How Managers’ Green Transformational Leadership Affects a Firm’s Environmental Strategy, Green Innovation, and Performance: The Moderating Impact of Differentiation Strategy
Abstract
:1. Introduction
2. Theoretical Framework and Hypotheses
2.1. GTL and CES
2.2. GTL, GPT, and GPI
2.3. CES, GPT, and GPI
2.4. GTL and FP
2.5. CES and FP
2.6. GPI and GPT
2.7. GPT and FP
2.8. GPI and FP
2.9. Moderating Role of Differentiation Strategy
2.10. Mediation Relations
3. Research Methodology
3.1. Sample and Data Collection
3.2. Measure of Constructs
4. Analysis and Results
4.1. Measurement Model Assessment
4.2. Structural Model Assessment
5. Discussion
5.1. Theoretical Implications
5.2. Managerial Implications
5.3. Limitations and Future Studies
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Appendix A. Measurement Items
Green Transformational Leadership | |
GTL1. | Our top management inspires the members of the organization with environmental plans. |
GTL2. | Our top management provides a clear environmental vision for the members of the organization to follow. |
GTl3. | Our top management makes the members of the organization work together for the same environmental goals. |
GTL4. | Our top management encourages the members of the organization to achieve environmental goals. |
GTL5. | Our top management acts by considering the environmental beliefs of the members of the organization. |
GTL6. | Our top management stimulates the members of the organization to think about green ideas. |
Corporate Environmental Strategy | |
CES1. | Our firm has integrated environmental issues into our strategic planning process. |
CES2. | In our firm, “quality” includes reducing our environmental impact. |
CES3. | In our firm, we link environmental objectives with our other corporate goals. |
CES4. | Our firm is engaged in developing products and processes that minimize environmental impact. |
CES5. | Environmental issues are always considered when we develop new products. |
Green Product Innovation | |
GPT1. | Our firm selects the product materials causing the least amount of pollution to conduct a product development or design. |
GPT2. | Our firm selects the product materials consuming the least amount of energy and resources to conduct product development or design. |
GPT3. | Our firm uses the lowest amount of materials to comprise the product for product development or design. |
GPT4. | Our firm would circumspectly deliberate whether the product is easy to recycle, reuse, and decompose for product development or design. |
Green Process Innovation | |
GPI1. | The manufacturing process of our firm effectively reduces the emission of hazardous substances or waste. |
GPI2. | The manufacturing process of our firm recycles waste and emissions, which allows them to be treated and reused. |
GPI3. | The manufacturing process of our firm reduces the consumption of water, electricity, coal, or oil. |
GPI4. | The manufacturing process of our firm reduces the use of raw materials. |
Differentiation Strategy | |
DS1. | In comparison with competing products, our products offer superior benefits to customers. |
DS2. | Our products are unique, and nobody but our company can offer them. |
DS3. | We make great efforts to build a strong brand name, and nobody can easily cope with this. |
DS4. | We successfully differentiate ourselves from others through effective advertising and promotion campaigns. |
Firm Performance | |
FP1. | Our firm performs much better than our competitors in profitability. |
FP2. | Our firm performs much better than our competitors in ROI. |
FP3. | Our firm performs much better than our competitors in cash flow from operations. |
References
- WWF Turkey. 2019. Available online: www.wwf.org.tr (accessed on 23 June 2022).
