Leadership Styles and Sustainable Performance: The Mediating Role of Extra Role Behavior and Human Capital in Pakistani SMEs
DOI:
https://doi.org/10.58932/MULE0053Keywords:
Extra-Role Behavior, Human Capital, Servant Leadership, Spiritual Leadership, Sustainable PerformanceAbstract
This study explores the influence of different styles of leadership, specifically servant leadership and spiritual leadership, on sustainable performance in the setting of small and medium-sized enterprises (SMEs) in Pakistan. Through this research, the researchers want to achieve a thorough grasp of how these leadership styles influence sustainable performance, including human capital and extra-role behavior. A total sample size of 503 participants from different SMEs was used to gather data, employing a purposive sampling technique. Data was analyzed using smart PLS. The findings of the study indicate that both servant and spiritual leadership have a positive and significant impact on sustainable performance. The mediating roles of human capital and extra-role behavior were also found to be significant, highlighting their importance in the overall leadership-performance dynamic. It offers practical understandings for leaders and policymakers on how to harness the potential of servant and spiritual leadership to achieve sustainability. This study contributes to testing effects of leadership styles and mediators on sustainable performance in the context of Pakistani SMEs. There were certain limitations of the study e.g. data was cross sectional and only golden triangle was targeted for data collection, which can be addressed in the future.
References
Aboramadan, M., Dahleez, K. A., & Farao, C. (2022). Inclusive leadership and extra-role behaviors in higher education: does organizational learning mediate the relationship? International Journal of Educational Management, 36(4), 397–418.
Abu-Rumman, A. (2021). Transformational leadership and human capital within the disruptive business environment of academia. World Journal on Educational Technology: Current Issues, 13(2), 178–187.
Alafeshat, R., & Aboud, F. (2019). Servant leadership impact on organizational performance: The mediating role of employee engagement. International Journal of Human Resource Studies, 9(3), 85–100.
Alafeshat, R., & Tanova, C. (2019). Servant leadership style and high-performance work system practices: Pathway to a sustainable Jordanian airline industry. Sustainability, 11(22), 6191.
Alrowwad, A. a., Abualoush, S. H., & Masa'deh, R. e. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance. Journal of Management Development, 39(2), 196–222.
Ayu Putu Widani Sugianingrat, I., Rini Widyawati, S., Alexandra de Jesus da Costa, C., Ximenes, M., Dos Reis Piedade, S., & Gede Sarmawa, W. (2019). The employee engagement and OCB as mediating on employee performance. International Journal of Productivity and Performance Management, 68(2), 319–339.
Balfour, D. L., & Wechsler, B. (1996). Organizational commitment: Antecedents and outcomes in public organizations. Public Productivity & Management Review, 256–277.
Bank, W. (2022). The World Bank Data. https://databank.worldbank.org
Darvishmotevali, M., & Altinay, L. (2022). Green HRM, environmental awareness and green behaviors: The moderating role of servant leadership. Tourism Management, 88, 104401.
Faber, N., Jorna, R., & Van Engelen, J. (2005). The sustainability of" sustainability" A study into the conceptual foundations of the notion of" sustainability". Journal of Environmental Assessment Policy and Management, 7(01), 1–33.
Fry, L. W., Vitucci, S., & Cedillo, M. (2005). Spiritual leadership and army transformation: Theory, measurement, and establishing a baseline. The leadership quarterly, 16(5), 835–862.
Greenleaf, R. K. (2002). Servant leadership: A journey into the nature of legitimate power and greatness. Paulist press, 270-335p.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis. http:/www.cengage.co.uk. ISBN: 978-4737-5654-0
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2–24.
Hair Jr, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of business research, 109, 101–110.
Hashim, M., Khan, M. A., & Adnan, S. (2019). Servant leadership and enhancement of organizational performance. Global Social Sciences Review, 4(1), 117–122.
Hermawati, A., & Mas, N. (2017). Mediation effect of quality of worklife, job involvement, and organizational citizenship behavior in relationship between transglobal leadership to employee performance. International Journal of Law and Management, 59(6), 1143–1158.
Hosain, S., Manzurul Arefin, A. H. M., & Hossin, M. (2020). The role of human resource information system on operational efficiency: evidence from MNCs operating in Bangladesh. Asian Journal of Economics, Business and Accounting, 18(2), 29–47.
Idawati, K., & Mahadun, H. (2022). The Role Of Spiritual Leadership in Improving Job Commitment, Organizational Citizenship Behavior and Employee Performance. Jurnal Aplikasi Manajemen, 20(3), 578–593.
