Leading for shared value: how leadership diversity shapes innovation and inclusion in South Africa’s banking sector

Abstract

Leadership diversity has emerged as a strategic lever for innovation and competitiveness in complex markets. Yet, within South Africa’s banking sector, limited empirical evidence explains how diverse leadership teams influence new product development (NPD) and shared value creation. This study addresses that gap by examining the relationship between leadership composition, innovation processes, and inclusive growth outcomes. Adopting a qualitative, interpretivists and phenomenological approach, semi-structured interviews were conducted with senior leaders engaged in NPD across banks with varying leadership diversity. Thematic analysis revealed that leadership diversity enhances cognitive breadth, empathy, and market insights; which are key enablers of product relevance and adoption in underserved segments. However, the findings also highlight that inclusion must extend beyond representation to influence decision-making and organisational culture. Results suggests that while representational diversity is a strategic advantage, it only drives sustainable innovation when fully embedded in a bank’s structures and relationships. This research advances theory by integrating Shared Value, DEI and resource-based perspectives and provides practical insights for banks aiming to leverage diversity for financial and social outcomes.