IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i13p6109-d1694289.html
   My bibliography  Save this article

Ethical Entrepreneurial Leadership and Corporate Sustainable Development: A Resource-Based View of Competitive Advantage in Small and Medium Enterprises

Author

Listed:
  • Thabit Atobishi

    (Health Information Management and Technology Department, King Faisal University, Hufof 36362, Saudi Arabia)

  • Szilard Podruzsik

    (HUN-REN Centre for Economic and Regional Studies, 1097 Budapest, Hungary)

Abstract

This study investigates the relationships between entrepreneurial leadership skills (ELSs), ethical entrepreneurial leadership (EEL), corporate sustainable development (CSD), and competitive advantage (CA) in SMEs. Drawing on resource-based view theory, we examine whether entrepreneurial capabilities and ethical practices jointly contribute to sustainability and competitive positioning. Data from 312 SME leaders across manufacturing, services, technology, and trading sectors were analyzed using PLS-SEM. Results reveal that ELSs foster EEL (β = 0.684, p < 0.001) and enhance CSD (β = 0.453, p < 0.001). EEL significantly affects CSD (β = 0.527, p < 0.001) and partially mediates the relationship between entrepreneurial skills and sustainability (indirect effect = 0.361). CSD strongly enhances CA (β = 0.612, p < 0.001). The findings demonstrate that integrating entrepreneurial capabilities with ethical leadership creates foundations for sustainable development and CA in resource-constrained environments. This research extends entrepreneurial leadership theory by showing complementarity between entrepreneurial and ethical orientations, advances sustainability theory by revealing ethical leadership’s mediating role, and enriches RBV by demonstrating how intangible leadership capabilities generate CA when traditional resources are scarce. Practical implications include developing integrated leadership programs and sustainability frameworks for emerging economy SMEs.

