gaone (2020) while performing analysis and reviewing a number of studies that 

would relate to the impact of leadership styles on the organizational performance realized 

that that organizations should consider implementing a robust leadership style to address 

these issues surrounding effective leadership in organizations. Consequently, the 

implications of various leadership styles in selected banks created a conflict of management 

and job execution between bank managers and the Officer they led. A section of managers 

argue that the use of specific leadership styles may be a threat to their authority, while 

certain employees exhibited a lack of receptiveness to these styles due to an insufficient 

understanding of their impact on performance. This study enhances the existing knowledge 

regarding leadership styles and employee performance within the banking sector in 

Botswana; however, it does not specifically address the influence of branch managers and 

their performance, which this research aims to explore. 

Furthermore, leadership styles also influence the strategic direction of commercial banks, 

particularly in how they handle technological advancements. According to Mutsikiwa 

(2022) in Zimbabwe, banks with leaders who embrace a transformational style tend to lead 

the way in integrating digital banking solutions, improving customer experience, and 

achieving higher growth. 



11 
 

Recent research suggests that combining transformational and transactional leadership in 

the enhances employee productivity and organizational performance (Martínez-Moreno et 

al., 2023). The blending of visionary leadership with structured performance management 

allows for a balance of long-term strategic goals and immediate operational needs, fostering 

both innovation and accountability (Kouzes & Posner, 2017) in the United States. This 

hybrid approach has been shown to improve employee motivation and performance, 

leading to enhanced bank performance (Nyadzi et al., 2022) in Ghana. 

1.1.7 Local Perspective on Emerging Leadership Styles 

In Kenya, several laws and guidelines regulate the banking industry. They include the 

Companies, Banking, and Central Bank of Kenya Acts, and the prudential guidelines that 

banks should comply with. The banking business industry plays a crucial role in facilitating 

local and international trade and is a key driver of economic development. Banks play a 

fundamental role in the economy by providing credit to support households, businesses, 

and government. To ensure transformation and banking business performance in Kenya, 

the government has clearly outlined the Kenya’s Vision 2030 that will guide the country 

going forward to maximize the revenue and profits that would see a growth in the industry 

in the coming years (Tayari & Mutinda, 2019). In Kenya's banking sector, the adoption of 

emerging leadership styles—digital, hybrid, agile, and ethical—is becoming increasingly 

critical as managers strive to enhance organizational performance, adapt to technological 

advancements, and uphold ethical standards. 

Agile leadership, emphasizing adaptability and swift responsiveness to change, has been 

notably implemented by the Commercial Bank of Africa (CBA). Mathenge (2019) 

examined the effect of the agile work model on organizational performance at CBA, 

revealing that agile practices positively influenced team cohesion, individual performance, 

and strategy execution. These findings suggest that agile leadership can enhance employee 

productivity, job satisfaction, and commitment within Kenyan banks. 

Research by Mbata et al. (2023) found  a significant positive influence of  authentic 

leadership on ethical behavior in Kenyan commercial banks. The study recommends that 

bank leadership promote authentic leadership to improve ethical behavior among 

employees, thereby enhancing organizational performance and trustworthiness. 



12 
 

While specific scholarly studies on digital and hybrid leadership within Kenyan banks are 

limited, the increasing integration of technology in banking operations necessitates digital 

leadership to guide digital transformation initiatives effectively. Similarly, the global shift 

towards flexible work arrangements underscores the importance of hybrid leadership in 

managing both remote and in-person teams. Additional research is required to explore the 

implementation and effect of these leadership styles. 

Banks play a special role in financial system by ensuring a seamless flow of funds between 

the bank sand the funds consumers (Manasseh et al., 2021). In Kenya, there has been a 

debate and mixed reactions over financial performance of commercial banks which has 

been blamed on the leadership styles and competencies of the bank managers, as this is 

considered key indicator to in financial performance (Ongongo & Mang’ana, 2022). Amidst 

a complex market landscape marked by new entrants and technological innovations, there 

is a pressing need for banks to revise their leadership strategies (Ichsan et al., 2021). 

Moreover, the Central Bank of Kenya's latest regulations, such as increased capital 

requirements, obligate banks to revamp their leadership and corporate governance 

approaches for conformity and enhanced performance (Wanyoike, Mugambi, & Joshua, 

2022). 

There has been extensive research on the link between leadership style and financial 

performance of financial institutions, with a range of results (Maina and Waithaka, 2018; 

Kasuni, Mandere and Njeru, 2022; Walela and Okwemba, 2015). However, these studies 

focused on particular types of financial institutions or limited regions in Kenya, creating 

room for further investigation. Given the importance of innovation and employee 

engagement to financial success, this study will examine the leadership styles that are most 

effective in improving financial performance in commercial banks in Kenya, contributing 

to the existing body of research 

Transformational leadership is linked to increased job satisfaction and higher employee 

retention rates within commercial banks. Research by Kelloway et al. (2019) indicates that 

employees who work under transformational leaders in Canada tend to feel more 

empowered and connected with the objectives of their organization, resulting in improved 

job satisfaction and enhanced performance outcomes. In the realm of commercial banking, 



13 
 

this aspect is manifested in superior customer service, increased employee productivity, and 

improved financial performance, as noted by Mumengani et al. (2022) in Kenya. 

