Unpacking the Green Leadership-Environmental Performance Link: The Role of Innovation, GHRM and Environmental Values

Authors

  • Dr. Ghulam Murtaza Lahbar
  • Sibghat Ullah
  • Azzah Khadim Hussain
  • Dr. Athar Marwat

DOI:

https://doi.org/10.62843/jssr.v5i1.475

Keywords:

Leadership, Values, Innovation, Performance, GHRM

Abstract

The paper investigates connections among green transformational leadership-GTL, environmental performance-EP association along GHRM (Green Human Resource Management) and, Green Innovation-GI as mediating factors. It explores environmental values' moderating role among GTL and EP. Using structural equation modeling, 15 SMEs were surveyed, and 110 data points were collected from individuals. Results indicate that GTL contributes significantly to EP. Additionally, the mediation analysis confirms that GTL and EP are positively mediated by GHRM and GI. It is also highlighted that EV has a moderating effect on GTL/EP relationships. A sustainable business culture can be fostered by utilizing these insights.

References

Aftab, J., Abid, N., Cucari, N., & Savastano, M. (2023). Green human resource management and environmental performance: The role of green innovation and environmental strategy in a developing country. Business Strategy and the Environment, 32(4), 1782–1798. https://doi.org/10.1002/bse.3219

Aggarwal, P., & Agarwala, T. (2022). Relationship of green human resource management with environmental performance: mediating effect of green organizational culture. Benchmarking An International Journal. https://doi.org/10.1108/bij-08-2021-0474

Amjad, F., Abbas, W., Zia-Ur-Rehman, M., Baig, S. A., Hashim, M., Khan, A., & Rehman, H.-U.-. (2021). Effect of green human resource management practices on organizational sustainability: the mediating role of environmental and employee performance. Environmental Science and Pollution Research International, 28(22), 28191–28206. https://doi.org/10.1007/s11356-020-11307-9

Arici, H. E., & Uysal, M. (2022). Leadership, green innovation, and green creativity: a systematic review. Service Industries Journal, 42(5–6), 280–320. https://doi.org/10.1080/02642069.2021.1964482

Aslam, B., Gul, S., & Asghar, M. F. (2021). Evaluation of environmental degradation as an unprecedented threat to human security in Pakistan. Liberal Arts and Social Sciences International Journal (LASSIJ), 5(1), 197–211. https://doi.org/10.47264/idea.lassij/5.1.14

Begum, S., Ashfaq, M., Xia, E., & Awan, U. (2022). Does green transformational leadership lead to green innovation? The role of green thinking and creative process engagement. Business Strategy and the Environment, 31(1), 580–597. https://doi.org/10.1002/bse.2911

Bhatti, S. H., Zakariya, R., Vrontis, D., Santoro, G., & Christofi, M. (2021). High-performance work systems, innovation and knowledge sharing: An empirical analysis in the context of project-based organizations. The International Journal, 43(2), 438–458.

Cao, S., Nie, L., Sun, H., Sun, W., & Taghizadeh-Hesary, F. (2021). Digital finance, green technological innovation and energy-environmental performance: Evidence from China’s regional economies. Journal of Cleaner Production, 327(129458), 129458. https://doi.org/10.1016/j.jclepro.2021.129458

Chen, Y.-S., & Chang, C.-H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of Business Ethics, 116(1), 107–119. https://doi.org/10.1007/s10551-012-1452-x

Chowdhury, S. R., Mendy, J., & Rahman, M. (2023). A systematic literature review of GHRM: organizational sustainable performance reimagined using a new holistic framework. Sustainability, 15(9), 7513. https://doi.org/10.3390/su15097513

Eitan, T., & Gazit, T. (2024). Explaining transformational leadership in the digital age: The example of Facebook group leaders. Technology in Society, 78, 102637. https://doi.org/10.1016/j.techsoc.2024.102637

