Abstract
ABSTRACT Sustainability has emerged as a critical global challenge, compelling industries to integrate environmental considerations into their core strategies. The main objective of this study is to examine the direct influence of green transformational leadership and the mediating roles of green knowledge management and green motivation in achieving a sustainable competitive advantage. Primary data collected from 157 firms belonging to the mining sector are analyzed using the PLS‐SEM technique. The findings reveal that green transformational leadership significantly enhances sustainable competitive advantage, both directly and through the mediating mechanisms of green knowledge management and green motivation, which enable organizations to systematize environmental knowledge, align individual and organizational goals, and foster proactive employee behaviors toward sustainability. It is concluded that leadership practices promoting environmental stewardship are essential in transforming operational frameworks to meet sustainability challenges and achieve a sustainable competitive advantage, leveraging organizational knowledge resources and fostering employee motivation to align the firms' environmental and economic objectives. This research contributes to existing literature by highlighting specific mechanisms through which leadership influences sustainability outcomes, offering actionable insights for policymakers and industry practitioners in environmentally sensitive sectors.