Iqbal, A., Latif, K. F., & Ahmad, M. S. (2020). Servant leadership and employee innovative behaviour: exploring psychological pathways. Leadership & organization development Journal, 41(6), 813–827.
Iqbal, Q., & Ahmad, N. H. (2021). Sustainable development: The colors of sustainable leadership in learning organization. Sustainable Development, 29(1), 108–119.
Jabbouri, N. I., & Zahari, I. (2017). An Empirical Study of Human-Capital as a Mediator on the Relationship between Strategic Leadership Styles and Sustainable Competitive Advantage in Iraqi Private Universities. International Journal of Science and Research, 6(5), 344–352.
Jamshed, K., Shah, S. H. A., Majeed, Z., Al-Ghazali, B., & Jamshaid, S. (2022). Role of Green Leadership and Green Training on the Green Process Innovation: Mediation of Green Managerial Innovation. Journal of Xidian University, 16(2), 66–72.
Kaltiainen, J., & Hakanen, J. (2022). Fostering task and adaptive performance through employee well-being: The role of servant leadership. BRQ Business Research Quarterly, 25(1), 28–43.
Ledesma-Zalsos, B. E. (2015). A causal model of spiritual leadership, spiritual well-being and employee engagement: leverage to organizational performance. Liceo Journal of Higher Education Research, 11(1).
Liu, R., Yue, Z., Ijaz, A., Lutfi, A., & Mao, J. (2023). Sustainable Business Performance: Examining the Role of Green HRM Practices, Green Innovation and Responsible Leadership through the Lens of Pro-Environmental Behavior. Sustainability, 15(9), 7317.
Lusiani, M., Abidin, Z., Fitrianingsih, D., Yusnita, E., Adiwinata, D., Rachmaniah, D., . . . Purwanto, A. (2020). Effect of servant, digital and green leadership toward business performance: evidence from Indonesian manufacturing. Systematic Reviews in Pharmacy, 11.
Manoppo, V. P. (2020). Transformational leadership as a factor that decreases turnover intention: a mediation of work stress and organizational citizenship behavior. The TQM journal, 32(6), 1395–1412.
Mubarik, M. S., & Bontis, N. (2022). Intellectual capital, leadership and competitive advantage: a study of the Malaysian electrical and electronics industry. International Journal of Learning and Intellectual Capital, 19(6), 562–583.
Nara, E. O. B., da Costa, M. B., Baierle, I. C., Schaefer, J. L., Benitez, G. B., do Santos, L. M. A. L., & Benitez, L. B. (2021). Expected impact of industry 4.0 technologies on sustainable development: A study in the context of Brazil's plastic industry. Sustainable Production and Consumption, 25, 102–122.
Novitasari, D., Asbari, M., Wijayanti, L. M., Hyun, C. C., & Farhan, M. (2020). The role of religiosity, leadership style, job satisfaction and organizational citizenship behavior mediation on woman teachers’ performance. Solid State Technology, 63(6), 2953–2967.
Ogunsola, K. O., Sarif, S. M., & Fonatine, R. A. (2020). Islamic Performance Instrument (IPI): An Alternative Servant Leadership (SL) tool for Sustainable Development Goals (SDGs). IJIBE (International Journal of Islamic Business Ethics), 5(1), 1–20.
Oh, J., & Wang, J. (2020). Spiritual leadership: Current status and agenda for future research and practice. Journal of Management, Spirituality & Religion, 17(3), 223–248.
Organ, D. W. (1988). Organizational citizenship behavior: The good soldier syndrome. https://doi.org/10.2307/2393071
Pasamar, S., Diaz-Fernandez, M., & de La Rosa-Navarro, M. D. (2019). Human capital: the link between leadership and organizational learning. European Journal of Management and Business Economics, 28(1), 25–51.
Peters, Y. (2019). Exploring Leadership Skills for the Sustainability of Small and Medium-Sized Enterprises. Walden University,
Piwowar-Sulej, K., & Iqbal, Q. (2022). Leadership styles and sustainable performance: A systematic literature review. Journal of Cleaner Production, 134600.
Putra, G. B. L., Widyani, A. A. D., & Widnyana, I. W. (2022). The Effect of Spiritual Leadership and Organizational Culture on Employee Performance with Organization Citizenship Behaviors (OCB) As Intervening Variabble. Ajhssr. Com,(07), 264–272.
