Innovative Business Leadership Strategies for Sustainable Development in a Dynamic World

##plugins.themes.academic_pro.article.sidebar##

Published Dec 13, 2025
https://doi.org/10.71064/spu.amjr.2.3.2025.457
Download
PDF
Statistic
Vol. 2 No. 3 (2025): Vol. 2 No. 3 (2025): Special Issue - African Multidisciplinary Journal of Research (AMJR) - 2025

##plugins.themes.academic_pro.article.main##

Mary Wangui Mbugua
St. Paul's University

Abstract

In this period of rapid technological shifts, climate imperatives, and socioeconomic volatility, business leadership must evolve beyond traditional paradigms to foster long-term, sustainable success. This paper explores innovative leadership strategies that will support organizations to drive sustainable development but remain resilient and adaptive in a dynamic global environment. It emphasizes a purpose-driven, systems-oriented strategies that embed environmental, social, and governance (ESG) factors into the central operations and decision-making of the business. The study will identify and analyze forward-thinking leadership practices, including stakeholder capitalism, adoption of the circular economy, inclusive decision-making, and digital transformation for sustainability. By fostering agility, ethical governance, and collaborative innovation, these strategies empower leaders to not only navigate uncertainty but also create enduring value for society and the planet. The objectives of this study were to examine how innovative leadership models align with the values of sustainable development; identify the key competencies and mindsets required for effective leadership in rapidly changing environments, evaluate the impact of stakeholder engagement and inclusive governance on business sustainability; recommend practical models that embed sustainability into strategic decision-making and overall organizational culture. The significance of this study will bridge the gap between traditional leadership practices and contemporary sustainability demands, offering insights that can guide organizations toward long-term resilience and ethical growth. Anticipated findings suggest that organizations led by visionary, flexible, and sustainability-oriented leaders are more likely to foster innovation, gain a competitive advantage, and maintain stakeholder trust in volatile markets. Furthermore, this study pointed out the significance of leadership agility and collaborative ecosystems in driving transformative change across industries. These findings aim to contribute to both academic and practical frameworks for leadership development in sustainable business contexts.

##plugins.themes.academic_pro.article.details##

How to Cite
Wangui Mbugua , M. . (2025). Innovative Business Leadership Strategies for Sustainable Development in a Dynamic World. African Multidisciplinary Journal of Research, 2(3), 84–105. https://doi.org/10.71064/spu.amjr.2.3.2025.457

