The Mediating Effects of Green Innovation and Corporate Social Responsibility on the Link between Transformational Leadership and Performance: An Examination Using SEM Analysis

Abstract

Since the inauguration of the United Nations Sustainable Development Goals (UNSDGs), environmental performance and sustainability have become more important to decision makers, scientists and leaders of organizations than before. In response to this, leaders of different organizations spend all endeavors conserving resources and ensuring environmental sustainability. In this context, transformational leaders have the capacity to ensure the green performance of their organization. The purpose of this study is to test the link between green transformational leadership (GTL), green innovation (GI), corporate social responsibility (CSR) and green performance (GP) in the hotel industry in the Kingdom of Saudi Arabia (KSA). The study empirically tests the mediating effect of GI and CSR on the link between GTL and GP. The study used a quantitative research method via a pre-test instrument, self-distributed and collected from employees in large hotels at different regions of the KSA. The findings from 732 valid responses, analyzed with structural equation modeling (SEM) showed that GTL had a significant effect on GI (β = +0.72, t-value = 14.603, p < 0.001), CSR (β = +0.58, t-value = 8.511, p < 0.001) and GP (β = +0.17, t-value = 2.585, p < 0.001). Moreover, GI and CSR had a direct positive effect on GP (β = +0.10, t-value = 2.866, p < 0.01 and β = +0.61, t-value = 4.358, p < 0.001, respectively). GI had a partial mediation effect (p = 0.048 < 0.05) on the link between GTL and GP. On the other hand, CSR had a perfect mediation effect (p = 0.077 > 0.05) on the link between GTL and GP. This reflects the vital part that CSR plays in this relationship, which can be changed based on the status of CSR. In addition, this reflects the value of CSR in achieving GP, which contributes to the achievement of environmental sustainability at a national level (i.e., the Green Saudi Initiative) at a regional level (i.e., the Green Middle East Initiative) and at an international level (i.e., UNSDGs).

Relationship Between Green Innovation and Sustainability and Moderating Role of Foreigners: Evidence from Saudi Listed Companies

“…My findings were affected to some extent by the effects of the Coronavirus pandemic on the companies and the increase in awareness among various parties of the need to raise awareness of future risks. My findings corroborate with those found by Sobaih et al ( 2022 ) in Saudi context by using a green innovation and CSR as mediating variables to prove the effect of sustainability on corporate performance. The same affirmation on SMEs companies in Saudi Arabia is argued by Al Doghan et al ( 2022 ).…”

A mediation-moderation model of transformational leadership and intrinsic work motivation for nurturing employee performance

“…Transformational leadership encourages employees' awareness of the importance and meaning of their work, fosters work creativity, and encourages them to realize organizational goals. In line with previous research, for example, the studies of Sobaih, Gharbi, Hasanein, and Elnasr (2022) and Tosun, Parvez, Bilim, and Yu (2022), transformational leadership inspires and motivates employees to achieve high performance and long-term organizational goals by outlining a clear and inspiring vision for the future as well as providing various necessary support resources.…”

Does green transformational leadership reinforce green creativity? The mediating roles of green organizational culture and green mindfulness

“…This is because studies in the past have shown that transformational leadership is a key factor in the work environment that determines and promotes creativity among the individuals (Mittal and Dhar, 2015). GTL refers to a leadership structure where leader guide employees by inspiring and motivating its employees towards the accomplishment of the organization's environmental vision (Sobaih et al, 2022). According to Chen et al (2014), GTL is described as the leader's behaviour that is intended to give employees a clear vision, support, inspiration and motivation as well as to meet their developmental needs.…”