Strategic Pathways to Corporate Sustainability: The Roles of Transformational Leadership, Knowledge Sharing, and Innovation

Corporate sustainability has emerged as a critical imperative for firms navigating volatile markets and ecological constraints, yet the mechanisms linking organizational practices to sustainability outcomes remain underexplored, particularly in developing economies. Drawing on the resource-based view and dynamic capabilities theory, this paper examines how transformational leadership and knowledge sharing synergistically enhance innovation capability, which in turn fosters environmental dynamism and corporate sustainability performance. Using a structured questionnaire within a cross-sectional design to gather data from 140 Moroccan SMEs, data were collected via an online questionnaire from 140 Moroccan SME owners and managers, with hypotheses tested using partial least squares structural equation modeling (PLS-SEM). The results show that knowledge sharing, and transformational leadership significantly strengthen innovation capability. Innovation capability further drives environmental dynamism, which positively impacts sustainability performance. These findings advance theory by integrating knowledge-based, leadership, and dynamic capability perspectives into a novel pathway for achieving sustainability goals. The study underscores the necessity for SMEs in developing nations to cultivate leadership that inspires knowledge exchange and adaptive innovation, enabling resilience amid ecological and market shifts. By highlighting these internal drivers, the research offers actionable insights for SMEs and policymakers seeking to align business innovation strategies with sustainability objectives and pro-environmental transformation in line with the UN Sustainable Development Goals (SDGs).

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Publication Details

Journal
Sustainability
Published
2025-06-16
DOI
https://doi.org/10.3390/su17125547
Citations
21
Primary Topic
Economic and Business Development Strategies
Type
article
Field-Weighted Citation Impact
65.75
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article

Strategic Pathways to Corporate Sustainability: The Roles of Transformational Leadership, Knowledge Sharing, and Innovation

Maha Shehadeh, Mahmoud Elmarzouky, Doaa Shohaieb, Walid Simmou et al.
21 citations
Sustainability
Economic and Business Development Strategies
65.75
article

Strategic Pathways to Corporate Sustainability: The Roles of Transformational Leadership, Knowledge Sharing, and Innovation

Maha Shehadeh, Mahmoud Elmarzouky, Doaa Shohaieb, Walid Simmou, Ahmad Alqatan, Faisal AlReshaid
article en
21 citations

Abstract

Corporate sustainability has emerged as a critical imperative for firms navigating volatile markets and ecological constraints, yet the mechanisms linking organizational practices to sustainability outcomes remain underexplored, particularly in developing economies. Drawing on the resource-based view and dynamic capabilities theory, this paper examines how transformational leadership and knowledge sharing synergistically enhance innovation capability, which in turn fosters environmental dynamism and corporate sustainability performance. Using a structured questionnaire within a cross-sectional design to gather data from 140 Moroccan SMEs, data were collected via an online questionnaire from 140 Moroccan SME owners and managers, with hypotheses tested using partial least squares structural equation modeling (PLS-SEM). The results show that knowledge sharing, and transformational leadership significantly strengthen innovation capability. Innovation capability further drives environmental dynamism, which positively impacts sustainability performance. These findings advance theory by integrating knowledge-based, leadership, and dynamic capability perspectives into a novel pathway for achieving sustainability goals. The study underscores the necessity for SMEs in developing nations to cultivate leadership that inspires knowledge exchange and adaptive innovation, enabling resilience amid ecological and market shifts. By highlighting these internal drivers, the research offers actionable insights for SMEs and policymakers seeking to align business innovation strategies with sustainability objectives and pro-environmental transformation in line with the UN Sustainable Development Goals (SDGs).

SustainabilityVol. 17(12)
Al-Ahliyya Amman University (JO), University of St Andrews (GB), Aston University (GB), Université Ibn Zohr (MA), Arab Open University (KW), Menoufia University (EG), American University of Kuwait (KW)
Openalex Percentile: Top 0%
Economic and Business Development Strategies
65.75
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