1.1.8 Performance Measurement in Banks 

To comprehensively assess the effect of emerging leadership styles on bank performance, 

this study adopts the balanced scorecard (BSC) framework as its dependent variable. The 

BSC provides a holistic view of organizational performance by considering four key 

dimensions: financial, customer, internal processes, and learning and growth (Kaplan & 

Norton, 1996). By linking leadership styles to these dimensions, we can gain insights into 

how different leadership approaches influence various aspects of bank performance 

(Alawamleh et al., 2022; Hasan et al., 2023). 

 

Digital Leadership and Internal Processes: Digital leaders prioritize the integration of 

technology into banking operations, streamlining processes and enhancing efficiency. This 

translates into improvements in the internal processes dimension of the BSC. Key 

performance indicators (KPIs) such as transaction processing time, cost per transaction, and 

the number of digital service offerings can be used to measure the effect of digital 

leadership on internal process efficiency (Agyemang & Ansong, 2023; Chatterjee et al., 

2022). 

Hybrid Leadership and Customer Satisfaction: Hybrid leaders aim to balance traditional 

banking practices with modern innovations, catering to diverse customer preferences and 

needs. This approach is closely linked to the customer dimension of the BSC. KPIs such as 

customer satisfaction, retention rates, and the number of cross-selling opportunities can be 

used to assess the effect of hybrid leadership on customer relationships (Khan et al., 2024; 

Al-Abrrow et al., 2022). 

Agile Leadership and Learning and Growth: Agile leaders foster an environment of 

experimentation, creativity, and continuous learning, promoting employee development 

and knowledge sharing. This aligns with the learning and growth dimension of the BSC. 

KPIs such as employee training hours, employee satisfaction scores, and the number of new 

product or service innovations can be used to measure the effect of agile leadership on 

organizational learning and growth (Alrowwad et al., 2023; Khosravi et al., 2022). 



14 
 

 

Ethical Leadership and Financial Performance: Ethical leaders emphasize integrity, 

transparency, and social responsibility, promoting ethical decision-making and building 

stakeholder trust. This approach has a direct impact on the financial dimension of the BSC. 

KPIs such as profitability can be used to quantify the effect of ethical leadership on financial 

performance (Bediako et al., 2023; Yıldız & Şimşek, 2022). 

 

By linking leadership styles to specific dimensions of the balanced scorecard, this study 

provides a nuanced understanding of how different leadership approaches contribute to 

overall bank performance. It moves beyond traditional financial metrics to consider the 

broader impact of leadership on customer relationships, internal processes, and 

organizational learning and growth (Hasan et al., 2023; Chatterjee et al., 2022).  

1.2 Statement of the Problem  

The Kenyan banking sector, particularly within Nairobi County, plays a pivotal role in the 

nation's economic development, accounting for roughly 40% of the country's GDP (Central 

Bank of Kenya, 2020). As the industry evolves amidst rapid advancements in technology 

and shifting customer expectations, old-style leadership models may no longer suffice to 

address emerging challenges (Muriithi et al., 2022; Mwaura & Ngugi, 2023). Existing 

studies have primarily concentrated on traditional leadership styles. For instance, research 

by Kabiru (2020) examined the influence of transactional, transformational, laissez-faire, 

and bureaucratic leadership styles on employee performance in selected commercial banks 

within Nairobi City County. The study concluded that these traditional leadership styles 

significantly impact employee performance, suggesting that effective leadership is 

paramount for organizational success. Similarly, Anyango and Ngatuni (2018) investigated 

the effects of different leadership styles on employee performance in a Kenyan commercial 

bank, finding that transformational leadership had a positive impact on employee 

performance, while transactional leadership had a negative effect. Recent reviews echo 

these findings, highlighting the continued reliance on conventional leadership approaches 

in Kenyan banks (Kiprotich et al., 2022). 

Consequently, there is an increasing emphasis on adopting contemporary leadership styles-

namely digital, hybrid, agile, and ethical leadership-to enhance organizational performance 

(Omondi et al., 2023; Mugambi & Kirimi, 2022). To succeed in this environment, 



15 
 

commercial banks require effective leadership at the branch level to drive performance and 

achieve strategic objectives (Hosseini et al., 2020; Muriithi et al., 2022). While the existing 

literature acknowledges the importance of leadership styles in shaping organizational 

results, there is a noteworthy gap in our understanding of how these emerging leadership 

styles-digital, hybrid, agile, and ethical-affect the performance of Kenyan commercial 

banks (Omondi et al., 2023; Kiprotich et al., 2022). 

Despite the increasing adoption of digital technologies in the Kenyan banking sector, there 

is limited empirical evidence on the effectiveness of digital leadership in driving 

operational efficacy, enhancing customer service, and creativity at the branch level 

(Mwaura & Ngugi, 2023; Mugambi & Kirimi, 2022). Questions remain regarding how 

bank branch managers can effectively leverage digital tools and platforms to streamline 

processes, improve customer service, and promote financial inclusion in the Kenyan 

context (Omondi et al., 2023). 