Suggested Citation

  • Thabit Atobishi & Szilard Podruzsik, 2025. "Ethical Entrepreneurial Leadership and Corporate Sustainable Development: A Resource-Based View of Competitive Advantage in Small and Medium Enterprises," Sustainability, MDPI, vol. 17(13), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:13:p:6109-:d:1694289
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/13/6109/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/13/6109/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hassan Nor-Aishah & Noor Hazlina Ahmad & Ramayah Thurasamy, 2020. "Entrepreneurial Leadership and Sustainable Performance of Manufacturing SMEs in Malaysia: The Contingent Role of Entrepreneurial Bricolage," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    2. Khodor Shatila & Nirjhar Nigam & Sondes Mbarek, 2024. "Seeds of Change: Nurturing Entrepreneurial Ecosystems for Sustainable Enterprises in Lebanon and Jordan," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 33(4), pages 897-924, November.
    3. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    4. Solomon Abekah Keelson & Juraj Cúg & John Amoah & Zora Petráková & Jacob Odei Addo & Abdul Bashiru Jibril, 2024. "The Influence of Market Competition on SMEs’ Performance in Emerging Economies: Does Process Innovation Moderate the Relationship?," Economies, MDPI, vol. 12(11), pages 1-20, October.
    5. Maher Al-Mahrouq, 2010. "Success Factors of Small and Medium Enterprises: The Case of Jordan," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 13(2), pages 89-106, November.
    6. Brown, Michael E. & Trevino, Linda K. & Harrison, David A., 2005. "Ethical leadership: A social learning perspective for construct development and testing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(2), pages 117-134, July.
    7. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    8. Dima Jamali & Ramez Mirshak, 2007. "Corporate Social Responsibility (CSR): Theory and Practice in a Developing Country Context," Journal of Business Ethics, Springer, vol. 72(3), pages 243-262, May.
    9. Scott L. Newbert, 2008. "Value, rareness, competitive advantage, and performance: a conceptual‐level empirical investigation of the resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 745-768, July.
    10. Maher Al-Mahrouq, 2010. "SUCCESS FACTORS OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs): THE CASE OF JORDAN," Anadolu University Journal of Social Sciences, Anadolu University, vol. 10(1), pages 1-16, January.
    11. Kansu Ercantan & Şerife Z. Eyupoglu & Özlem Ercantan, 2024. "The Entrepreneurial Leadership, Innovative Behaviour, and Competitive Advantage Relationship in Manufacturing Companies: A Key to Manufactural Development and Sustainable Business," Sustainability, MDPI, vol. 16(6), pages 1-18, March.
    12. Vaghely, Ivan P. & Julien, Pierre-André, 2010. "Are opportunities recognized or constructed?: An information perspective on entrepreneurial opportunity identification," Journal of Business Venturing, Elsevier, vol. 25(1), pages 73-86, January.
    13. Sen Sendjaya & James C. Sarros & Joseph C. Santora, 2008. "Defining and Measuring Servant Leadership Behaviour in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 45(2), pages 402-424, March.
    14. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    15. Zhu, Jin & Zhi, Wenyuan & Fang, Yuanhan, 2025. "Ethical leadership, organizational learning, and corporate ESG performance: A moderated mediation model," International Review of Economics & Finance, Elsevier, vol. 98(C).
    16. Gupta, Vipin & MacMillan, Ian C. & Surie, Gita, 2004. "Entrepreneurial leadership: developing and measuring a cross-cultural construct," Journal of Business Venturing, Elsevier, vol. 19(2), pages 241-260, March.
    17. Ali Saleh Alshebami, 2025. "Crisis Management and Customer Adaptation: Pathways to Adaptive Capacity and Resilience in Micro- and Small-Sized Enterprises," Sustainability, MDPI, vol. 17(9), pages 1-19, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claudio Vitari & Elisabetta Raguseo, 2016. "Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data," Post-Print halshs-01923271, HAL.
    2. Xiaoming He & Yaqun Yi & Zelong Wei, 2019. "New product development capabilities in China: the moderating role of TMT cooperative behavior," Asian Business & Management, Palgrave Macmillan, vol. 18(2), pages 73-97, April.
    3. Marvello Yang & Norizan Jaafar & Abdullah Al Mamun & Anas A. Salameh & Noorshella Che Nawi, 2022. "Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-28, December.
    4. Alexandrina Maria Pauceanu & Nada Rabie & Ayman Moustafa & Daniel Constantin Jiroveanu, 2021. "Entrepreneurial Leadership and Sustainable Development—A Systematic Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    5. Iyer, Karthik N.S. & Srivastava, Prashant & Srinivasan, Mahesh, 2019. "Performance implications of lean in supply chains: Exploring the role of learning orientation and relational resources," International Journal of Production Economics, Elsevier, vol. 216(C), pages 94-104.
    6. Abel D Alonso, 2019. "Resources, competitiveness, and socioeconomic development: The case of a South American emerging economy," Local Economy, London South Bank University, vol. 34(1), pages 68-87, February.
    7. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2022. "Exploring the black box of competitive advantage – An integrated bibliometric and chronological literature review approach," Journal of Business Research, Elsevier, vol. 139(C), pages 964-982.
    8. Francisco Antunes & Leandro F. Pereira & Álvaro L. Dias & Rui Vinhas Silva, 2023. "Flexible labour policies as competitive advantage," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(4), pages 563-590, December.
    9. M. à ngeles López-Cabarcos & Sérgio Göttling-Oliveira-Monteiro & Paula Vázquez-Rodríguez, 2015. "Organizational Capabilities and Profitability," SAGE Open, , vol. 5(4), pages 21582440156, November.
    10. Rifat Kamasak, PhD, 2014. "Another Attempt to look inside the “Black Box†of Performance Creation: A Case Study Approach," International Journal of Business and Social Research, LAR Center Press, vol. 4(7), pages 1-16, July.
    11. Omar Rabeea Mahdi & Islam A. Nassar, 2021. "The Business Model of Sustainable Competitive Advantage through Strategic Leadership Capabilities and Knowledge Management Processes to Overcome COVID-19 Pandemic," Sustainability, MDPI, vol. 13(17), pages 1-27, September.
    12. Zsuzsanna Vincze & Linda Hällerstrand & Daniel Örtqvist & Lena Rist, 2021. "Strategic Corporate Sustainability in a Post-Acquisition Context," Sustainability, MDPI, vol. 13(11), pages 1-29, May.
    13. Philip Hallinger, 2021. "A Meta-Synthesis of Bibliometric Reviews of Research on Managing for Sustainability, 1982–2019," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    14. Zhang, Yucheng & Hou, Zhongwei & Yang, Feifei & Yang, Miles M. & Wang, Zhiling, 2021. "Discovering the evolution of resource-based theory: Science mapping based on bibliometric analysis," Journal of Business Research, Elsevier, vol. 137(C), pages 500-516.
    15. Peter E. Harland & Zakir Uddin & Sven Laudien, 2020. "Product platforms as a lever of competitive advantage on a company-wide level: a resource management perspective," Review of Managerial Science, Springer, vol. 14(1), pages 137-158, February.
    16. Bruno Michel Roman Pais Seles & Janaina Mascarenhas & Ana Beatriz Lopes de Sousa Jabbour & Adriana Hoffman Trevisan, 2022. "Smoothing the circular economy transition: The role of resources and capabilities enablers," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1814-1837, May.
    17. Arie Y Lewin & Silvia Massini & Carine Peeters, 2020. "Absorptive capacity, socially enabling mechanisms, and the role of learning from trial and error experiments: A tribute to Dan Levinthal’s contribution to international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1568-1579, December.
    18. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    19. Ahmad Ibrahim Aljumah & Mohammed T. Nuseir & Md. Mahmudul Alam, 2021. "Traditional marketing analytics, big data analytics and big data system quality and the success of new product development," Post-Print hal-03538161, HAL.
    20. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:13:p:6109-:d:1694289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.