This study delves into the nuanced impact of leadership styles on state-owned enterprises (SOEs) performance in Northeast China. It aims to discern how transformational, transactional, and authoritative leadership approaches influence organizational outcomes, framed within the context of sustainable leadership theory. Employing a quantitative methodology, the research analyzes survey data from employees across various SOEs to assess the relationship between leadership styles and company performance, including aspects such as job satisfaction, employee motivation, and operational efficiency. The findings reveal a clear dichotomy: transformational and transactional leadership styles positively correlate with improved performance metrics, fostering an environment of innovation, motivation, and job satisfaction. Conversely, authoritative leadership is shown to detrimentally affect these same metrics, potentially hindering organizational growth and employee morale. This research contributes to the broader discourse on leadership and organizational performance by highlighting the critical role of leadership style in enhancing the sustainable development of SOEs, particularly within China’s socio-political and economic fabric. Practical implications suggest a shift towards more adaptive, employee-centered leadership approaches to spur performance and sustainability in SOEs. The originality of this study lies in its specific focus on the Chinese context, offering insights into the leadership dynamics within SOEs and proposing actionable strategies for fostering leadership that align with sustainability and organizational excellence principles.

This paper explores diverse conceptualizations of leadership, emphasizing its profound impact on individuals and organizations. Leadership’s influence on followers’ daily lives, necessitating adaptation to modern complexities. Various theories offer distinct perspectives: distributed leadership emphasizes shared expertise. While charismatic leadership focuses on vision alignment. Authentic leadership promotes ethical climates, while Emotional Intelligence theory emphasizes emotional competencies. Ethical leadership underscores moral conduct. Five Domains Leadership highlights talent management and strategy execution, while Leadership Transition Theory discusses dynamic changes. Other theories include direct/indirect leadership, entrepreneurial leadership, and leader-member exchange. Participative leadership explores decision-making styles, and situational leadership aligns styles with follower maturity. Trait and behavioral theories focus on inherent traits and learned behaviours. This review underscores leadership’s complexity, offering insights into its diverse conceptualizations and practical implications across contexts.