El Nemar, S., El-Chaarani, H., Dandachi, I., & Castellano, S. (2022). Resource-based view and sustainable advantage: a framework for SMEs. Journal of Strategic Marketing, 1–24. https://doi.org/10.1080/0965254x.2022.2160486

Farrukh, M., Ansari, N., Raza, A., Wu, Y., & Wang, H. (2022). Fostering employee’s pro-environmental behavior through green transformational leadership, green human resource management and environmental knowledge. Technological Forecasting and Social Change, 179(121643), 121643. https://doi.org/10.1016/j.techfore.2022.121643

Gachira, J. N., & Ntara, C. (2024). Effect of Transformational Leadership on Organisational Performance of Top 100 SMEs in Nairobi, Kenya. Kenya. Journal of Human Resource & Leadership, 8(2), 82–99.

Guan, J. (2020). How Organizations Respond to the Coexistence of Legitimation and Stigmatization in an Environment: The Case of Shadow Education Industry in China (Doctoral dissertation, Concordia University).

Hameed, Z., Naeem, R. M., Hassan, M., Naeem, M., Nazim, M., & Maqbool, A. (2022). How GHRM is related to green creativity? A moderated mediation model of green transformational leadership and green perceived organizational support. International Journal of Manpower, 43(3), 595–613. https://doi.org/10.1108/ijm-05-2020-0244

Huang, Y., Chen, C., Lei, L., & Zhang, Y. (2022). Impacts of green finance on green innovation: A spatial and nonlinear perspective. Journal of Cleaner Production, 365(132548), 132548. https://doi.org/10.1016/j.jclepro.2022.132548

Ikram, M., Ferasso, M., Sroufe, R., & Zhang, Q. (2021). Assessing green technology indicators for cleaner production and sustainable investments in a developing country context. Journal of Cleaner Production, 322(129090), 129090. https://doi.org/10.1016/j.jclepro.2021.129090

Javaid, M., Haleem, A., Singh, R. P., Suman, R., & Gonzalez, E. S. (2022). Understanding the adoption of Industry 4.0 technologies in improving environmental sustainability. Sustainable Operations and Computers, 3, 203–217. https://doi.org/10.1016/j.susoc.2022.01.008

Jayaraman, K., Jayashree, S., & Dorasamy, M. (2023). The effects of green innovations in organizations: influence of stakeholders. Sustainability, 15(2), 1133. https://doi.org/10.3390/su15021133

Khan, K. S., Hussain, A. K., Shoaib, M., Tahir, M. A., & Marwat, A. (2025). Metaverse and Modern Business: A Bibliometric View on Marketing, Management, HR, and Finance. Bulletin of Management Review, 2(1), 198–225.

Lee, P., Kleinman, G., & Anandarajan, A. (2024). The effect of tournament incentives on environmental, social, and governance (ESG) performance. International Journal of Disclosure and Governance, 1–12.

Maitlo, Q., Wang, X., Jingdong, Y., Lashari, I. A., Faraz, N. A., & Hajaro, N. H. (2022). Exploring green creativity: The effects of green transformational leadership, green innovation climate, and green autonomy. Frontiers in Psychology, 13, 686373. https://doi.org/10.3389/fpsyg.2022.686373

Makhloufi, L., Laghouag, A. A., Meirun, T., & Belaid, F. (2022). Impact of green entrepreneurship orientation on environmental performance: The natural resource‐based view and environmental policy perspective. Business Strategy and the Environment, 31(1), 425–444. https://doi.org/10.1002/bse.2902

Mansoor, A., Jahan, S., & Riaz, M. (2021). Does green intellectual capital spur corporate environmental performance through green workforce? Journal of Intellectual Capital, 22(5), 823–839. https://doi.org/10.1108/jic-06-2020-0181

Memon, S. B., Rasli, A., Dahri, A. S., & Hermilinda Abas, I. (2022). Importance of top management commitment to organizational citizenship behaviour towards the environment, green training and environmental performance in Pakistani industries. Sustainability, 14(17), 11059. https://doi.org/10.3390/su141711059

Muisyo, P., Su, Q., Ho, T. H., Julius, M. M., & Usmani, M. S. (2022). Implications of green HRM on the firm’s green competitive advantage: the mediating role of enablers of green culture. Journal of Manufacturing Technology Management, 33(2), 308–333. https://doi.org/10.1108/jmtm-01-2021-0033

Negt, P., & Haunschild, A. (2024). Exploring the gap between research and practice in human resource management (HRM): a scoping review and agenda for future research. Management Review Quarterly, 1-43.

