AbstractSustainable leadership plays a vital role in the integration of sustainable development. Sustainable development, in this context, is related to rapid economic development, poverty alleviation, environmental protection, and increase in social trust. Previous studies emphasized the significance of research in a sustainable mechanism, and its limitations in sustainable leadership and sustainable performance. This study aimed to enlighten managers and policymakers on a range of available opportunities such as poverty alleviation, sustainable education, and community development. Based on an integrated literature review on sustainability in the context of innovation and underlying theories, a conceptual framework on the exploration of sustainable leadership contribution to sustainable performance in the emerging market was outlined. Regarding upper‐echelon theory, it was claimed that sustainable leadership affected sustainable performance through frugal innovation. In addition to the effectuation theory, this study claimed a stronger influence of sustainable leadership on frugal innovation, with high entrepreneurial bricolage. As such, the present research has provided four propositions pending further validation. The propositions have also called for validation for future studies through empirical evidence, specifically in the emerging market. In summary, the theoretical and practical contributions to the impact of sustainable leadership on sustainable performance through frugal innovation have been duly elaborated.