The Effect of Transformational Leadership on Sustainability Performance of Manufacturing Firms in Kenya.

Abstract:

This study examined the influence of specific dimensions of transformational leadership on the sustainability performance of manufacturing firms in Kenya. The research was hinged on the Stakeholder Theory and the Resource-Based View (RBV). A cross-sectional design was employed, with data collected from 351 managers via an online survey. Hierarchical multiple regression analysis revealed that inspirational motivation (b = 0.15, t = 3.76, p < .001), intellectual stimulation (b = 0.09, t = 2.05, p = .041) and individualized consideration (b = 0.18, t = 5.82, p < .001) had significant positive effects on sustainability performance. In contrast, idealized influence (b = -0.02, t = -0.53, p = .594) showed no significant effect. These findings underscore the importance of transformational leadership in advancing sustainability within the manufacturing sector and suggest that targeted leadership development may enhance organizational outcomes.