📄 Abstract
Chartered public universities in Kenya are increasingly facing a sustainability crisis characterized by declining government funding, escalating operational costs, shrinking student enrolment, mounting institutional debt, declining research commercialization, and growing pressure to improve institutional performance amidst intensified competition. These challenges have undermined the financial stability and competitiveness of many public universities, compelling university management to seek innovative strategic approaches capable of enhancing organizational performance while reducing dependence on traditional sources of revenue. Horizontal diversification has emerged as one such strategy through the introduction of new academic programmes, professional courses, executive education, short courses, and other market responsive services designed to attract diverse student populations and generate additional income. Despite the growing adoption of these initiatives, empirical evidence regarding the influence of horizontal diversification on the performance of chartered public universities in Kenya remains limited and inconclusive. This study examined the influence of horizontal diversification on the performance of chartered public universities in Kenya and investigated the moderating role of leadership style in this relationship. The study was anchored on the Ansoff Growth Matrix Theory and the Resource Based View Theory and adopted a positivist research philosophy and a descriptive correlational research design. The target population comprised managers drawn from the thirty six chartered public universities in Kenya. A sample of 205 respondents was selected using Yamane’s sampling formula, of whom 170 returned completed questionnaires, representing a response rate of 82.9 percent. Data were collected using a structured questionnaire and analyzed using descriptive statistics, binary logistic regression, and moderated binary logistic regression. The findings established that horizontal diversification exerted a positive and statistically significant influence on the performance of chartered public universities. The results further revealed that leadership style significantly strengthened the relationship between horizontal diversification and organizational performance. The study concludes that expanding market responsive academic and professional offerings enhances institutional competitiveness, financial sustainability, and long term organizational performance when supported by effective leadership. The findings extend strategic management literature by providing empirical evidence on horizontal diversification within higher education and offer practical guidance to university managers and policy makers seeking to strengthen institutional resilience and performance.
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📚 How to Cite:
Gladys Kituku Kalondu, Wilson Muema, Peter Kihara , INFLUENCE OF HORIZONTAL DIVERSIFICATION ON THE PERFORMANCE OF CHARTERED PUBLIC UNIVERSITIES IN KENYA: THE MODERATING ROLE OF LEADERSHIP STYLE , Volume 13 , Issue 8, August 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 49 - 59 , DOI: https://doi.org/10.36713/epra31167