Leadership 5.0 and strategic agility: Tourism MSME strategy for sustainable competitiveness

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Abstract

The performance and sustainability of tourism-sector micro, small, and medium-sized enterprises (MSMEs) are key academic concerns due to their significant impact on the national economy and society (Efthimiou, 2025; Esquivias et al., 2022; Silvestre Graça, 2022; Krasniqi & Tahiri, 2025; Nguyen Thi et al., 2024). This study examines the influence of Leadership 5.0 on sustainable competitiveness in tourism-sector MSMEs, with dynamic capability and strategic agility as mediating variables. Using a quantitative approach and survey method, data were collected through questionnaires distributed to MSME owners and managers in Surabaya, with purposive sampling and analysis via partial least squares-structural equation modeling (PLS-SEM). The results show that Leadership 5.0 has a positive and significant impact on dynamic capability, strategic agility, and competitive sustainability. Dynamic capability enhances the ability of MSMEs to manage change and adapt to a dynamic business environment, while strategic agility enables them to respond to market opportunities faster than competitors. Both variables act as mediators in the relationship between Leadership 5.0 and sustainable competitiveness, reinforcing the leadership’s role in long-term competitive advantage. The findings of this study support David Teece’s view that sustainable competitive advantage depends on an organisation’s ability to adapt, integrate, and reshape internal competencies in line with external changes (Teece, 2018).

Keywords: Human Resource Management Strategy, Dynamic Capabilities, Strategic Agility, Competitive Sustainability, Competitive Strategies, Tourism Industry

Authors’ individual contribution: Conceptualization — S., M.Z., P.B.M., and R.R.; Methodology — S. and R.R.; Software — S.; Validation — S., M.Z., P.B.M., and R.R.; Formal Analysis — S. and R.R.; Investigation — S., M.Z., P.B.M., and R.R.; Resources — S., M.Z., P.B.M., and R.R.; Data Curation — S., M.Z., P.B.M., and R.R.; Writing — Original Draft — S.; Writing — Review & Editing — S.; Visualization — S., M.Z., P.B.M., and R.R.; Supervision — S., M.Z., P.B.M., and R.R.; Project Administration — S., M.Z., P.B.M., and R.R.; Funding Acquisition — S., M.Z., P.B.M., and R.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D22, L26, L83, M10, M12, M21, O32

Received: 05.03.2025
Revised: 01.07.2025; 17.07.2025; 06.10.2025
Accepted: 10.11.2025
Published online: 12.11.2025

How to cite this paper: Suhermin, Zahro, M., Mahargiono, P. B., & Rahayu, R. (2025). Leadership 5.0 and strategic agility: Tourism MSME strategy for sustainable competitiveness. Corporate Governance and Sustainability Review, 9(4), 45–54. https://doi.org/10.22495/cgsrv9i4p4