Nenad Vladić, Damjan Maletič, Matjaž Maletič
While previous studies have examined sustainable leadership and innovation separately, limited attention has focused on their systemic interconnection. Building on established frameworks, this study adopts a systems perspective to explain how sustainability-oriented leadership mechanisms shape innovation capability across strategic, organizational, and functional levels. Drawing on a single-case study of an information-rich high-tech company, data were collected through semi-structured interviews and internal documentation to examine leadership practices and organizational enablers that foster innovation. The findings show that sustainable leadership strengthens innovation capability by embedding sustainability values into organizational routines, aligning strategic intent with daily learning, and empowering employees to experiment, collaborate, and share knowledge continuously. These feedback-driven processes connect strategic intent with operational learning, enabling organizations to adapt and renew. The study introduces the Systems Framework for Sustainable Innovation Capability (SFSIC), which explains how leadership, culture, and learning interact as interdependent components of innovation capability and organizational resilience. By framing innovation capability as a dynamic, feedback-driven process rather than a fixed set of determinants, the study advances theory by specifying how sustainability-oriented leadership strengthens adaptive capacity within innovation ecosystems. The study offers guidance for building innovation capability and resilience through aligned leadership practices, enabling structures, and feedback-based learning systems.