Abstract

By applying the concepts from Resource Based View (RBV) and Knowledge-Based View (KBV), this endeavor aims to determine the influence of Sustainable Leadership (SusL) on Sustainable Performance (SusP). The study further ascertains the mediating role of Absorptive Capacity (AbsC) and Sustainable Project Management (SuPM) in this relationship. We utilized Partial Least Squares - Structural Equation Modeling to substantiate the direct and mediating effects on the data gathered from employees working in Small and Medium-sized Enterprises (SMEs) firms. The result indicated that SusL significantly impacts SusP while AbsC and SuPM mediate this relationship. This research stands out for its originality in two important aspects. First, it takes a multidisciplinary approach by drawing RBV and KBV, enriching the study's theoretical foundations. Second, it delves into the mediating roles of AbsC and SuPM, providing a deeper understanding of how SusL influences SusP. In a nutshell, this research’s originality lies in its multidisciplinary approach, nuanced exploration of mediating factors, SME focus, and empirical validation, making it a valuable contribution to the study of sustainable leadership and performance in contemporary business settings.