Innovative leadership and Organizational Performance Among Domestic Airlines in Kenya

Abstract

The domestic airline industry in Kenya operates within a highly dynamic environment marked by rapid technological advancements, stringent regulatory frameworks, and intense market competition. This study assessed the role of innovative leadership in enhancing organizational performance among Kenya’s domestic commercial airlines. Grounded in the Resource-Based View (RBV), innovative leadership was conceptualized as a strategic internal resource encompassing strategic visioning, employee empowerment, adaptability and learning orientation, and communication clarity. A positivist philosophy and quantitative cross-sectional survey design were adopted, targeting 170 management-level respondents drawn from all 17 registered domestic commercial airlines in Kenya. Primary data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson’s correlation, and simple linear regression. Descriptive analysis revealed a moderately strong presence of innovative leadership practices across the sector, with leadership practices perceived as consistent but requiring reinforcement in adaptability and proactive communication. Correlation analysis established a strong and statistically significant positive relationship between innovative leadership practices and organizational performance (r = 0.800, p < 0.01), confirming leadership’s critical role in shaping operational efficiency, market competitiveness, and customer satisfaction. Regression analysis demonstrated that innovative leadership practices explained 64% of the variance in organizational performance (R2 = 0.640), with each unit increase in innovative leadership associated with a 0.851- unit improvement in performance outcomes. The findings reinforce the RBV argument that leadership capabilities are valuable, rare, inimitable, and non-substitutable resources essential for competitive advantage. The study concludes that innovative leadership significantly enhances the performance of domestic commercial airlines in Kenya. It recommends institutionalizing innovation-driven leadership development, embedding employee empowerment, strengthening strategic visioning and adaptability, enhancing communication clarity, and recognizing innovative leadership as a strategic resource for sectoral growth and competitiveness. These insights provide actionable guidance for airline managers, policymakers, and regulators committed to transforming Kenya’s aviation industry.