Environmental performance reclaimed: unleashing the power of green transformational leadership and dynamic capability

Abstract

This study examines the mediating role of green innovation in the relationship between green transformational leadership and environmental performance and simultaneously posits green dynamic capability as a pivotal boundary condition. A survey questionnaire was administered to 306 firms. The collected data were analyzed using Amos, and structural equation modelling was employed to test the hypotheses. The findings reveal a significant positive relationship between green transformational leadership and environmental performance. This study also demonstrates that green transformational leadership has an indirect impact on environmental performance through green innovation, and this relationship is anchored by a high level of green dynamic capability. This study demonstrates that green dynamic capability serves as a holistic catalyst that amplifies the impact of green transformational leadership on green innovation and simultaneously catalyzes the translation of green innovation into better environmental performance, ultimately offering fresh insight into environmental management puzzles.

Keywords

• Green transformational leadership
• green innovation
• environmental performance
• green dynamic capability
• manufacturing
• Sandra Alves, Higher Institute of Accounting and Administration, University of Aveiro, Portugal