Sustainable Business Practices and Leadership as Catalyst for Employee Innovation in IT Industry

Abstract

In the fast-changing IT sector of today, innovation is essential to deliver competitive edge. Organizations are embracing green business practices to promote long-term growth while embracing leadership strategies that encourage creativity and flexibility in employees. Sustainable leadership, focusing on environmental, social, and ethical responsibility, is at the centre of developing workplace culture and motivating employee innovation. This research analyzes the effect of leadership and sustainable business practices on employee innovation among IT professionals. Based on Structural Equation Modeling of data gathered from 265 IT professionals, the research explains the mediating role of leadership in generating innovation. Transformational leadership and sustainable business practices have a significant effect on employee innovation, according to the findings. Sustainability further increases the effect of leadership, affirming its indirect effect in increasing innovation. Model fit indices verify excellent theoretical fit.  Demographic testing reveals that gender factor has no influence on these relationships, but employees who have been working for more than 10 years are sensitive to sustainable leadership. The study highlights the necessity of incorporating sustainability into leadership strategies in order to promote innovation, and the findings are beneficial to IT companies. Long-term consequences on organizational performance must be analyzed by future research studies.