Sustainable Leadership Activities in SMEs: Can Nonexploitative Exploitation Support Long-Term Orientation?

Small and medium-sized enterprises (SMEs) face unique challenges in managing conflicting demands while striving for long-term sustainability. This study explores the role of ambidextrous leadership in fostering sustainable practices within SMEs, addressing a gap in existing literature. Employing a comparative case study design, data was collected from two SMEs representing contrasting organizational cultures. Analysis revealed distinct leadership approaches and organizational contexts. In one case, a familial identity facilitated open leadership activities, while in the other, a focus on innovation led to top-down control. Both cases demonstrated efforts towards what we call 'Nonexploitative Exploitation,' balancing control and autonomy to promote long-term orientation. The findings underscore the importance of organizational identity in shaping leadership activities and driving sustainable outcomes. While familial identities foster employee loyalty, they slow down adaptability, whereas innovation-focused cultures drive competitiveness but risk employee dissatisfaction. This study contributes via insights into reconciling conflicting demands for exploration and exploitation, empowering SMEs to cultivate supportive environments aligned with long-term objectives, bridging sustainable leadership and ambidexterity.