- Mancini, M.S.; Galli, A.; Niccolucci, V.; Lin, D.; Bastianoni, S.; Wackernagel, M.; Marchettini, N. Ecological Footprint: Refining the Carbon Footprint Calculation. Ecol. Indic. 2016, 61, 390–403. [Google Scholar] [CrossRef]
- Tang, M.; Walsh, G.; Lerner, D.; Fitza, M.A.; Li, Q. Green Innovation, Managerial Concern and Firm Performance: An Empirical Study. Bus. Strategy Environ. 2018, 27, 39–51. [Google Scholar] [CrossRef]
- Begum, S.; Ashfaq, M.; Xia, E.; Awan, U. Does green transformational leadership lead to green innovation? The role of green thinking and creative process engagement. Bus. Strategy Environ. 2021, 31, 580–597. [Google Scholar] [CrossRef]
- Chen, Y.-S.; Lai, S.-B.; Wen, C.-T. The Influence of Green Innovation Performance on Corporate Advantage in Taiwan. J. Bus. Ethics 2006, 67, 331–339. [Google Scholar] [CrossRef]
- Cheng, C.C.J.; Yang, C.-I.; Sheu, C. The Link Between Eco-Innovation and Business Performance: A Taiwanese Industry Context. J. Clean. Prod. 2014, 64, 81–90. [Google Scholar] [CrossRef] [Green Version]
- Barney, J. Firm Resources and Sustained Competitive Advantage. J. Manag. 1991, 17, 99–120. [Google Scholar] [CrossRef]
- Singh, S.K.; Giudice, D.M.; Chierici, R.; Graziano, D. Green Innovation and Environmental Performance: The Role of Green Transformational Leadership and Green Human Resource Management. Technol. Forecast. Soc. Chang. 2020, 150, 119762. [Google Scholar] [CrossRef]
- Egri, C.P.; Herman, S. Leadership in the North American Environmental Sector: Values, Leadership Styles, and Contexts of Environmental Leaders and Their Organizations. Acad. Manag. J. 2000, 43, 571–604. [Google Scholar] [CrossRef]
- Chen, Y.-S.; Chang, C.-H. The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity. J. Bus. Ethics 2013, 116, 107–119. [Google Scholar] [CrossRef]
- Chen, Y.-S.; Chang, C.-H.; Lin, Y.-H. Green Transformational Leadership and Green Performance: The Mediation Effects of Green Mindfulness and Green Self-Efficacy. Sustainability 2014, 6, 6604–6662. [Google Scholar] [CrossRef]
- Liu, X.; Jie, X. Can Manager’s Environmentally Specific Transformational Leadership Improve Environmental Performance? In Proceedings of the Thirteenth International Conference on Management Science and Engineering Management (ICMSEM2019), Ontario, ON, Canada, 5–8 August 2019; 2020; Volume 1002, pp. 730–742. [Google Scholar]
- Hart, S.L. A natural-resource-based view of the firm. Acad. Manag. Rev. 1995, 20, 986–1014. [Google Scholar] [CrossRef] [Green Version]
- Begum, S.; Xia, E.; Ali, F.; Awan, U.; Ashfaq, M. Achieving green product and process innovation through green leadership and creative engagement in manufacturing. J. Manuf. Technol. Manag. 2022, 33, 656–674. [Google Scholar] [CrossRef]
- Soewarno, N.; Tjahjadi, B.; Fithrianti, F. Green Innovation Strategy and Green Innovation: The Roles of Green Organizational Identity and Environmental Organizational Legitimacy. Manag. Decis. 2019, 57, 3061–3078. [Google Scholar] [CrossRef]
- Hart, S.L.; Dowell, G. A Natural-Resource-Based View of The Firm: Fifteen Years After. J. Manag. 2011, 37, 1464–1497. [Google Scholar]
- Huang, S.; Ting, C.-W.; Li, M.-W. The effects of green transformational leadership on adoption of environmentally proactive strategies: The mediating role of green engagement. Sustainability 2021, 13, 3366. [Google Scholar] [CrossRef]