NF, N., & Arulrajah, A. A. (2023). Impact of Green Transformational Leadership on Green Performance and Mediating Role of Green Mindfulness: A Study on the Banking Sector in Sri Lanka. IUP Journal of Bank Management, 22(4).

Niazi, U. I., Nisar, Q. A., Nasir, N., Naz, S., Haider, S., & Khan, W. (2023). Green HRM, green innovation and environmental performance: the role of green transformational leadership and green corporate social responsibility. Environmental Science and Pollution Research International, 30(15), 45353–45368. https://doi.org/10.1007/s11356-023-25442-6

Odeyemi, O., Usman, F. O., Mhlongo, N. Z., Elufioye, O. A., & Ike, C. U. (2023). Sustainable entrepreneurship: A review of green business practices and environmental impact. World Journal of Advanced Research and Reviews, 21(2), 346–358. https://doi.org/10.30574/wjarr.2024.21.2.0461

Özgül, B., & Zehir, C. (2023). How managers’ green transformational leadership affects a firm’s environmental strategy, green innovation, and performance: the moderating impact of differentiation strategy. Sustainability, 15(4), 3597.

Padilla-Lozano, C. P., & Collazzo, P. (2022). Corporate social responsibility, green innovation and competitiveness–causality in manufacturing. Competitiveness Review: An International Business Journal, 32(7), 21-39.

Raza, S. A., & Khan, K. A. (2022). Impact of green human resource practices on hotel environmental performance: the moderating effect of environmental knowledge and individual green values. International Journal of Contemporary Hospitality Management, 34(6), 2154-2175. https://doi.org/10.1108/IJCHM-05-2021-0553

Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163(120481), 120481. https://doi.org/10.1016/j.techfore.2020.120481

Rusyani, E., Lavuri, R., & Gunardi, A. (2021). Purchasing Eco-sustainable products: Interrelationship between environmental knowledge, environmental concern, green attitude, and perceived behavior. Sustainability, 13(9), 4601. https://doi.org/10.3390/su13094601

Singh, S. K., Giudice, M. D., Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting and Social Change, 150(119762), 119762. https://doi.org/10.1016/j.techfore.2019.119762

Sugiarno, Y., & Novita, D. (2022). Resources-based view (RBV) as a strategy of company competitive advantage: a literature review. Paper presented at the International Conference On Economics Business Management And Accounting (ICOEMA).

Tu, Y., & Wu, W. (2021). How does green innovation improve enterprises’ competitive advantage? The role of organizational learning. Sustainable Production and Consumption, 26, 504–516. https://doi.org/10.1016/j.spc.2020.12.031

Ullah, A., Waqar, M., Nazir, S. S., Adnan, A., Khan, M. A., Raffat, M. W., & Rafi, S. (2024). The impact of information communication technology and financial innovation on the financial performance of Chinese commercial banks. Remittances Review, 9, 364–383. https://doi.org/10.1108/JSTP-06-2024-0182

Younis, Z., & Hussain, S. (2023). Green transformational leadership: bridging the gap between green HRM practices and environmental performance through green psychological climate. Sustainable Futures, 6, 100140. https://doi.org/10.1016/j.sftr.2023.100140

Downloads

Published

2025-03-12

Issue

Section

Articles

How to Cite

Unpacking the Green Leadership-Environmental Performance Link: The Role of Innovation, GHRM and Environmental Values. (2025). Journal of Social Sciences Review, 5(1), 137-149. https://doi.org/10.62843/jssr.v5i1.475