Disruptive sustainability and its impact on organizations through the lens of institutional theory

Purpose This study aims to investigates the concept of disruptive sustainability and its transformative impact on organizations through the lens of institutional theory. The research explores how external pressures drive organizations to institutionalize sustainability by reshaping leadership behaviours, human resource management (HRM) practices and employee engagement. Design/methodology/approach As a methodological approach, this study uses data from 1, 760 employees across 202 Greek organizations. The empirical analysis employs multi-level structural equation modelling to validate the relationships between disruptive sustainability, leadership, HRM practices and organizational performance. Findings The findings reveal that sustainability-focused leadership and HRM practices, driven by institutional pressures, are critical in fostering sustainable innovation and organizational change. Leadership styles that respond to external demands, such as responsive, supportive and developmental, are pivotal in embedding sustainability into organizational processes. Research limitations/implications Limitations include the focus on the Greek context only. Future research should incorporate comparisons to explore the evolving role of institutional pressures in sustainability-driven organizational success. Originality/value The study highlights the importance of high levels of employee engagement, characterized by vigour, dedication and absorption, in translating institutional sustainability pressures into tangible organizational performance. This research contributes to sustainability literature by offering a multi-level perspective grounded in institutional theory, emphasizing the role of external forces in shaping organizational strategies.