Responsible Leadership and Sustainable Development in East Asia Economic Group: Application of Social Exchange Theory

Abstract

This study aimed to investigate the integrated relationship of responsible leadership, knowledge sharing, and sustainable performance, drawing from social exchange theory. Data from 264 employees of manufacturing firms in China were collected using online survey forms, exhibiting a response rate of 52.80 percent. Subsequently, the partial least square-structural equation modelling (PLS-SEM) was applied to examine responsible leadership’s direct and indirect effect on sustainable performance. Current empirical evidence revealed that responsible leaders influence sustainable performance significantly among these firms. Moreover, knowledge sharing has partially mediated the link between responsible leadership-sustainable performance. Overall, the present study contributed to the responsible leadership theory and enriched the literature on sustainable development, where it was found that responsible leaders play a critical role in the latter. Policymakers and practitioners in organisations should take the initiative in fostering specific leadership training and knowledge sharing activities. Accordingly, several recommendations were suggested to policymakers, in which strong leadership is considered the primary role behind several organisational aspects. These aspects include success, knowledge, and information, encouraging sustainable development goals.