Investigating The Role Of Sustainable Leadership In Driving Organizational Sustainability

Abstract

Sustainable development is a burgeoning field that addresses the challenges of sustainable growth. Sustainable leadership, a novel approach to effective management, is crucial for integrating sustainability into a company's strategy. While leaders play a pivotal role in driving change, there remains a gap in understanding the relationship between leadership and sustainable practices, warranting further research. This gap is particularly evident in SMEs, where sustainable practices, sustainability performance, and leadership skills of employees are interconnected but not fully understood. To bridge this gap, a survey questionnaire was developed, and Structural Equation Modeling (SEM) was employed to analyze the moderating effect of leadership abilities on the relationship between sustainable practices and sustainability performance. The findings indicate that sustainable leadership practices, including labor relations, valuing employees, and shared vision, positively influence firm performance, highlighting the importance of integrating sustainable leadership into SMEs' operations.