Qalati, S. A., Zafar, Z., Fan, M., Limón, M. L. S., & Khaskheli, M. B. (2022). Employee performance under transformational leadership and organizational citizenship behavior: A mediated model. Heliyon, 8(11).
Rezaei, F., Khalilzadeh, M., & Soleimani, P. (2021). Factors affecting knowledge management and its effect on organizational performance: Mediating the role of human capital. Advances in Human-Computer Interaction, 2021, 1–16.
Ribeiro, N., Duarte, A. P., & Filipe, R. (2018). How authentic leadership promotes individual performance: mediating role of organizational citizenship behavior and creativity. International Journal of Productivity and Performance Management, 67(9), 1585–1607.
Saleem, F., Zhang, Y. Z., Gopinath, C., & Adeel, A. (2020). Impact of servant leadership on performance: The mediating role of affective and cognitive trust. Sage Open, 10(1), 2158244019900562.
Salehi, M., Fahimi, M. A., Zimon, G., & Homayoun, S. (2022). The effect of knowledge management on intellectual capital, social capital, and firm innovation. Journal of Facilities Management, 20(5), 732–748.
Sarfraz, M., Ivascu, L., Abdullah, M. I., Ozturk, I., & Tariq, J. (2022). Exploring a pathway to sustainable performance in manufacturing firms: The interplay between innovation capabilities, green process, product innovations and digital leadership. Sustainability, 14(10), 5945.
Shmueli, G., & Koppius, O. R. (2011). Predictive analytics in information systems research. MIS Quarterly, 553–572.
Siddiquei, A., Asmi, F., Asadullah, M. A., & Mir, F. (2021a). Environmental-specific servant leadership as a strategic tool to accomplish environmental performance: a case of China. International Journal of Manpower.
Siddiquei, A., Asmi, F., Asadullah, M. A., & Mir, F. (2021b). Environmental-specific servant leadership as a strategic tool to accomplish environmental performance: A case of China. International Journal of Manpower, 42(7), 1161–1182.
Sinarti, T., & Sopiah, S. (2023). Why Spiritual Leadership is Such an Important Component of the Company: Scoping Overview. EKSYAR : Jurnal Ekonomi Syari'ah & Bisnis Islam, 10, 17–29. doi:10.54956/eksyar.v10i1.407
Subramaniam, M., & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities. Academy of Management journal, 48(3), 450–463.
Subramony, M., Segers, J., Chadwick, C., & Shyamsunder, A. (2018). Leadership development practice bundles and organizational performance: The mediating role of human capital and social capital. Journal of Business Research, 83, 120–129.
Sunatar, B. (2022). Effect of leadership style and employee competence on employee performance through organizational citizenship behavior. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 5(2), 572–590.
Supriyanto, A., Ekowati, V., & Maghfuroh, U. (2020). Do organizational citizenship behavior and work satisfaction mediate the relationship between spiritual leadership and employee performance? Management Science Letters, 10(5), 1107–1114.
Székely, F., & Knirsch, M. (2005). Responsible leadership and corporate social responsibility:: Metrics for sustainable performance. European Management Journal, 23(6), 628–647.
Taylor, S., & Pearse, N. (2013). Creating sustainable organizations through servant leadership. Leadership and Organizational Change, 215.
Ullah, I., Hameed, R. M., Kayani, N. Z., & Fazal, Y. (2022). CEO ethical leadership and corporate social responsibility: Examining the mediating role of organizational ethical culture and intellectual capital. Journal of Management & Organization, 28(1), 99–119.
Virakul, B., & Russ-Eft, D. F. (2020). A model for business responses to global challenges and sustainable development. Social Responsibility Journal, 16(2), 199–224.
Zada, S., Khan, J., Saeed, I., Jun, Z. Y., Vega-Muñoz, A., & Contreras-Barraza, N. (2022). Servant leadership behavior at workplace and knowledge hoarding: a moderation mediation examination. Frontiers in psychology, 13, 888761.
Zenger, J., Folkman, J., & Edinger, S. K. (2009). How extraordinary leaders double profits. Chief Learning Officer, 8(7), 30–56.
Zhu, W., Chew, I. K., & Spangler, W. D. (2006). Corrigendum to “CEO transformational leadership and organizational outcomes: The mediating role of human-capital-enhancing human resource management”[The Leadership Quarterly 16 (2005) 39-52]. The Leadership Quarterly, 17(3), 316.



