The role of sustainable leadership in enhancing dynamic capability of Agro-based firms in North-Kivu, DRC

This study investigates how sustainable leadership enhances dynamic capability in agro-based firms in North-Kivu, Democratic Republic of Congo (DRC). Using a mixed-methods approach, data were collected from 300 managers across ten firms through structured surveys and 12 semi-structured interviews. Structural equation modelling results showed that ethical leadership (β = 0.42, p < 001) strongly improves sensing capability, long-term strategic orientation (β = 0.38, p < 001) enhances seizing capability, and stakeholder engagement (β = 0.33, p = 002), along with environmental responsibility (β = 0.27, p = 008), positively influence reconfiguring capability. Participatory decision-making (β = 0.31, p = 003) and organisational learning orientation (β = 0.40, p < 001) further strengthen overall dynamic capabilities. Sustainable leadership explains 28% of variance in sensing, 32% in seizing, and 35% in reconfiguring capabilities, with a moderate effect size (f2 = 0.22 – 0.27) and predictive relevance (Q2 = 0.20 - 025). Qualitative findings highlight trust-based information exchange, collaborative stakeholder networks, and knowledge-informed decision-making as mechanisms driving adaptability. These results emphasize the importance of institutionalising ethical norms, fostering participatory governance, and investing in continuous learning systems to enhance organizational resilience, strategic flexibility, and competitiveness. The study contributes to theory by demonstrating the central role of sustainable leadership in shaping dynamic capabilities within resource-constrained and fragile institutional environments and offers practical guidance for strengthening agro-based firms in North-Kivu.