Linking agile leadership and business sustainability through the mediation of political and social capabilities

Abstract

Organizations are known to have interactions with both market and nonmarket environments. In the nonmarket environment setting, organizations deploy a strategy related to the political/legal and social changes affecting the organizations and how to deal with the changes through agile leadership to attain sustainability. This research objective is to understand the influence of agile leadership in achieving business sustainability by using political and social capabilities as mediators. Leaders’ behaviors and leadership styles are crucial triggers for dynamic capabilities (i.e., political and social capabilities) which aimed to achieve Business Sustainability. This study uses the Partial Least Squares-Structural Equation Modeling (PLS-SEM) method involving 75 listed companies from the Indonesia Stock Exchange. The research findings discovered that agile leadership plays a significant role in developing political and social capability in an organization; however, only through political capability does such role significantly affects business sustainability.