A Cross-Sector Leadership Framework for Organizational Change and Sustainability: Testing the Impact of Intrinsic Leadership Values Using Structural Equation Modeling

Abstract

Purpose: Leading involves challenging the status quo. A critical function of leadership is to drive change, ensuring both the immediate performance and long-term sustainability of organizations. Design/methodology/approach: Research on leadership, changes, and sustainability has focused predominantly on individual sectors—public, private, or non-profit. Despite the increasing demand for cross-sectoral collaborations, studies that encompass all three sectors—public, private, and non-profit organizations—are relatively scarce. Previous qualitative research has identified five Intrinsic Leadership Values (ILV), each supported by specific characteristics, and developed a unified leadership framework applicable across organizations in public, private, and non-profit sectors. Findings/results: These studies also revealed a universal pattern for managing changes that applies to organizations of all types. To understand the connections between ILV, Organizational Change (OC), Sustainable Change (SC), and Organizational Sustainability (OS), the research developed a framework that was analyzed through case studies. Practical implications: Building on the framework identified through earlier qualitative studies, this research uses a quantitative methodology to examine its generalizability. A purposive sampling survey of 580 respondents, holding managerial positions in public, private, and non-profit organizations in Indonesia, was conducted. Originality/value: Using Structural Equation Modeling (SEM) and Analysis of Moment Structures (AMOS) as analytical tools, this research corroborates previous findings: ILV has a significant impact on OC, which, in turn, enhances OS, while ILV has no influence on SC. It also confirms the reciprocal relationship among these constructs, with ILV serving as the pivotal unifying variable.