Innovative Business Leadership Strategies and Sustainable Development in Kenya’s Manufacturing Sector

Abstract

The study examines how innovative business leadership strategies, such as transformational, participatory, technology-driven, and sustainability-oriented leadership strategies moderated by organizational culture, influence sustainable development in Kenya’s manufacturing sector. Grounded in transformational, participatory, technology acceptance, triple bottom line and organizational culture theories, the paper aims to determine which leadership practices most effectively promote economic growth, social equity and environmental protection within Kenya’s industrialization agenda. A convergent mixed-methods design was adopted for primary data collection. Quantitative data were gathered using structured questionnaires administered to 150 respondents from 50 registered manufacturing firms across food processing, textiles, chemicals and construction materials subsectors. The survey measured transformational, participatory, technology-driven and sustainability-oriented leadership practices alongside a composite index of firm sustainability outcomes. Qualitative evidence was collected through semi-structured interviews with managers and employees and analyzed thematically to contextualize quantitative findings. Descriptive analysis shows transformational and participatory leadership are moderately practiced, technology-driven leadership is weak, and sustainability-oriented leadership is moderate, with greater emphasis on corporate social responsibility and governance than on environmental practices. Organizational culture appears moderately supportive but constrained by limited adaptability. Pearson correlation coefficients indicate positive, statistically significant relationships between each leadership dimension and sustainable development indicators. Multivariable regression analysis explains approximately 62% of the variance in sustainable development outcomes, with sustainability-oriented leadership and transformational leadership exhibiting the largest standardized effects, followed by organizational culture, participatory leadership and technology-driven leadership. The findings imply that achieving sustainable industrial transformation in Kenya requires leaders who combine clear vision, inclusivity and a deliberate sustainability agenda, supported by adaptive organizational cultures and targeted investments in technology and workforce capacity. Policy incentives for green investment, managerial capacity building and expanded technology training, together with firm-level reforms that strengthen participatory decision-making, will help translate leadership intent into measurable, sustainable outcomes and advance Kenya’s progress toward Vision 2030 and the Sustainable Development Goals.