Furthermore, the rise of remote work and flexible work arrangements has created a need 

for hybrid leadership approaches that balance in-person collaboration with remote work 

autonomy. However, there is a lack of research on how bank branch managers can 

effectively implement hybrid leadership models that maintain team cohesion, ensure 

productivity, and deliver high-quality customer service (Kiprotich et al., 2022; Mugambi 

& Kirimi, 2022). Moreover, the increasing pace of change in the banking sector requires 

agile leadership approaches that promote adaptability, innovation, and customer-centricity. 

However, there is limited evidence on how bank branch managers can foster a culture of 

agility, empower employees to make decisions quickly, and respond effectively to market 

disruptions and regulatory changes (Muriithi et al., 2022). 

Finally, growing concerns about ethical conduct and corporate citizenship have highlighted 

the importance of ethical leadership in the banking sector. However, there is a need for 

more research on how bank branch managers can promote ethical decision-making, build 

stakeholder trust, and ensure regulatory compliance in the Kenyan context (Omondi et al., 

2023; Mugambi & Kirimi, 2022). Addressing these gaps is crucial for improving leadership 

practices and enhancing performance in Kenya's dynamic banking sector. This study aims 

to provide empirical evidence on the effect of digital, hybrid, agile, and ethical leadership 

styles on the performance of commercial banks in Kenya, thereby informing the 



16 
 

development of effective leadership strategies and policies that support the sustainable 

growth and success of the banking industry. 

1.3 Research Objectives 

1.3.1 Broad Objective 

The main objective of the study is to investigate the effect of emerging leadership styles of 

branch managers on performance of commercial banks in Nairobi County 

1.3.2 Specific Objectives 

i. To establish the effect of digital leadership style of branch managers on performance 

of commercial banks. 

ii. To determine the effect of hybrid leadership style of branch managers on 

performance of commercial banks. 

iii. To ascertain the effect of agile leadership style of branch managers on performance 

of commercial banks. 

iv. To establish the effect of ethical leadership style of branch managers on 

performance of commercial banks. 

1.4 Research Questions 

i. What is the effect of digital leadership style of branch managers on performance of 

commercial banks? 

ii. What is the effect of hybrid leadership style of branch managers on performance of 

commercial banks? 

iii. What is the effect of agile leadership style of branch managers on performance of 

commercial banks? 

iv. What is the effect of ethical leadership style of branch managers on performance of 

commercial banks? 

1.5 Scope of the Study 

This research endeavours to examine the effect of emerging leadership styles enacted by 

branch managers on the performance outcomes of commercial banks operating within 



17 
 

Kenya. The study's parameters are defined across several key dimensions to ensure a 

focused and manageable investigation.  

Geographically, the research was confined to Nairobi County, Kenya. This selection is 

strategic due to the high concentration of commercial bank branches within the county, 

representing a diverse mix of both local and international banking institutions. By 

concentrating on Nairobi County, the study can facilitate focused data collection and 

rigorous analysis, while still offering insights that are broadly relevant to the wider Kenyan 

banking sector.  

Sectorally, the study is specifically concerned with Tier 1 commercial banks in Kenya. 

These banks are the predominant players in the Kenyan banking industry, possessing a 

significant share of the sector's assets, deposits, and overall market influence (Central Bank 

of Kenya, 2023; Statista, 2024). Focusing on Tier 1 banks allows the research to glean 

valuable insights into the leadership practices and resulting performance within the most 

strategically important institutions in the sector. 

Thematically, the study will investigate the relationships between four distinct, emerging 

leadership styles—namely digital, hybrid, agile, and ethical leadership—and the 

performance of commercial bank branches. Digital leadership will be assessed by analysing 

the extent to which branch managers effectively leverage technology to improve 

operational efficiencies, elevate customer service experiences, and foster innovation within 

their branches. Hybrid leadership will be evaluated based on the ability of branch managers 

to strike a balance between traditional banking practices and modern digital solutions, 

creating a work environment that is both flexible and highly adaptable. Agile leadership 

will be gauged by measuring the degree to which branch managers promote collaboration, 

encourage employee empowerment, and enable rapid responses to the ever-changing 

dynamics of the market. Ethical leadership will be assessed through branch managers' 

demonstrated commitment to the principles of integrity, transparency, and social 

responsibility, as well as their adherence to regulatory standards and ethical banking 

practices. 



18 
 

1.6 Significance of the Study 

This research has significant implications for improving bank performance through better 

leadership. It highlights the importance of managerial practices and provides valuable 

guidance for the banking sector to strengthen its competitiveness and resilience in the 

Kenyan context. This study is likely to benefit students, bank managers, banking 

institutions, scholars and the government. 

1.6.1 Managers 

 The research highlights the effect of various branch manager leadership styles on important 

performance measures, including profitability, customer satisfaction, employee 

productivity, and operational efficiency. The study specifically concentrates on branch 

managers, recognizing the critical role they play in influencing both employees, customers 

and overall performance of the branch. 

