Relational Sustainability Leadership in Sri Lankan Small and Medium-Sized Enterprises

Abstract

This study explores how small and medium enterprises leaders in Sri Lankan apparel and textile sector handle sustainability in organizations through informal, relational leadership practices that differ markedly from formal models prevalent in developed economies. Using a qualitative multiple-case study approach, the research investigates how economic, social, and environmental priorities are balanced in resource-constrained contexts. This study holds particular importance as it addresses a significant gap in understanding how relational leadership enables sustainability in small and medium enterprises within the Sri Lankan apparel and textile industry, offering insights that can inform both theory and practice in similar developing country contexts. The findings reveal that sustainability is enacted not through structured governance or incentives, but through trust, emotional closeness, and moral responsibility embedded in daily interactions. These practices, often viewed as unprofessional in Western models, are shown to be strategic, resilient, and contextually adaptive. The study contributes to the growing call for context-sensitive leadership research by highlighting how relational dynamics enable sustainability under institutional voids and limited resources. It calls for rethinking global leadership standards and recognizing embedded practices in developing country small and medium enterprises.