Influence of leadership on the adoption of circular and digital business models using PLS-SEM analysis

In a business environment characterised by growing pressure towards sustainability and digital transformation, leadership emerges as a determining factor in the adoption of sustainable, technology-driven business models. This study analyses how leadership influences the adoption of circular business models and the integration of artificial intelligence (AI) in companies in Metropolitan Lima. Using a quantitative approach, a questionnaire was administered to a sample of 146 companies, and partial least squares structural equation modelling (PLS-SEM) was used to process the data using Smart PLS software. The findings show that leadership, understood as the ability to mobilise the organisation towards strategic change objectives, promotes the adoption of circular practices. Likewise, leadership drives the integration of AI-based solutions by promoting adaptability and openness to digital transformation. The study concludes that the ability of leaders to make sound decisions, inspire a shared vision and manage resistance to change is crucial to transforming traditional business models towards more resilient, circular and digitised approaches.