The study sought to unravel the nexus between leadership styles, research and development and organizational performance of tea processing firms in Kericho and Kisii highlands in Kenya. With a view to ascertaining how leadership styles mediated by Research and Development (R&D) and organizational performance, and consequently enhance performance in organizations in Kenya. The study was anchored upon, Agency theory. The framework of the study was tea processing firms in the regions 5and 6 (Kericho and Kisii highlands) in Kenya. The study relied on primary data and questionnaires. The descriptive survey design was adopted with a response rate of 79.4%, and adopted a stratified sampling technique. The sample size of the study was 403 respondents. Data was analyzed using descriptive and inferential statistical techniques. T-test statistic was computed for intellectual capital and the results indicated that the strategy was statistically significant in enhancing organizational performance. The study results showed that leadership styles is significantly and positively associated to superior organizational performance, and that, although transformational leadership style is significantly and positively related to innovation, transactional leadership style is more appropriate when the aim is to instil a culture of R&D. By comparison, transformational leadership style, is mostly associated with organizational performance of tea processing firms. The review also suggests that a number of moderators and appropriate variables such as research teams and rate of technological change may make leadership in R&D in organizations different from their competitors.

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