In Value Creation: The Mediating Roles of Lean Sustainability and Sustainable Quality Culture in Linking Values‐Based Leadership to Organizational Outcomes

ABSTRACT This research investigates the mechanisms by which value‐based leadership (VBL) impacts critical organizational outcomes, namely, operational performance (OPP), business performance (BSP), and business survival (BSV). Specifically, it examines the mediating roles of lean sustainability (LES) and sustainable quality culture (SQC) in translating leadership into tangible results. The research employs a quantitative research design using survey data collected from 402 middle and senior‐level managers. The proposed research model and hypotheses were tested using partial least squares structural equation modeling (PLS‐SEM) with SmartPLS 4. A two‐stage analytical approach was followed, involving the evaluation of the measurement model (reliability and validity) and the structural model (path coefficients and mediating effects). The direct effect of values‐based leadership on sustainable quality culture (β = 0.759; t = 26.912; p < 0.001) was identified as the strongest relationship in the model. In the mediation analysis, the indirect effect of values‐based leadership on lean sustainability through sustainable quality culture (β = 0.395; t = 12.494; p < 0.001) emerged as the most prominent mediation mechanism. All seven proposed hypotheses (between H1 and H7) were statistically supported, with coefficients excluding zero within the 95% confidence interval and significance levels of p < 0.001. While the research uses a robust sample of 402 managers, the use of non‐probability purposive sampling may limit generalizability. Future research could adopt longitudinal designs to further validate causal links over time or examine these dynamics across different sectors to determine whether sectoral nuances affect the mediating effect.