An Empirical Study on the Role of Authentic Leadership in Strategic Agile Operations, Organizational Sustainability, and Business Performance

Abstract

Achieving organizational agility, both strategically and operationally, has become necessary for businesses to maintain competitiveness through effective value co-creation and sustainability initiatives. This requires unwavering and continuous support from management, coupled with effective leadership. In this empirical survey study, we investigate the role of authentic leadership in strategic agile operations (SAO) and sustainability. Based on authentic leadership theory (ALT) and literature on SAO and sustainability, our research explores the intricate relationships among SAO, authentic leadership, organizational sustainability (OS), and business performance (BP). Our empirical findings indicate that in SAO, authentic leadership can exert a positive influence on enhancing sustainability and business performance. Moreover, the study reveals that authentic leadership plays a mediating role in the relationship between SAO and sustainability. The findings underscore the importance of leadership integrity and operational adaptability in navigating complex business environments and achieving sustainable success and, ultimately, business performance.