1.6.2 Banking Institutions 

The banking sector in Kenya plays a vital role in the economy, serving as a financial 

intermediary and driving economic development. Understanding factors that enhance or 

hinder its performance is crucial. Given the competitive and dynamic nature of Kenya’s 

banking industry, effective leadership is critical to navigating challenges such as digital 

transformation, regulatory changes, and customer expectations. 

1.6.3 Researchers 

The research is contextually relevant, addressing a gap in studies focused on leadership 

within the Kenyan commercial banking sector. Leadership studies often generalize findings 

from global or Western perspectives, which may not fully apply in Kenya's socio-economic 

and cultural environment. Insights from this study can help other researchers build a 

foundation for the future studies in the same area as it deals with realities and follows 

procedural research development approach. 

1.6.4 Government Organizations 

Effective leadership can boost employee motivation, engagement, and retention, which are 

critical for sustaining high performance in the service-oriented organizational sector. By 



19 
 

identifying leadership styles that positively affect branch operations, the research can 

provide actionable recommendations to improve teamwork, reduce conflicts, and enhance 

service delivery by the government state agencies. 

1.6.5 Policy Makers 

Findings from the research can inform policy decisions within commercial banks, 

especially regarding recruitment, training, and performance appraisal systems for branch 

managers. Banks can use the insights to align leadership styles with organizational goals, 

ensuring consistency in performance across branches. 

1.6.6 Academic Knowledge 

The study will add to the body of knowledge on leadership theories in the banking sector, 

this will provide additional empirical review and information from the Kenyan banking 

business sector. This will shape the understanding on leadership styles and their relevance 

in markets trends, more profoundly in Africa. 

1.7 Chapter Summary 

Chapter 1 served as the foundational framework for this research, providing essential 

context and outlining the study’s scope and objectives. The chapter began by introducing 

the global evolution of management practices in the banking sector and highlighted the 

emergence of digital, hybrid, agile, and ethical leadership styles. It emphasized the 

importance of these leadership styles in navigating the challenges and opportunities 

presented by technological advancements, evolving customer expectations, and increasing 

regulatory pressures. 

The background of the study provided a global, regional, and local perspective on the 

banking sector, illustrating how different leadership approaches were being adopted in 

various regions to address unique challenges and enhance performance. It identified several 

key challenges facing the Kenyan banking sector, including non-performing loans, 

cybersecurity threats, competition from fintech companies, regulatory compliance, and 

evolving customer expectations. These challenges underscored the need for effective 

leadership at the branch level to drive performance and achieve strategic objectives. The 

chapter clearly stated the problem that, while the existing literature provided valuable 



20 
 

insights into leadership styles and their impact on organizational outcomes, there was a 

notable gap in understanding how emerging leadership styles affected the performance of 

Kenyan commercial banks. The specific issues related to each leadership style, such as the 

effectiveness of digital leadership in driving operational efficiency and enhancing customer 

experiences, were highlighted. 

To address these gaps, the study set out specific research objectives, which aimed to 

investigate the effect of digital, hybrid, agile, and ethical leadership styles on the 

performance of commercial banks in Kenya. The research sought to determine how these 

leadership styles affected key performance indicators, such as financial performance, 

customer satisfaction, internal processes, and learning and growth. 

The chapter defined the scope of the study, specifying the geographic location (Nairobi 

County), the sector (Tier 1 commercial banks), and the leadership styles to be investigated 

(digital, hybrid, agile, and ethical). 

 

 

 

 

 

 

 

 

 



21 
 

 CHAPTER TWO 

 LITERATURE REVIEW 

2.1 Introduction 

The literature review provides a foundation for understanding the intricate relationships 

between emerging leadership styles and the performance of commercial banks, particularly 

within the context of Kenya. Drawing upon global insights and specific examples from 

innovative institutions such as ING in the Netherlands and DBS Bank in Singapore, the 

review underscores the increasing importance of digital, hybrid, agile, and ethical 

leadership in navigating today's dynamic banking landscape. Key challenges facing the 

Kenyan banking sector—including non-performing loans (NPLs), cybersecurity threats, 

and competition from fintech companies—further emphasize the need for adaptive and 

strategic leadership approaches at the branch level. The literature reveals a crucial gap in 

understanding how these emerging leadership styles directly influence the performance 

metrics of Kenyan commercial banks, particularly concerning the alignment of these 

strategies with a broader understanding of organizational performance. 

To address this gap, the conceptual framework will serve as a roadmap for examining the 

hypothesized relationships between the identified variables. Grounded in Transformational 

and Situational Leadership Theories, the framework outlines the potential effects of digital 

leadership on operational efficiency, hybrid leadership on customer satisfaction and 

adaptability, agile leadership on innovation and responsiveness, and ethical leadership on 

stakeholder trust and regulatory compliance. The framework provides a lens through which 

to view relationships among independent and dependent variables. 

This study will bridge the gap between theory and practice by empirically testing these 

proposed relationships within the specific context of Kenyan commercial banks. This 

framework will assess interrelations using the balance scorecard lens.  

The section is organized into five parts: a review of existing theories, an examination of 

past studies, the presentation of a conceptual framework, a critique of previous literature, 

and a summary of key findings. 



