Modeling Sustainable Performance Through Leadership: The Interplay of Engagement and Top Management Support

Abstract

The main objective of the study is to find the influence of different styles of leadership, specifically servant and spiritual leadership, on sustainable performance of small and medium-sized enterprises (SMEs) in Pakistan by taking employee’s engagement as mediator and top management support as a moderator. A total sample size of 503 participants from different SMEs was used to gather data, employing a purposive sampling technique. The results indicate that both servant and spiritual leadership both have a positive and significant impact on sustainable performance. The mediating role of employee’s engagement and moderating role of top management support were found to be significant, highlighting their importance in the overall leadership-performance dynamic. This study enhances the literature by offering evidence on the impact of leadership styles on sustainable performance in the context of Pakistani SMEs. It offers practical understandings for leaders and policymakers on how to harness the potential of servant and spiritual leadership to achieve sustainability. By highlighting the importance of moderator and mediator, the study provides a roadmap for enhancing organizational performance through targeted leadership development and supportive management practices.