FROM RESOURCES TO RESULTS: THE ROLE OF SUSTAINABILITY PRACTICES IN TRANSLATING RESOURCE CAPACITY AND ETHICAL LEADERSHIP INTO ENTREPRENEURIAL PERFORMANCE
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In sustainability-oriented markets, entrepreneurs must transform internal resources and ethics-based leadership into performance, yet the mediating role of sustainability practices is left quantitatively unclear. This study investigates, under the resource-based view and ethical leadership framework, whether sustainability practices mediate the effects of resource capacity and ethical leadership on entrepreneurial performance. Cross-sectional survey data were collected from 400 entrepreneurs and small business owners in Bangladesh (industry and collection period unspecified) using a Likert-scale questionnaire; analysis used structural equation modeling in SmartPLS 4 and SPSS 25, with reliability and validity testing, bootstrapped path estimation, and mediation analysis; confidence intervals were unspecified. Measurement quality met thresholds (indicator loadings 0.864-0.940; Cronbach's alpha 0.908-0.939; composite reliability 0.935-0.956; AVE 0.783-0.845; SRMR 0.041; NFI 0.918; chi-square 432.343). Discriminant validity was acceptable (HTMT 0.045-0.312), and collinearity was within thresholds (VIF 2.367-4.729). The model explained 12.6% of the variance in entrepreneurial performance (R2=0.126; adjusted R2=0.119) and 3.1% of the variance in sustainability practices (R2=0.031; adjusted R2=0.026). Resource capacity had a positive direct association with entrepreneurial performance (beta=0.176, t=3.532, p<0.001, f2=0.034) and with sustainability practices (beta=0.157, t=3.138, p=0.002, f2=0.025). Ethical leadership was positively related to performance (beta=0.106, t=2.179, p=0.029, f2=0.012) but not to sustainability practices (beta=0.078, t=1.391, p=0.164, f2=0.006). Sustainability practices showed the largest direct association with performance (β = 0.256, t = 5.395, p < 0.001, f2 = 0.072). The indirect effect of resource capacity on sustainability practices was significant (β = 0.040, t = 2.637, p = 0.008). In contrast, the analogous indirect effect from ethical leadership was not significant (β = 0.020, t = 1.299, p = 0.194), yielding a quantitative pattern in which mediation was limited to the resource-capacity pathway overall.
JEL Classification Codes: L26, Q56, M14.
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