Strategic Management and Leadership Practices for Enhancing Employee Performance and Organizational Sustainability

Abstract Organizations are increasingly expected to deliver strong employee performance while simultaneously achieving long-term organizational sustainability (economic, social, and environmental). This narrative review synthesizes ScienceDirect-indexed scholarship on how strategic management choices and leadership practices shape employee outcomes (e.g., task performance, engagement, citizenship behavior) and sustainability outcomes (e.g., sustainable performance, green behavior, sustainability strategy execution). Drawing on evidence from corporate sustainability strategy and integration research, sustainable/green HRM, high-performance work systems (HPWS), and leadership-for-sustainability literature, the review highlights three core pathways: (1) strategic integration of sustainability into corporate strategy and governance; (2) people systems (sustainable HRM, green HRM, HPWS) that build ability–motivation–opportunity and supportive climates; and (3) leadership mechanisms (transformational, responsible, and sustainability-oriented leadership) that strengthen identification, engagement, justice, and values alignment. Across the literature, the strongest and most consistent evidence supports “bundle” approaches—coherent strategy + aligned HR systems + leadership behaviors—rather than isolated initiatives. Key gaps include inconsistent sustainability-performance measurement, limited longitudinal and multi-level designs, and underrepresentation of developing-country public-sector settings. Practical implications emphasize embedding sustainability into strategic planning, aligning incentives and HR architecture, building leadership capability, and using climate/engagement metrics to manage implementation. Keywords: strategic management; leadership; employee performance; sustainable HRM; green HRM; high-performance work systems; corporate sustainability strategy; organizational climate; sustainable performance.