Driving Corporate Sustainability in Colombian Medium-Sized Enterprises: The Roles of Governance, Innovation, Commitment, and Entrepreneurial Orientation

Abstract

This study examines how dimensions of organisational leadership are associated with corporate sustainability in Colombian medium-sized enterprises. Grounded in stakeholder theory, the research employed multi-stage psychometric design and partial least squares structural equation modelling. A total of 475 responses were collected from managers in 12 medium-sized enterprises in Antioquia, Colombia; after data screening and removal of outlier cases, 457 valid observations were retained for analysis. The findings show that commitment showed the strongest positive relationship with corporate sustainability, followed by innovation and entrepreneurial orientation, whereas governance showed a positive but non-significant relationship. The model explained 40% of the variance in corporate sustainability. These results indicate that sustainability outcomes depend more strongly on leadership dimensions that mobilize organisational action than on formal governance mechanisms alone. From a managerial perspective, firms should strengthen leadership commitment, innovation capabilities, and entrepreneurial behaviour while maintaining appropriate governance structures. From a policy perspective, support programs should complement regulatory and governance requirements with initiatives that build managerial capabilities, encourage innovation, and promote proactive sustainability practices. The study provides novel evidence from an under-represented Latin American context and offers insights applicable to sustainability management and policy decisions in comparable enterprises in other emerging economies.