Sustainable Leadership Practices and Competencies of SMEs for Sustainability and Resilience: A Community-Based Social Enterprise Study

Abstract

Current studies on how a sustainability leadership theory can influence the practice of SMEs, such as a context of community-based social enterprises, is still lacking, with scanty research to date. These small enterprises in the bottom of the pyramid settings are indeed the important socio-economic backbone of many nations around the world. The COVID-19 pandemic crisis has significantly hit all sectors and has adversely impacted them. Our study aims to broaden the limited scholarly knowledge and advance the developing SL theory in this realm. Hence, our critical research inquiries address: (1) What are the essential sustainable leadership practices and sustainability competencies for sustainability and resilience in a CBSE context? (2) How can a CBSE business apply the theoretical frameworks in practice to survive and thrive for sustainable futures, especially during the COVID-19 era? This study employs an integrative theoretical examination of sustainable leadership frameworks and sustainability leadership competencies to investigate the sustainable business practices in the SME sector, particularly in a community-based social enterprise context. Our business case centers on a green, social enterprise, which is an award-winner of Best Responsible Tourism and is located in a small coastal fishing village of Thailand. Using a case study research method, the multi-data collection methods include in-depth interviews and focus groups with multiple stakeholders. Evidence was found to comply with six-category sustainable leadership practices and five essential sustainability leadership competencies to varying degrees. The findings suggest that sustainable leaders and entrepreneurs should develop and integrate the value-based practices and competencies (i.e., strategic, systems thinking, interpersonal, anticipatory, ethical competencies) in business. The critical sustainable practices include enabling human capital with care for stakeholders, fostering ethical values and norms via altruism, cultivating social capital through social innovation, and supporting pro-environmental behavior and social responsibility to achieve inclusive growth, sustainability and resilience. The research results advance the theoretical development of the interconnected fields of sustainability leadership and sustainable entrepreneurship. An alternative sustainable business model for sustainability and resilience is also proposed. Overall, the insightful findings can provide practical advice and beneficial policy implications for sustainable futures.