International Business Research; Vol. 11, No. 11; 2018 ISSN 1913-9004 E-ISSN 1913-9012 Published by Canadian Center of Science and Education 143 Leadership Strategy, Behavioural Focus and Firm Performance: A Review of Literature Janet K. Muthimi 1 , James M. Kilika 1 1 Department of Business Administration, Kenyatta University, Kenya Correspondence: James M. Kilika, Department of Business Administration, Kenyatta University, Kenya. E-mail:kilikam3@yahoo.com Received: September 17, 2018 Accepted: October 15, 2018 Online Published: October 23, 2018 doi:10.5539/ibr.v11n11p143 URL: https://doi.org/10.5539/ibr.v11n11p143 Abstract The strategic management literature has laid emphasis on the role of leadership at several phases of the strategic management process. The literature has however not addressed the construct of leadership strategy as well as integrating it into the mainstream literature on strategic management. Researches already done to link leadership with performance have been biased in terms of the scope of focus on the dimension of performance and at the same time have registered methodological and conceptual challenges affecting the generalization of findings. In this paper, the authors integrate the extant literature on leadership with that on leadership strategy and identify issues that call for an expanded scope on the construct of leadership. The paper reviews extant conceptual, theoretical and empirical literature and raises diverse issues that present a case for a new theoretical model suitable to extend the current understanding on leadership and the phenomenon it brings about in organization into new frontiers in management. This paper proposes an integrated theoretical model for linking leadership strategies and firm performance while providing for the role of leadership paradigms, leadership behavioural focus and firm capabilities. The emerging theoretical propositions and implications for future research are discussed. Keywords: leadership, leadership strategy, leadership behavioural focus, firm capabilities, leadership paradigms, firm performance 1. Introduction The strategic management literature has laid emphasis on the role played by leadership at several phases of the strategic management process which entail strategy formulation, choice and implementation, (Pearce, Robinson & Mital, 2007). One specific area across these that has been seen to link with leadership is that of change, a key theme in strategic management studies. Operationalization of the change management in an organization is executed through a well thought-out leadership process in a firm. Fitzroy and Hulbert, (2005) support this view and add that leadership is critical in the success of this process. While Thompson and Strickland (1993) hold the view that management devises an organization’s strategy towards enhancing an organization’s performance, scholars such as Pearce, Robinson and Mital, (2012) on the other hand, iterate that leaders need to spur commitment to embrace change by clarifying the strategic intent, building an organization and shaping its culture. Whereas crafting and implementing a strategy for the business are management functions, it is clear that among all the things that managers do, few affect the organization’s performance in a more lasting way than the manner in which the management team handles the tasks of charting the organization's long-term direction through leadership so as to produce the intended results. There are emerging indications that leadership comes in the process of strategy implementation because it exerts the facilitation needed to drive implementation forward and keep improving on how the strategy is being executed and that strong leadership is always essential for effective strategy execution (Pasmore, 2014). Traditionally, leadership has been discussed in the context of the functions of management and specifically related to the provision of direction towards the achievement of the organizational goals, (Thompson & Strickland, 1993). There are important aspects of leadership which have been generated from the traditional perspective touching on the use of power, influence, leadership styles, characteristics and behaviours. Whereas in this traditional perspective, these cited aspects have been given some theoretical and conceptual attention, the developments in