References

  1. Abdeen, H., De-Pablos-Heredero, C., Cosculluela-Martínez, C., & Montes-Botella, J.-L. (2025). Strategic leadership and its impact on dynamic capabilities and sustainable competitive advantages. Management Decision. Advance online publication. https://doi.org/10.1108/MD-07-2024-1682
  2. Aldowaish, A., Kokuryo, J., Almazyad, O., & Goi, H. C. (2022). Environmental, social, and governance integration into the business model: Literature review and research agenda. Sustainability, 14(5), 2959. https://doi.org/10.3390/su14052959
  3. Alemu, B. A. (2025). Cultivating a culture of sustainability: The role of organizational values and leadership in driving sustainable practices. Business Ethics and Leadership, 9(1), 79–94. https://armgpublishing.com/journals/bel/volume-9-issue-1/article-6/
  4. Alojail, M., & Khan, S. B. (2023). Impact of digital transformation toward sustainable development. Sustainability, 15(20), 14697. https://doi.org/10.3390/su152014697
  5. Andersen, M. S. (2007). An introductory note on the environmental economics of the circular economy. Sustainability Science, 2(1), 133–140. https://doi.org/10.1007/s11625-006-0013-6
  6. Aragón-Correa, J. A., & Rubio-López, E. A. (2007). Proactive corporate environmental strategies: Myths and misunderstandings. Long Range Planning, 40(3), 357–381. https://doi.org/10.1016/j.lrp.2007.02.008
  7. Avolio, B. J., & Gardner, W. L. (2005). Authentic leadership development: Getting to the root of positive forms of leadership. The Leadership Quarterly, 16(3), 315–338. https://doi.org/10.1016/j.leaqua.2005.03.001
  8. Ayuso, S., Rodríguez, M. A., García-Castro, R., & Ariño, M. A. (2014). Maximizing stakeholders’ interests: An empirical analysis of the stakeholder approach to corporate governance. Business & Society, 53(3), 414–439. https://doi.org/10.1177/0007650311433122
  9. Bell, K., & Reed, M. (2022). The tree of participation: A new model for inclusive decision-making. Community Development Journal, 57(4), 595–614. https://doi.org/10.1093/cdj/bsab018
  10. Berns, M., Townend, A., Khayat, Z., Balagopal, B., Reeves, M., Hopkins, M., & Kruschwitz, N. (2009). Sustainability and competitive advantage. [Report].
  11. Bocken, N. M. P., De Pauw, I., Bakker, C., & Van der Grinten, B. (2016). Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, 33(5), 308–320. https://doi.org/10.1080/21681015.2016.1172124
  12. Burns, J. M. (2004). Transforming leadership: A new pursuit of happiness. Grove Press.
  13. Carlsen, L., & Bruggemann, R. (2022). The 17 United Nations’ sustainable development goals: A status by 2020. International Journal of Sustainable Development & World Ecology. https://www.tandfonline.com/doi/abs/10.1080/13504509.2021.1948456
  14. Costumado, M., & Chemane, J. A. D. (2024). Stakeholder engagement and community participation in sustainable development in Southern Africa. In N. Tshishonga & I. Tshabangu (Eds.), Advances in finance, accounting, and economics (pp. 48–72). IGI Global. https://doi.org/10.4018/979-8-3693-0477-8.ch004
  15. Crosby, T. (2025). Integrated sustainable development leadership. In Encyclopedia of diversity, equity, inclusion and spirituality (pp. 1–13). Springer. https://doi.org/10.1007/978-3-031-32257-0_214-1
  16. Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857. https://doi.org/10.1287/mnsc.2014.1984
  17. Engert, S., Rauter, R., & Baumgartner, R. J. (2016). Exploring the integration of corporate sustainability into strategic management: A literature review. Journal of Cleaner Production, 112, 2833–2850. https://doi.org/10.1016/j.jclepro.2015.08.031
  18. Eva, N., Robin, M., Sendjaya, S., Van Dierendonck, D., & Liden, R. C. (2019). Servant leadership: A systematic review and call for future research. The Leadership Quarterly, 30(1), 111–132. https://doi.org/10.1016/j.leaqua.2018.07.004
  19. Freeman, R. E., & Dmytriyev, S. (2017). Corporate social responsibility and stakeholder theory: Learning from each other. Symphonya: Emerging Issues in Management, 1, 7–15. https://doi.org/10.4468/2017.1.02freeman.dmytriyev
  20. Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The circular economy: A new sustainability paradigm? Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048
  21. George, G., Merrill, R. K., & Schillebeeckx, S. J. D. (2021). Digital sustainability and entrepreneurship: How digital innovations are helping tackle climate change and sustainable development. Entrepreneurship Theory and Practice, 45(5), 999–1027. https://doi.org/10.1177/1042258719899425
  22. Haque, A., Fernando, M., & Caputi, P. (2021). Responsible leadership and employee outcomes: A systematic literature review, integration and propositions. Asia-Pacific Journal of Business Administration, 13(3), 383–408. https://doi.org/10.1108/APJBA-11-2019-0243
  23. Hariram, N. P., Mekha, K. B., Suganthan, V., & Sudhakar, K. (2024). Decoding the epics of sustainable world: Sustainalism. Social Sciences & Humanities Open, 10, 100958. https://doi.org/10.1016/j.ssaho.2024.100958
  24. Hörisch, J., Freeman, R. E., & Schaltegger, S. (2014). Applying stakeholder theory in sustainability management: Links, similarities, dissimilarities, and a conceptual framework. Organization & Environment, 27(4), 328–346. https://doi.org/10.1177/1086026614535786
