How Does Sustainable Leadership Affect Environmental Innovation Strategy Adoption? The Mediating Role of Environmental Identity

Abstract

This paper uses social identity theory to develop an environmental identity theory and interpret why sustainable leadership can influence environmental identity, which in turn, results in environmental innovation strategy (EIS) adoption. Data were collected from 90 samples of technology manufacturing firms in Taiwan, and a latent growth curve model was employed to analyze the longitudinal data. The research results confirm all hypotheses. Mediating analysis also supports the environmental identity as a mediating role between sustainable leadership and EIS. Indeed, past studies have not explored the mechanism studied in this paper, a novel mechanism which can not only advance the literature on sustainable development but also help companies to realize sustainable development through environmental innovation strategy adoption.