- Bahzar, M. Effects of Green Transformational and Ethical Leadership on Green Creativity, Eco-Innovation and Energy Efficiency in Higher Education Sector of Indonesia. Int. J. Energy Econ. Policy 2019, 9, 408–414. [Google Scholar] [CrossRef]
- Zhang, D.; Rong, Z.; Ji, Q. Green Innovation and firm Performance: Evidence from Listed Companies in China. Resour. Conserv. Recycl. 2019, 144, 48–55. [Google Scholar] [CrossRef]
- Stucki, T. Which Firms Benefit from Investments In Green Energy Technologies?–The Effect of Energy Costs. Res. Policy 2019, 48, 546–555. [Google Scholar] [CrossRef]
- Palmer, K.; Oates, W.E.; Portney, P.R. Tight Ending Environmental Standards: The Benefit-Cost or the No-Cost Paradigm? J. Econ. Perspect. 1995, 9, 119–132. [Google Scholar] [CrossRef]
- Dangelico, R.M.; Pontrandolfo, P. Being “Green and Competitive”: The Impact of Environmental Actions and Collaborations on Firm Performance. Bus. Strategy Environ. 2015, 24, 413–430. [Google Scholar] [CrossRef]
- Huang, J.W.; Li, Y.H. Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity. J. Bus. Ethics 2017, 145, 309–324. [Google Scholar] [CrossRef]
- Xie, X.; Huo, J.; Zou, H. Green Process Innovation, Green Product Innovation, and Corporate Financial Performance: A Content Analysis Method. J. Bus. Res. 2019, 101, 697–706. [Google Scholar] [CrossRef]
- Zhang, Y.; Jun, S.; Yang, Z.; Li, S. Organizational Learning and Green Innovation: Does Environmental Proactivity Matter? Sustainability 2018, 10, 3737. [Google Scholar] [CrossRef] [Green Version]
- Li, D.; Zheng, M.; Cao, C.; Chen, X.; Ren, S.; Huang, M. The Impact of Legitimacy Pressure and Corporate Profitability on Green Innovation: Evidence from China Top 100. J. Clean. Prod. 2017, 141, 41–49. [Google Scholar] [CrossRef] [Green Version]
- Damanpour, F.; Walker, R.M.; Avellaneda, C.N. Combinative Effects of Innovation Types And Organizational Performance: A Longitudinal Study of Service Organizations. J. Manag. Stud. 2009, 46, 650–675. [Google Scholar] [CrossRef]
- Wang, C.-H. How organizational green culture influences green performance and competitive advantage The mediating role of green innovation. J. Manuf. Technol. Manag. 2019, 30, 666–683. [Google Scholar] [CrossRef]
- Nanath, K.; Pillai, R.R. The Influence of Green IS Practices on Competitive Advantage: Mediation Role of Green Innovation Performance. Inf. Syst. Manag. 2017, 34, 3–19. [Google Scholar] [CrossRef]
- El-Kassar, A.N.; Singh, S.K. Green Innovation and Organizational Performance: The Influence of Big Data and the Moderating Role of Management Commitment and HR Practices. Technol. Forecast. Soc. Chang. 2018, 144, 483–498. [Google Scholar] [CrossRef]
- McWilliams, A.; Siegel, D.S. Creating and Capturing Value: Strategic Corporate Social Responsibility, Resource-Based Theory, and Sustainable Competitive Advantage. J. Manag. 2011, 37, 1480–1495. [Google Scholar] [CrossRef]
- Yang, X.; Sun, S.L.; Yang, H. Market-Based Reforms, Synchronization, and Product Innovation. Ind. Mark. Manag. 2015, 50, 30–39. [Google Scholar] [CrossRef]
- Porter, M.E. Competitive Strategy; Free Press: New York, NY, USA, 1980. [Google Scholar]
- James, S.D.; Leiblein, M.J.; Lu, S. How Firms Capture Value from Their Innovations. J. Manag. 2013, 39, 1123–1155. [Google Scholar]
- Latan, H.; Jabbour, C.J.C.; Jabbour, A.B.L.S.; Wamba, S.F.; Shahbaz, M. Effects of Environmental Strategy, Environmental Uncertainty and Top Management’s Commitment on Corporate Environmental Performance: The Role of Environmental Management Accounting. J. Clean. Prod. 2018, 180, 297–306. [Google Scholar] [CrossRef]
