Transformational Leadership and Organisational Performance of Plastic Manufacturing Companies in Nairobi and Kiambu, Kenya
Abstract
Globalisation and technological change continue to reshape organisational performance in Kenya’s plastic manufacturing companies, which contribute about 7% to the national manufacturing industry. This study examined the effect of transformational leadership on organisational performance among plastic manufacturing firms in Nairobi and Kiambu Counties. Guided by Transformational Leadership Theory, Organisational Performance Theory, and the Resource-Based View (RBV), the research focused on four dimensions of transformational leadership idealised influence, inspirational motivation, individualised consideration, and intellectual stimulation and their impact on both financial (market share, revenue growth) and non-financial (employee satisfaction) outcomes. Using a descriptive research design, data were collected from 360 respondents selected through stratified random sampling and analysed using descriptive statistics, correlation, and multiple regression. The findings indicated that all four leadership dimensions significantly enhance performance, with idealised influence and intellectual stimulation showing the strongest effects. Employee-driven innovation and problem-solving emerged as key mediators of performance improvement. The study concludes that an integrated transformational leadership approach anchored in ethical behaviour, environmental wellness and technological creativity is critical for sustaining competitiveness and growth. It recommends further research on organisational culture, external dynamics, and enhanced policy support from the Kenya Association of Manufacturers to promote ESG practices and innovation in the industry.
Keywords: Transformational Leadership, Organizational Performance, Plastic Manufacturing, Idealized Influence, Intellectual Stimulation.
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