The Influence of Strategic Leadership, Operational Agility, and Innovation Capability on Sustainable Performance in Manufacturing Companies

Abstract

This study aims to examine the influence of strategic leadership, operational agility, and innovation capability on sustainable performance within manufacturing companies. The research explores how these three factors contribute to the long-term sustainability of manufacturing firms in an increasingly competitive and dynamic market. Using a quantitative approach, data was collected through survey questionnaires from manufacturing firms in Pakistan. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between the variables. The findings reveal that all three independent variables—strategic leadership, operational agility, and innovation capability—have significant positive impacts on sustainable performance. Strategic leadership was found to guide organizations toward aligning their long-term vision with sustainability goals, while innovation capability encourages continuous improvement in processes and products. The study highlights the importance of integrating strategic leadership, operational flexibility, and innovation to enhance sustainable performance. These findings have important implications for business leaders and policymakers, emphasizing the need for sustainable practices within the manufacturing sector to maintain a competitive advantage and long-term growth.