22 
 

2.2 Theoretical Review 

This part of the study details the pertinent theories related to the research, which are 

explained below. As outlined by Labaree (2023), theories are designed to clarify, anticipate, 

and comprehend events, often pushing and expanding established knowledge within the 

constraints of critical assumptions. A theoretical framework serves as the backbone for 

research, providing an explanation for the study's relevant problem. Le Roux (2020) 

explains that the theoretical framework establishes the reasoning behind the study, enabling 

readers to logically understand the connections between variables and the proposed 

relationship between them. This study is anchored by two primary theories: 

Transformational Leadership Theory and Situational Leadership Theory. 

2.2.1Transformational Leadership Theory 

Transformational Leadership Theory, first articulated by Burns (1978) and later refined by 

Bass (1985), posits that effective leaders inspire and motivate followers to exceed their own 

self-interests for the sake of the organization. Transformational leaders achieve this by 

articulating a compelling vision, fostering intellectual stimulation, providing individualized 

consideration, and serving as role models (Bass & Riggio, 2006). In the context of banking, 

transformational leadership has been linked to higher employee engagement, innovation, 

and organizational adaptability-qualities that are increasingly vital as banks confront rapid 

technological change and shifting customer expectations (Alrowwad et al., 2023; Omondi 

et al., 2023). 

Recent studies affirm the relevance of transformational leadership in the digital era. For 

example, Choi et al. (2022) found that transformational leadership significantly enhances 

digital transformation readiness and organizational learning in financial institutions. 

Similarly, Alawamleh et al. (2022) reported that transformational leadership positively 

influences the adoption of innovative banking practices and improves branch performance 

through increased employee motivation and commitment. In Kenya, research by Kabiru 

(2020) and Anyango & Ngatuni (2018) demonstrated that transformational leadership 

correlates with improved employee performance and customer satisfaction in commercial 

banks. For bank branch managers, transformational leadership can significantly improve 

performance by creating a motivated and high-performing team. By acting as role models 

and communicating a compelling vision, managers can align employees with 



23 
 

organizational goals. Encouraging innovation (intellectual stimulation) and providing 

personalized support can further enhance team effectiveness, job satisfaction, and customer 

service. A study by Oroh and Ariyadi (2024) also found that transformational leadership 

positively impacts employee motivation and performance in the banking sector, 

highlighting its importance in improving both individual and organizational outcomes. 

Digital leadership within banking necessitates a visionary approach that aligns with 

transformational leadership principles. Bank branch managers adopting this style 

articulated a compelling vision for the institution’s digital future, guided employees through 

technological transitions, and encouraged the adoption of new technologies and processes. 

This approach is consistent with findings by Li et al. (2024), who emphasized that digital 

leaders in banking must inspire and motivate employees to embrace digital change, much 

like transformational leaders. Similarly, Choi et al. (2022) found that transformational 

leadership behaviors such as articulating a clear digital vision and fostering employee 

commitment-are critical for successful digital transformation in financial institutions. 

Smith (2021) further noted that branch managers who combine digital acumen with 

transformational leadership qualities are better positioned to drive innovation and ensure 

the successful implementation of digital initiatives. This approach fosters an environment 

that values experimentation and creativity, essential for successful digital transformation 

(Kochei & Awuor, 2024). By empowering staff to embrace digital tools and platforms, 

transformational leaders enhance customer experiences and operational efficiency.  

Agile leadership, characterized by adaptability and swift decision-making, has been closely 

associated with transformational leadership principles in recent literature (Alrowwad et al., 

2023; Khosravi et al., 2022). In the banking sector, where market dynamics and customer 

expectations are continually evolving, branch managers who employ transformational 

leadership principles are more likely to foster organizational agility. Such leaders encourage 

innovation, empower employees to respond rapidly to change, and create an environment 

that supports continuous improvement-key elements for maintaining competitiveness and 

resilience in a volatile industry (Muriithi et al., 2022; Choi et al., 2022). Empirical studies 

have shown that transformational leadership behaviors, such as inspiring a shared vision 

and supporting team autonomy, are instrumental in promoting agile practices and enhancing 

overall bank performance (Alrowwad et al., 2023; Khosravi et al., 2022). 



24 
 

Hybrid leadership, which integrates traditional banking practices with modern digital 

advancements, is significantly enhanced by transformational leadership principles. Branch 

managers who embody this approach effectively balance face-to-face customer interactions 

with the implementation of digital solutions, ensuring that both conventional and 

innovative services are seamlessly delivered (Wiechmann et al., 2022; Mugambi & Kirimi, 

2022). These leaders inspire employees to uphold the institution’s core values while 

simultaneously embracing change and fostering a culture of innovation, thereby facilitating 

the integration of digital technologies into everyday banking operations (Khan et al., 2024). 

This strategic balance not only enhances customer satisfaction but also positions the bank 

as both reliable and forward-thinking in a rapidly evolving financial landscape (Wiechmann 

et al., 2022; Khan et al., 2024). 

