“Adapting to thrive”: SME entrepreneurial leadership for corporate sustainability—A case from Sri Lanka

Abstract

This study explores how entrepreneurial leadership shapes corporate sustainability practices in small and medium-sized enterprises (SMEs) within resource-constrained environments in developing economies. Adopting a qualitative single-case study design grounded in social constructivism, the research draws on data collected through six in-depth interviews, supplemented by nonparticipant observations and internal document analysis. Findings show that SME leaders blend transactional and ambidextrous–exploitative leadership styles to balance economic, social, and environmental goals. Rather than relying on resource-intensive innovation, leaders adopt cost-efficient, compliance-aligned strategies grounded in moral and relational obligations. This study expands entrepreneurial leadership theory by showing how hybrid leadership serves as a practical response to sustainability challenges in developing economies. It also provides useful guidance for aligning sustainability with both operational needs and institutional expectations.