Investigating the Serially Mediating Mechanisms of Organizational Ambidexterity and the Circular Economy in the Relationship between Ambidextrous Leadership and Sustainability Performance

Abstract

In this study, based on a resource-based view, we investigate the influence of ambidextrous leadership (reflected in transformational and transactional leadership styles) on sustainability performance (reflected in economic, environmental, and social performance) through the serially mediating mechanisms of organizational ambidexterity (reflected in explorer and exploiter attributes) and the circular economy (reflected in fields of action). By applying structural equation modelling analyses to survey data collected from private and public Greek organizations, which operate in manufacturing, services, and trade sectors, under an externally dynamic environmental context, we found that (a) organizational ambidexterity and the circular economy fields of action positively mediate the relationship between ambidextrous leadership and sustainability performance and (b) the mechanism originating from transformational leadership has a higher impact on sustainability performance compared to the mechanism that originates from transactional leadership. Accordingly, this study addresses the aspect of the special issue that refers to modern approaches to management and leadership for sustainable business performance research and makes several theoretical and practical implications.