Ethical leadership is deeply rooted in transformational leadership's emphasis on moral 

responsibility and integrity. In the banking sector, where trust and transparency are 

paramount, branch managers who practice transformational leadership serve as ethical role 

models, shaping the ethical climate of their organizations (Miller, 2021; Yıldız & Şimşek, 

2022). They promote a culture of accountability and ethical behavior, ensuring that 

employees adhere to regulatory standards and prioritize customers' best interests. This 

approach not only mitigates risks associated with ethical misconduct but also enhances the 

institution's reputation and fosters long-term customer loyalty (Bibi, 2018).  

In summary, transformational leadership serves as a foundational approach for bank branch 

managers, enabling them to effectively lead in digital, agile, hybrid, and ethical contexts. 

By inspiring and motivating their teams, these leaders drive innovation, adaptability, and 

integrity, ensuring the bank's success in a dynamic and competitive environment. 

2.2.2 Situational Leadership Theory  

Situational Leadership Theory (SLT), developed by Hersey and Blanchard (1969), suggests 

that effective leaders adapt their leadership style based on the competence and commitment 

levels of their employees. This means there is no one "best" leadership style. This theory is 

particularly relevant to hybrid leadership. A hybrid leader must adapt their approach based 

on the unique requirements of their team, the task at hand, and the broader organizational 

context. This flexibility is crucial in banking environments, where managers must handle a 

diverse workforce, changing market conditions, and evolving customer expectations. 



25 
 

Bank branch managers operate in dynamic environments where they oversee financial 

operations, ensure regulatory compliance, and lead teams to achieve customer service 

excellence. The application of SLT allows these managers to shift between four leadership 

styles i.e. directing, coaching, supporting, and delegating depending on the needs of their 

employees and the demands of the banking sector (Thompson & Glasø, 2022). 

In the context of the Kenyan banking sector, situational leadership is particularly relevant 

given the diversity of branch environments, staff capabilities, and customer needs. The 

dynamic and sometimes volatile nature of the financial sector-marked by regulatory 

changes, technological disruptions, and evolving market conditions-demands that branch 

managers be adept at shifting their leadership style to fit the context (Muriithi et al., 2022; 

Mugambi & Kirimi, 2022). 

Recent research supports the effectiveness of situational leadership in banking. Kiprotich 

et al. (2022) found that branch managers who adapt their leadership style to the specific 

needs of their teams and operational challenges achieve better performance outcomes. 

Moreover, the adoption of hybrid leadership-blending traditional and modern approaches-

reflects the situational leadership model by allowing managers to balance remote and in-

person work, address diverse customer expectations, and respond to changing branch 

realities (Mugambi & Kirimi, 2022; Omondi et al., 2023). 

When employees reach a moderate to high level of competence but still need reassurance, 

managers shift to a supporting leadership style. At this stage, branch managers involve 

employees in decision-making and encourage collaboration. This is particularly relevant in 

cross-functional teamwork between tellers, loan officers, and financial advisors, where 

cooperation enhances the overall customer experience (Goleman, Boyatzis, & McKee, 

2013). A supportive leadership approach also fosters a positive workplace culture, which 

improves employee retention and performance. 

Finally, for highly experienced and self-motivated employees, a delegating leadership style 

is most effective. Seasoned professionals, such as senior loan officers or investment 

advisors, require minimal supervision and thrive when given autonomy to make financial 

decisions within policy guidelines (Yukl, 2020). Delegation allows employees and  

managers to focus strategic goals, such as market expansion and regulatory compliance 

initiatives. In modern banking, SLT enables branch managers to respond to shifting 



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employee needs, regulatory changes, and evolving customer expectations. By adopting a 

flexible leadership approach, managers enhance team productivity, employee satisfaction, 

and overall branch performance. This adaptability ensures that banks remain competitive 

in an increasingly digital and customer-centric financial landscape (Bass, 2019). 

2.3 Linkage between Theories and Study Variables 

This study is grounded in two primary leadership theories: Transformational Leadership 

Theory and Situational Leadership Theory. These theories provide a theoretical framework 

for understanding the relationships between the emerging leadership styles under 

investigation (digital, hybrid, agile, and ethical) and bank performance, as measured by 

financial, customer, internal process, and learning and growth outcomes. 

Transformational leadership, as proposed by Bass and Avolio (1994), emphasizes visionary 

leadership, motivation, and the development of employees to stive for better performance. 

It has four key components: idealized influence, inspirational motivation, intellectual 

stimulation, and individualized consideration (Northouse, 2022). Situational leadership, on 

the other hand, as developed by Hersey and Blanchard (1969), suggests that effective 

leadership depends on the readiness and maturity of followers, requiring leaders to adapt 

their styles to specific situations (Thompson & Glasø, 2018). Both theories are crucial in 

shaping emerging leadership styles—digital, hybrid, agile, and ethical leadership—which 

are increasingly relevant in modern banking environments. 

Digital leadership aligns closely with transformational leadership, as it requires bank 

branch managers to inspire teams through technological innovations, promote digital 

literacy, and drive change within organizations. Leaders must act as visionaries, guiding 

employees in adopting digital banking solutions and data-driven decision-making to 

enhance customer satisfaction and operational efficiency (Sousa & Rocha, 2019). However, 

digital leadership also requires situational adaptability, as leaders must assess the 

technological competency of employees and provide necessary training and support 

(Ghasabeh & Provitera, 2017). In commercial banks, digital leadership enhances 

performance by improving service delivery, reducing operational costs, and fostering 

innovation. 



