ASSESSING THE IMPACT OF LEADERSHIP TRAITS ON STRATEGIC FINANCIAL MANAGEMENT PRACTICES IN THE GHANAIAN CONSTRUCTION INDUSTRY

Abstract
Leadership traits can significantly impact the performance of construction firms; therefore, effective leadership is essential for improved performance. This study investigates the influence of leadership traits on the adoption of strategic financial management practices within the Ghanaian construction industry. A mixed-method approach was adopted, incorporating both quantitative and qualitative research. The sample consisted of 149 participants, selected using a combination of stratified, random, and purposive sampling methods. Spearman's rho Correlation was employed to establish the relationship between leadership traits and the implementation of strategic financial management practices. The findings revealed no statistically significant relationship between strategic financial management practices and the leadership traits, except the relationship between transformational leadership and strategic financial management practices. Specifically, a connection was identified between transformational leadership traits, such as identifying the need for change and fostering a supportive and participative leadership style, and strategic financial management practices, particularly regarding contract conditions of payment during project execution. The study recommends that leaders in the construction industry take proactive steps to ensure high performance standards, minimise conflicts at project sites, recognise the need for change, and promote compliance. It is crucial for leaders to reward and discipline personnel for violations of ethical values. Additionally, leaders in the construction sector should familiarise themselves with the project life cycle and cash cycle for ongoing projects to provide necessary guidance to site supervisors and finance officers for effective financial management. While autocratic leadership should generally be avoided in the construction industry, there are instances when it becomes necessary for leaders to make decisive autocratic decisions to ensure dormant projects are completed on time. Leadership must also demonstrate high ethical standards while pursuing organisational goals, be effective in strategy generation and execution at project sites, and actively support and motivate employees.
Leadership traits can significantly impact the performance of construction firms; therefore, effective leadership is essential for improved performance. This study investigates the influence of leadership traits on the adoption of strategic financial management practices within the Ghanaian construction industry. A mixed-method approach was adopted, incorporating both quantitative and qualitative research. The sample consisted of 149 participants, selected using a combination of stratified, random, and purposive sampling methods. Spearman's rho Correlation was employed to establish the relationship between leadership traits and the implementation of strategic financial management practices. The findings revealed no statistically significant relationship between strategic financial management practices and the leadership traits, except the relationship between transformational leadership and strategic financial management practices. Specifically, a connection was identified between transformational leadership traits, such as identifying the need for change and fostering a supportive and participative leadership style, and strategic financial management practices, particularly regarding contract conditions of payment during project execution. The study recommends that leaders in the construction industry take proactive steps to ensure high performance standards, minimise conflicts at project sites, recognise the need for change, and promote compliance. It is crucial for leaders to reward and discipline personnel for violations of ethical values. Additionally, leaders in the construction sector should familiarise themselves with the project life cycle and cash cycle for ongoing projects to provide necessary guidance to site supervisors and finance officers for effective financial management. While autocratic leadership should generally be avoided in the construction industry, there are instances when it becomes necessary for leaders to make decisive autocratic decisions to ensure dormant projects are completed on time. Leadership must also demonstrate high ethical standards while pursuing organisational goals, be effective in strategy generation and execution at project sites, and actively support and motivate employees.