The Impact of Green Transformational Leadership, and Green Human Resource Management on Green Innovation Performance: Moderating Role of Green Organizational Culture.

Abstract

With the current trend of environmental sustainability across the globe, companies are adapting their strategies and prioritizing more towards green innovation. This study investigates the effect of Green Transformational Leadership (GTL) and Green Human Resource Management (GHRM) on Green Innovation Performance (GIP), and studies the moderating effect of Green Organizational Culture (GOC) on these relationships. The research adopts the Natural Resource Based View (NRBV) and the Ability-Motivation-Opportunity (AMO) theory, all in an effort of building a holistic framework to better understand the relationship between the leadership and HR practices to derive eco-friendly outcomes. A structured survey was used to collect data from small and medium size enterprises of Punjab, Pakistan. In this process 316 questionnaires were retained (70.2% response rate). Of these, 316 questionnaires were retained after discarding incomplete and inconsistent responses.  The study tested the relations as shown in the model through Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that GTL and GHRM have high and positive influence on GIP. In addition, GOC has a relevant role in reinforcing the relationships between GTL and GIP, and between GHRM and GIP, so that these positive impacts are more evident in organizations with a strong culture of pro-environment. The model accounts for 64.7% of the variance in the green innovation performance. The findings underscore the importance of a holistic approach where strategic leadership, HR development and a positive culture all work together to improve green innovation results in a green market.