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Hybrid leadership, which integrates multiple leadership approaches to manage both in-

office and remote employees, embodies both transformational and situational leadership 

elements. Transformational leaders in hybrid work environments motivate employees 

through shared vision and goal alignment, while situational leadership allows managers to 

tailor their approach based on employees’ adaptability to hybrid models (Dirani et al., 

2020). In commercial banks, hybrid leadership improves employee engagement, enhances 

collaboration, and maintains productivity despite geographical flexibility. It also ensures 

that branch operations run seamlessly while employees maintain a healthy work-life 

balance. 

Agile leadership, characterized by responsiveness, adaptability, and decentralized decision-

making, strongly correlates with both transformational and situational leadership theories. 

Transformational leaders encourage innovation and proactive problem-solving, while 

situational leadership enables bank managers to assess rapidly changing market conditions 

and adjust their strategies accordingly (Rigby, Sutherland, & Takeuchi, 2020). In the 

banking sector, agile leadership supports faster decision-making, enhances customer 

responsiveness, and facilitates the adoption of new financial technologies, thereby 

improving the overall performance of commercial banks. 

Ethical leadership, which focuses on integrity, fairness, and accountability, is closely linked 

to transformational leadership as it promotes trust and values-driven decision-making 

(Brown & Treviño, 2006). Transformational leaders serve as ethical role models, ensuring 

that corporate governance and ethical banking practices are upheld. Situational leadership 

also plays a role in ethical decision-making, as bank managers must evaluate unique ethical 

dilemmas and respond appropriately (Resick et al., 2011). In commercial banks, ethical 

leadership enhances employee morale, strengthens regulatory compliance, and builds 

customer trust, all of which contribute to improved financial performance and long-term 

sustainability. 

Overall, transformational leadership theory provides the visionary and motivational 

foundation necessary for bank branch managers to drive change, while situational 

leadership theory ensures adaptability to the unique demands of digital, hybrid, agile, and 

ethical leadership styles. These emerging leadership approaches significantly impact 

commercial banks by fostering innovation, improving operational efficiency, enhancing 



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customer service, and ensuring compliance with ethical and regulatory standards. 

Consequently, the integration of transformational and situational leadership principles 

enables bank branch managers to effectively navigate the evolving financial landscape and 

drive sustainable performance improvements. 

2.4 Leadership Styles of Branch Managers and Performance of Commercial Banks 

Performance in commercial banks is increasingly recognized as a multidimensional 

construct, encompassing not only financial results but also customer satisfaction, 

operational efficiency, and organizational learning (Kaplan & Norton, 1996; Hasan et al., 

2023). The leadership styles adopted by branch managers-particularly digital, hybrid, agile, 

and ethical leadership play a pivotal role in shaping these performance outcomes, as they 

influence how banks respond to technological change, regulatory demands, and evolving 

customer expectations (Omondi et al., 2023; Chatterjee et al., 2022). This section reviews 

the conceptualization and measurement of performance in commercial banks, emphasizing 

its centrality to understanding the effectiveness of emerging leadership styles at the branch 

level. 

2.4.1 Digital Leadership Style 

Digital leadership has become a critical factor in the performance of commercial banks, as 

it encompasses the strategic use of digital technologies to drive creativity, enhance 

customer satisfaction, and improve operational efficacy. The evolution of digital leadership 

style is propelled by the integration of digital tools, which have transformed 

communication, collaboration, and decision-making processes within organizations (Savall 

& Sunesson, 2024). Leaders are increasingly adopting agile, adaptable, and data-driven 

approaches, moving away from traditional micromanagement to empowering team 

members and fostering autonomy (Savall & Sunesson, 2024). Digital leadership often 

incorporates elements from transformational, empowering, and authentic leadership styles, 

emphasizing the importance of managing digital transformation processes and maintaining 

a competitive advantage (Li et al., 2024). As organizations adapt to digitalization, effective 

digital leadership is seen as crucial for sustaining innovation, enhancing employee 

performance, and achieving strategic success in the digital era (Khan et al., 2023; Savall & 

Sunesson, 2024; Li et al., 2024).This leadership style involves the implementation of new 

technologies and encouraging of a culture that embraces change and continuous learning. 



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Transformational leadership principles are often integral to digital leadership, as they 

emphasize vision, inspiration, and the empowerment of employees to navigate the 

complexities of digital transformation (Kamau, 2020). 

In the context of commercial banks, digital leadership has been linked to significant 

improvements in performance metrics. For instance, the Commonwealth Bank of Australia 

(CBA) has substantially increased its investment in technology, focusing on artificial 

intelligence and digital infrastructure to enhance customer experiences and maintain a 

competitive edge. In the last six months alone, CBA's technology investment reached 

nearly $1.1 billion, reflecting a strategic commitment to leveraging digital capabilities for 

long-term benefits (The Australian, 2025). 