  25. Jack, W., & Suri, T. (2014). Risk sharing and transactions costs: Evidence from Kenya’s mobile money revolution. American Economic Review, 104(1), 183–223. https://doi.org/10.1257/aer.104.1.183
  26. Korejan, M. M., & Shahbazi, H. (2016). An analysis of the transformational leadership theory. Journal of Fundamental and Applied Sciences, 8(3), 452–461. https://doi.org/10.4314/jfas.v8i3s.192
  27. London, M., & Sherman, G. D. (2021). Becoming a leader: Emergence of leadership style and identity. Human Resource Development Review, 20(3), 322–344. https://doi.org/10.1177/15344843211009632
  28. Lozano, R. (2015). A holistic perspective on corporate sustainability drivers. Corporate Social Responsibility and Environmental Management, 22(1), 32–44. https://doi.org/10.1002/csr.1325
  29. Maak, T., & Pless, N. M. (2022). Introduction: The quest for responsible leadership in business. https://www.taylorfrancis.com/chapters/edit/10.4324/9780203002247-1/introduction-thomas-maak-nicola-pless
  30. Maguate, G. (2024). Understanding sustainable leadership: A review and forward outlook [SSRN Scholarly Paper No. 4873100]. Social Science Research Network. https://doi.org/10.2139/ssrn.4873100
  31. Mittal, S., & Dhar, R. L. (2016). Effect of green transformational leadership on green creativity: A study of tourist hotels. Tourism Management, 57, 118–127. https://doi.org/10.1016/j.tourman.2016.05.007
  32. Noland, J., & Phillips, R. (2010). Stakeholder engagement, discourse ethics and strategic management. International Journal of Management Reviews, 12(1), 39–49. https://doi.org/10.1111/j.1468-2370.2009.00279.x
  33. Rachwał-Müller, A., Pawliczek, A., & Radin, M. (2024). Cultivating global leadership: Competencies, development, and future directions [SSRN Scholarly Paper No. 5066031]. Social Science Research Network. https://doi.org/10.2139/ssrn.5066031
  34. Rimanoczy, I. (2020). The sustainability mindset principles: A guide to developing a mindset. Routledge. https://www.taylorfrancis.com/books/mono/10.4324/9781003095637
  35. Robertson, J. L., & Barling, J. (2017). Toward a new measure of organizational environmental citizenship behavior. Journal of Business Research, 75, 57–66. https://doi.org/10.1016/j.jbusres.2017.02.007
  36. Rockstuhl, T., Seiler, S., Ang, S., Van Dyne, L., & Annen, H. (2011). Beyond general intelligence (IQ) and emotional intelligence (EQ): The role of cultural intelligence (CQ) on cross-border leadership effectiveness in a globalized world. Journal of Social Issues. https://spssi.onlinelibrary.wiley.com/doi/10.1111/j.1540-4560.2011.01730.x
  37. Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117–2135. https://doi.org/10.1080/00207543.2018.1533261
  38. Sacavem, A., Cruz, R., Sousa, M. J., Rosario, A., & Gomes, J. S. (2019). An integrative literature review on leadership model for innovative organizations. Journal of Reviews on Global Economics, 8, 1741–1751.
  39. Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
  40. Sathiyaseelan, A., Balasundaram, S., Zirkler, M., & Patangia, B. (2024). Innovative leadership and sustainable development: Exploring resource-efficient strategies among Indian managers. Business Strategy and Development, 7(4). https://doi.org/10.1002/bsd2.70049
  41. Schoemaker, P. J. H., Heaton, S., & Teece, D. (2018). Innovation, dynamic capabilities, and leadership. California Management Review. https://doi.org/10.1177/0008125618790246
  42. Senge, P. M. (1994). The fifth discipline: The art and practice of the learning organization (1st Currency paperback ed.). Currency Doubleday.
  43. Serafeim, G. (2020). Public sentiment and the price of corporate sustainability. Financial Analysts Journal, 76(2), 26–46. https://doi.org/10.1080/0015198X.2020.1723390
  44. Siqi. (2025). Employee perceptions of authentic leadership and its effect on employee job satisfaction [Doctoral dissertation, ProQuest Dissertations Publishing]. https://www.proquest.com/openview/5eeda74341ba7f6cd0cb2116cfbe6576/1
  45. Sousa, M., & van Dierendonck, D. (2015). Servant leadership and the effect of the interaction between humility, action, and hierarchical power on follower engagement. Journal of Business Ethics. https://doi.org/10.1007/s10551-015-2725-y
  46. Stonewall, J., Dorneich, M. C., Shenk, L., Krejci, C. C., & Passe, U. (2019). Inclusive decision-making: Applying human factors methods to capture the needs and voices of marginalized populations. In Advancing diversity, inclusion, and social justice through human systems engineering. CRC Press.
  47. Streimikiene, D., Mikalauskiene, A., & Ciegis, R. (2019). Sustainable development, leadership, and innovations. CRC Press. https://doi.org/10.1201/9781003003397
  48. Teske, S. (Ed.). (2019). Achieving the Paris Climate Agreement goals: Global and regional 100% renewable energy scenarios with non-energy GHG pathways for +1.5°C and +2°C. Springer Nature. https://doi.org/10.1007/978-3-030-05843-2
  49. Uhl-Bien, M., & Arena, M. (2018). Leadership for organizational adaptability: A theoretical synthesis and integrative framework. The Leadership Quarterly, 29(1), 89–104. https://doi.org/10.1016/j.leaqua.2017.12.009
  50. Walumbwa, F. O., Peterson, S. J., Avolio, B. J., & Hartnell, C. A. (2010). An investigation of the relationships among leader and follower psychological capital, service climate, and job performance. [Journal not specified]. https://onlinelibrary.wiley.com/doi/10.1111/j.1744-6570.2010.01193.x