Transformational leadership and sustainable performance of local government

Purpose This study aims to investigate the role of transformational leadership in the sustainable performance of local public administration by examining how transformational leaders influence the achievement of environmental, social, and governance (ESG) objectives within Portuguese local government entities. Design/methodology/approach The sample includes a panel of 211 respondents who work in government entities in Portugal through the application of structural equation modelling (SEM). This approach enables the simultaneous examination of both the direct effects of transformational leadership on sustainable performance and the indirect effects mediated by corporate social responsibility and organizational politics. Findings The results demonstrate that transformational leadership positively influences both corporate social responsibility (CSR) and sustainable performance, but the hypothesized indirect/mediating effect of CSR was not statistically supported. Conversely, organizational politics neither significantly affects sustainable performance nor mediates the relationship between transformational leadership and sustainable performance. Originality/value The empirical insights provided by this study offer important insights for public managers and policymakers interested in promoting sustainable governance practices in local governments Beyond their practical implications, the results offer an original contribution to the public administration literature by extending transformational leadership research to the context of local government, an institutional setting that has received comparatively limited empirical attention.