Similarly, Bankwest has launched a campaign to double its customer base by emphasizing 

simplicity and promoting its new banking app. This initiative aims to attract customers 

seeking uncomplicated banking solutions, highlighting the role of digital leadership in 

driving customer acquisition and satisfaction (The Australian, 2025). However, the pursuit 

of digital transformation also presents challenges. ING Australia reported a strategic profit 

decline attributed to significant investments in its core banking platform and retail banking 

app. Despite a $122 million decrease in profit, the bank views these investments as essential 

for future scalable and sustainable growth, demonstrating the long-term perspective 

inherent in effective digital leadership (The Australian, 2025). In the Kenyan banking 

sector, the adoption of digital leadership practices has been associated with enhanced 

organizational performance. Kamau (2020) found a strong positive relationship between 

transformational leadership strategies, which are central to digital leadership, and the 

performance of commercial banks in Kenya. The study concluded that embracing 

transformational leadership approaches, such as idealized influence and intellectual 

stimulation, enables banks to encourage creativity and improve service delivery. 

Overall, digital leadership plays a pivotal role in shaping the performance of commercial 

banks by driving technological innovation, improving customer engagement, and 

enhancing operational efficiency. While the transition to digital platforms requires 

substantial investment and may impact short-term profitability, the long-term benefits 

position banks for sustained growth and competitiveness in an increasingly digital 

landscape. 



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2.4.2 Hybrid Leadership Style 

Hybrid leadership, which integrates various leadership styles to address diverse 

organizational needs, has become increasingly relevant in the dynamic environment of 

commercial banking (Wiechmann et al., 2022; Mugambi & Kirimi, 2022). This approach 

combines elements of transformational, transactional, and situational leadership, enabling 

leaders to adapt their strategies based on specific circumstances and challenges (Khan et 

al., 2024). By fostering flexibility, hybrid leadership allows bank managers to effectively 

navigate the complexities of the modern financial landscape, characterized by rapid 

technological advancements and shifting market conditions (Wiechmann et al., 2022). One 

significant advantage of hybrid leadership is enhanced adaptability. Recent research 

demonstrates that hybrid leadership enables managers to swiftly adjust their approaches in 

response to evolving challenges, thereby maintaining organizational resilience 

(Wiechmann et al., 2022; Njenga & Mugambi, 2023). This adaptability is crucial in the 

banking sector, where leaders must respond to technological disruptions, regulatory 

changes, and fluctuating customer expectations (Khan et al., 2024). 

Hybrid leadership also contributes to improved employee performance and engagement. 

Mishra (2023), in a study of Nepalese commercial banks, found that leadership styles 

encompassing both transformational and transactional elements positively influenced 

employee motivation and job satisfaction, leading to enhanced overall performance. This 

suggests that a hybrid approach, which balances inspirational vision with structured 

rewards and clear expectations, can effectively drive employee engagement and 

productivity in banking environments. Moreover, hybrid leadership plays a pivotal role in 

change management. Njenga and Mugambi (2023) highlight that adaptable leadership is 

instrumental in steering banks through organizational transitions, significantly impacting 

performance outcomes in Kenyan commercial banks. This underscores the importance of 

hybrid leadership in facilitating successful change initiatives and maintaining a competitive 

edge. However, implementing hybrid leadership also presents challenges. Integrating 

diverse leadership styles requires a high level of skill and self-awareness from managers, 

as well as a supportive organizational culture that values flexibility and continuous learning 

(Wiechmann et al., 2022). Without deliberate efforts to cultivate these conditions, the 

benefits of hybrid leadership may not be fully realized.  



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In summary, hybrid leadership, through its amalgamation of various leadership styles, 

offers a strategic advantage in enhancing the performance of commercial banks. By 

promoting adaptability, improving employee engagement, and effectively managing 

change, hybrid leadership equips banks to navigate the complexities of the modern financial 

environment. Nevertheless, its successful implementation depends on the deliberate 

development of relevant skills and the fostering of an organizational culture that supports 

flexibility and innovation (Khan et al., 2024; Wiechmann et al., 2022). 

2.4.3 Agile Leadership Style  

Agile leadership has emerged as a pivotal approach in the commercial banking sector, 

emphasizing adaptability, collaboration, and swift decision-making to navigate the 

complexities of a rapidly evolving financial landscape. This leadership style fosters an 

environment where innovation thrives, enabling banks to respond effectively to market 

dynamics and technological advancements. Research indicates that agile leadership 

significantly enhances organizational outcomes. A comprehensive meta-analysis by 

Kowalski and Kowalski (2024) revealed that agile leadership practices lead to improved 

innovation efficiency, heightened employee performance, and increased team effectiveness. 

These findings accentuate the critical role of agile leaders in creating a culture that supports 

continuous improvement and responsiveness to change. In the context of commercial 

banks, the adoption of agile leadership practices has been linked to enhanced employee 

performance. A study conducted in the Kingdom of Bahrain demonstrated that managers 

employing agile strategies positively influenced their employees' success, particularly 

during crises such as the COVID-19 pandemic. This research highlights the importance of 

managerial agility in maintaining operational continuity and