The role of employee motivation in linking sustainable leadership and organizational effectiveness: evidence from higher education institutions in India

Abstract Purpose This study investigates the relationship between sustainable leadership and organizational effectiveness, focusing on the mediating role of employee motivation in higher education institutions (HEIs) in India. It aims to assess how sustainable leadership practices enhance employee motivation and organizational effectiveness within the framework of ability–motivation–opportunity (AMO) theory and resource-based view (RBV). Design/methodology/approach. A quantitative research design was adopted using a structured questionnaire administered to employees of Higher Education Institute of India. In total, 378 valid responses were analyzed. Structural equation modeling (SEM) with Smart PLS 4.0 was used to test the hypothesized relationships, and mediation was examined using bootstrapping techniques. Findings The results indicate that employee motivation partially mediates the relationship between sustainable leadership and organizational effectiveness. The indirect effect of SL on OE through EM was significant, whereas the direct path from SL to OE remained significant. This indicates that sustainable leadership enhances organizational effectiveness directly and indirectly by fostering employee motivation. Originality/value This study extends the existing literature by empirically validating the mediating role of employee motivation in the nexus between sustainable leadership and organizational effectiveness. By integrating AMO theory and RBV, this study provides a novel theoretical framework to explain how sustainable leadership practices drive long-term institutional success in the higher education sector. Practical implications The findings underscore the importance of implementing sustainable leadership practices in HEIs to foster employee motivation and organizational learning. Managers and policymakers in higher education institutions can leverage these insights to streamline and further strengthen institutional capacity, improve performance, and contribute to achieving sustainable development goals (SDGs).