- Sharma, S. Managerial Interpretations and Organizational Context as Predictors of Corporate Choice of Environmental Strategy. Acad. Manag. J. 2000, 43, 681–697. [Google Scholar] [CrossRef]
- Bass, B.M.; Avolio, B.J.; Jung, D.I.; Berson, Y. Predicting Unit Performance by Assessing Transformational and Transactional Leadership. J. Appl. Psychol. 2003, 88, 207–218. [Google Scholar] [CrossRef] [Green Version]
- Sharin, F.H.; Hanafi, M.I.M.; Ahmad, W.A.A.W. Proactive Environmental Strategy and Environmental Performance: The Role of Green Transformational Leadership. Solid State Technol. 2020, 63, 3346. [Google Scholar]
- Noori, H.; Chen, C. Applying Scenario-Driven Strategy to Integrate Environmental Management and Product Design. Prod. Oper. Manag. 2003, 12, 353–368. [Google Scholar] [CrossRef]
- Jyoti, J.; Dev, M. The Impact of Transformational Leadership on Employee Creativity: The Role of Learning Orientation. J. Asia Bus. Stud. 2015, 9, 78–98. [Google Scholar] [CrossRef]
- Le, P.-B.; Lei, H. The mediating role of trust in stimulating the relationship between transformational leadership and knowledge sharing processes. J. Knowl. Manag. 2018, 22, 521–537. [Google Scholar] [CrossRef]
- Sun, X.; Askary, A.-E.; Meo, M.-S.; Zafar, N.-A.; Hussain, B. Green transformational leadership and environmental performance in small and medium enterprises. Econ. Res.-Ekon. Istraživanja 2022, 35, 5273–5291. [Google Scholar] [CrossRef]
- Wahba, H. Does the Market Value Corporate Environmental Responsibility? An Empirical Examination. Corp. Soc. Responsib. Environ. Manag. 2008, 15, 89–99. [Google Scholar] [CrossRef]
- Tsai, K.; Liao, Y. Sustainability Strategy and Eco-Innovation: A Moderation Model. Bus. Strategy Environ. 2017, 26, 426–437. [Google Scholar] [CrossRef]
- Wijethilake, C. Proactive Sustainability Strategy and Corporate Sustainability Performance: The Mediating Effect of Sustainability Control Systems. J. Environ. Manag. 2017, 196, 569–582. [Google Scholar] [CrossRef] [PubMed]
- Ryszko, A. Inter-Organizational Cooperation, Knowledge Sharing, and Technological Eco-Innovation: The Role of Proactive Environmental Strategy—Empirical Evidence from Poland. Pol. J. Environ. Stud. 2016, 25, 753–764. [Google Scholar] [CrossRef] [PubMed]
- Song, W.; Yu, H. Green Innovation Strategy and Green Innovation: The Roles of Green Creativity and Green Organizational Identity. Corp. Soc. Responsib. Environ. Manag. 2018, 25, 135–150. [Google Scholar] [CrossRef]
- Dansereau, F.; Cho, J.; Yammarino, F.J. Avoiding the “Fallacy of the Wrong Level”: A within and between Analysis (WABA) Approach. Group Organ. Manag. 2006, 31, 536–577. [Google Scholar] [CrossRef]
- Lim, B.; Ployhart, R.E. Transformational Leadership: Relations to the Five-Factor Model and Team Performance in Typical and Maximum Contexts. J. Appl. Psychol. 2004, 89, 610–621. [Google Scholar] [CrossRef]
- Waldman, D.A.; Yammarino, F.J. CEO charismatic leadership: Levels of Management and Levels-of-Analysis Effects. Acad. Manag. Rev. 1999, 24, 266–285. [Google Scholar] [CrossRef]
- Colbert, A.E.; Kristof-Brown, A.; Bradley, B.H.; Barrick, M.R. CEO Transformational Leadership: The Role of Goal Importance Congruence in Top Management Teams. Acad. Manag. J. 2008, 51, 81–96. [Google Scholar] [CrossRef] [Green Version]
