Exploring Leadership’s Role in Sustainable Development: The Moderating Impact of Community Involvement in SMEs Across Pakistan, India, and Taiwan

Adil Zareef Khan () and Cheng-Wen Lee
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Adil Zareef Khan: College of Business, Chung Yuan Christian University, 200, Zhongbei Rd, Zhongli Dist., Taoyuan City 320012, Taiwan
Cheng-Wen Lee: College of Business, Chung Yuan Christian University, 200, Zhongbei Rd, Zhongli Dist., Taoyuan City 320012, Taiwan

Sustainability, 2025, vol. 17, issue 16, 1-16

Abstract: This research examines the connection between leadership and sustainable development, emphasizing how community involvement moderates it. It seeks to analyze the impact of leadership styles on sustainable development practices in three distinct cultural and economic contexts: Pakistan, India, and Taiwan. The study participants include managers, entrepreneurs, and consultants. A quantitative research methodology, which included questionnaires and statistical analysis, was used to collect data from business professionals in these three nations. This study considers the viewpoints of both general business leaders and the insights provided by small and medium-sized enterprises, which play a crucial role in driving economic growth in these areas. For example, 99% of Pakistan’s enterprises are small and medium-sized enterprises. However, due to financial constraints, small and medium-sized enterprises face obstacles such as limited innovative capacity. Small and medium-sized enterprises are vital to economic growth in Taiwan and India as well. Small and medium-sized enterprises generate many jobs and contribute substantially to GDP. Effective leadership is critical for promoting sustainability goals, as the findings show that leadership benefits sustainable development projects (H1). Sustainable development outcomes are greatly improved when the community is actively involved (H2), further demonstrating the significance of community involvement as a key component of effective sustainability measures. Contrary to expectations (H3), community involvement did not moderate the relationship between leadership and sustainable development as hypothesized; rather, it appeared as an independent factor that positively influenced sustainability outcomes. The findings highlight the broad relevance of effective leadership practices in various socioeconomic contexts. This study offers valuable insights for policymakers seeking to promote sustainable growth by emphasizing the importance of effective leadership practices and active community engagement within small and medium-sized enterprises.

Keywords: leadership; community involvement; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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