The Impact of Sustainable Leadership on Sustainable Performance: The Moderated Mediation of Green Organizational Culture and Organizational Commitment

Abstract

This study investigates the relationship between sustainable leadership and the sustainable performance of Small and Medium-sized Enterprises (SMEs) in Pakistan, with a particular focus on the mediating role of organizational commitment and the moderating influence of green organizational culture. Data were collected from 351 respondents representing small to medium-sized manufacturing firms using a purposive sampling technique. SmartPLS 4 software was employed to test the measurement and structural model and to test the hypotheses using partial least square structural equation modeling. The findings reveal a significant positive association between sustainable leadership and sustainable organizational performance. Moreover, organizational commitment was found to mediate this relationship, while green organizational culture emerged as a critical contextual factor influencing these dynamics. This study contributes to the existing literature by offering a novel perspective on how sustainable performance encompassing ethical practices, social responsibility, and environmental initiatives is vital for achieving long-term organizational success in a rapidly evolving business environment.