Sustainable leadership and entrepreneurship for corporate sustainability in small enterprises: An empirical analysis

Abstract

Copyright © 2019 Inderscience Enterprises Ltd. This paper empirically investigates leadership and management practices that the literature suggests to influence organisational performance and corporate sustainability in entrepreneurial firms, an area that is lacking to date. Survey data were gathered from the 357 small business leaders in Thailand. A sustainability research model and hypotheses were developed based on sustainable leadership's theoretical framework. Factor analysis revealed eight leadership and management factors, including enabling and trusting team, valuing people, empowerment, ethics, long-term orientation, quality, stakeholder consideration and innovation, which were postulated to significantly and positively predict superior financial performance and sustainability in small, entrepreneurial firms. Regression results indicated that innovation, high quality and stakeholder consideration were three significant drivers for enhanced long-term financial performance, thereby contributing to corporate sustainability. Therefore, small and entrepreneurial enterprises in Thailand and possibly in other Asian countries should consider adopting these strategic leadership and management practices to grow superior financial results and corporate sustainability.