Indigenous Leadership and Entrepreneurial Capability Development: A Capability Perspective on Leadership Development and Sustainable Human Resource Architecture
DOI:
https://doi.org/10.66635/wk9srs92Keywords:
Indian Knowledge System, Leadership, Sustainable Human Resource Development, Entrepreneurship, Innovation, Knowledge-Based ViewAbstract
Human resource development requires more than ethical intent to be sustainable; it depends on institutional architecture that supports long-term capability formation. Although value-based leadership research often assumes that morally grounded leaders directly create sustainable organisational systems, the mechanisms through which leadership philosophy translates into structured HR sustainability remain underexplored. At the same time, entrepreneurship research highlights that sustainable venture performance, innovation, and firm growth depend on the development of underlying organisational capabilities rather than leadership intent alone, yet the integration between leadership capability and entrepreneurial outcomes remains underexplored. Drawing on the Resource-Based View and Knowledge-Based View, this study conceptualises Indian Knowledge System-inspired Leadership Practices (IKSLP) as a higher-order leadership capability encompassing ethical stewardship, service orientation, spiritual purpose, and reflective self-regulation. Using survey data from 250 managers and Partial Least Squares Structural Equation Modelling, the study examines whether IKSLP influences Sustainable Human Resource Development (SHRD) directly or through Leadership Development Effectiveness (LDE). The model is further conceptually extended to link sustainable HR capability with entrepreneurial outcomes such as innovation, firm performance, and long-term venture sustainability. The findings reveal full mediation: IKSLP significantly influences LDE, LDE significantly influences SHRD, and the direct effect of IKSLP on SHRD is not significant. From an entrepreneurship perspective, the findings suggest that entrepreneurial success emerges through institutionalised capability-building systems supporting innovation, adaptability, and scalable growth, particularly in SME and emerging economy contexts.
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