Innovative Leadership and Sustainability Practices in Egyptian SMEs: A Strategic Pathway to Performance within Egypt Vision 2030 | ||
| المجلة العربية للإدارة | ||
| Articles in Press, Accepted Manuscript, Available Online from 14 October 2025 PDF (285.22 K) | ||
| Document Type: بحوث باللغة الإنجلیزیة | ||
| DOI: 10.21608/aja.2025.415676.1926 | ||
| Authors | ||
| Ahmed Omar* 1; Sahar Badawy2 | ||
| 1Arab Academy for Science, Technology and Maritime Transport, Graduate School of Business (AASTMT), Cairo, Egypt | ||
| 2British University in Egypt (BUE) | ||
| Abstract | ||
| Small and medium-sized enterprises (SMEs) constitute the backbone of Egypt’s economy, representing over 95% of private sector firms and contributing significantly to employment and GDP. However, their growth is constrained by limited resources, outdated practices, and weak institutional support. This study investigates the strategic role of innovative leadership in enhancing SME performance through the mediating effect of sustainability practices, within the framework of Egypt Vision 2030. Grounded in the Resource-Based View (RBV) and the Triple Bottom Line (TBL) approach, the research employs Structural Equation Modelling (SEM) to analyze survey data from 420 SMEs across multiple sectors and regions. Results reveal that innovative leadership significantly influences sustainability adoption (β = 0.61, p < 0.001), which in turn strongly enhances firm performance (β = 0.52, p < 0.001). Mediation analysis confirms that sustainability partially mediates the leadership–performance nexus, underscoring its strategic role as a mechanism of value creation rather than a peripheral outcome. The findings highlight that SMEs embracing sustainability not only achieve operational efficiency and competitive advantage but also contribute meaningfully to Egypt’s sustainable development agenda. The study provides theoretical insights into the integration of leadership and sustainability in emerging economies and offers practical recommendations for SME managers, policymakers, and development agencies aiming to foster resilient, future-ready enterprises aligned with national goals. | ||
| Keywords | ||
| Innovative leadership; sustainability practices; SME performance; Egypt Vision 2030; Resource-Based View (RBV); Triple Bottom Line (TBL); structural equation modeling; emerging economies | ||
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