Key Leadership Functions for Achieving Long-Term Competitive Advantage in Business

Effective management of human and social capital in the context of strategic leadership occupies an important place in the development of modern organizations. This article presents a model that includes six key functions of strategic leaders to achieve sustainable competitive advantage. Following the finding presented in the literature review and the gaps that have been identified, this research employs a qualitative survey to identify leadership functions that influence strategic decision-making, organizational growth, innovation, and sustainable competitive positioning. A total of 26 respondents participated in the survey. The answers from the semi-structured interviews provided arguments for defining six key functions of the strategic leaders aiming to create sustainable competitive advantage: strategic decision making, interaction with the external environment, human capital management activities, motivation and influence, information management and social problem management. The findings are found to be strongly supported by previous research. Competitive advantage of companies plays an important role in their successful performance and is determined by the way in which top managers carry out and manage their daily business activities. The findings have theoretical contribution by adding to leadership and strategic management literature by linking leadership functions with long-term competitiveness. The findings and discussions could help executives, policymakers, and HR professionals develop leadership training and development programs. The proposed model could be used for high-level management practices or as a starting point for future studies and discussions on strategic leadership and building sustainable competitive advantage in various industries.