Abstract:
This conceptual independent paper’s topic is “Integration of strategy and ethical leadership in the performance of public institutions in Kenya: A critical review of literature”. This topic has been chosen because of the new trends that have emerged in the 21st century. These changes have occurred through competitive advantage into sustainable competitive advantage and currently ethically and culturally sustainable competitive firms. The major issues of the review are; ethics, leadership, governance and strategic management with concrete reflection cutting across strategy formulation and implementation continuously and sustainably in an ethical manner. The study was limited by literature on this review’s topic. For this reason, the literature reviewed covers periods of year 2010 to 2017. Limited literature on the topic under review was the major challenge. In so far as studies reviewed have shown, the value system that each country holds depends on the type of government and its responsibility to set good example in society. The current conceptual independent paper is of a different view. That is, ethical performance is an individual and collective responsibility for both novice and incumbent employees. The main research gaps are; lack of harmony for the integration of strategy and ethical leadership in creating sustainable competitive advantage for the organization that is ethically and culturally moral. The creation of harmony between strategy and ethical leadership creates the research gap. Organizational culture aligned with strategy is the inner strength of the organization and significantly improves its competitiveness. The concept of alignment of strategy and organizational culture creates the research gap and lastly the concept of building affective organizational cultures and engaging in ethical practices as a means of fitting into the current challenging competitive landscape forms the basis of the research gap.