- Jung, D.I.; Chow, C.; Wu, A. The Role of Transformational Leadership in Enhancing Organizational Innovation: Hypotheses and Some Preliminary Findings. Leadersh. Q. 2003, 14, 525–544. [Google Scholar] [CrossRef]
- Kim, M.; Stepchenkova, S. Does Environmental Leadership Affect Market and Eco Performance? Evidence from Korean Franchise Firms. J. Bus. Ind. Mark. 2018, 33, 417–428. [Google Scholar] [CrossRef]
- Yu, Y.; Huo, B. The Impact of Environmental Orientation on Supplier Green Management and Financial Performance: The Moderating Role of Relational Capital. J. Clean. Prod. 2019, 211, 628–639. [Google Scholar] [CrossRef]
- Aguilera-Caracuel, J.; Ortiz-de-Mandojana, N. Green innovation and financial performance: An institutional approach. Organ. Environ. 2013, 26, 365–385. [Google Scholar] [CrossRef]
- Ates, M.A.; Bloemhof, J.; Van Raaij, E.M.; Wynstra, F. Proactive Environmental Strategy in A Supply Chain Context: The Mediating Role of Investments. Int. J. Prod. Res. 2012, 50, 1079–1095. [Google Scholar] [CrossRef]
- Wei, Z.; Shen, H.; Zhou, K.Z.; Julie, J.L. How Does Environmental Corporate Social Responsibility Matter in A Dysfunctional Institutional Environment? Evidence from China. J. Bus. Ethics 2017, 140, 209–223. [Google Scholar] [CrossRef]
- Hoffman, A.J. Competitive Environmental Strategy; Island Press: Washington, DC, USA, 2000. [Google Scholar]
- Dai, J.; Cantor, D.E.; Montabon, F.L. Examining Corporate Environmental Proactivity and Operational Performance: A Strategy-Structure-Capabilities performance Perspective Within A Green Context. Int. J. Prod. Econ. 2017, 193, 272–280. [Google Scholar] [CrossRef]
- Peng, B.; Tu, Y.; Elahi, E.; Wei, G. Extended Producer Responsibility and Corporate Performance: Effects of Environmental Regulation and Environmental Strategy. J. Environ. Manag. 2018, 218, 181–189. [Google Scholar] [CrossRef]
- Brulhart, F.; Gherra, S.; Quelin, B.V. Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability? J. Bus. Ethics 2019, 158, 25–46. [Google Scholar] [CrossRef]
- Calle, F.; González-Moreno, Á.; Carrasco, I.; Vargas-Vargas, M. Social Economy, Environmental Proactivity, Eco-Innovation and Performance in the Spanish Wine Sector. Sustainability 2020, 12, 5908. [Google Scholar] [CrossRef]
- Jacobs, B.W.; Singhal, V.R.; Subramanian, R. An Empirical Investigation of Environmental Performance and the Market Value of the Firm. J. Oper. Manag. 2010, 28, 430–441. [Google Scholar] [CrossRef]
- Walker, K.; Wan, F. The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications. J. Bus. Ethics 2012, 109, 227–242. [Google Scholar] [CrossRef] [Green Version]
- Torugsa, N.; O’Donohue, W.; Hecker, R. Proactive Corporate Social Responsibility: Understanding the Role of Its Economic, Social and Environmental Dimensions on the Association Between Capabilities and Performance. J. Bus. Ethics 2013, 115, 383–402. [Google Scholar] [CrossRef] [Green Version]
- Christmann, P. Effects of ‘Best Practices’ of Environmental Management on Cost Advantage: The Role of Complementary Assets. Acad. Manag. J. 2000, 43, 663–680. [Google Scholar] [CrossRef]
- Bigliardi, B.; IvoDormio, A. An Empirical Investigation of Innovation Determinants in Food Machinery Enterprises. Eur. J. Innov. Manag. 2009, 12, 223–242. [Google Scholar] [CrossRef]
- Damanpour, F. An Integration of Research Findings of Effects of Firm Size and Market Competition on Product and Process Innovations. Br. J. Manag. 2010, 21, 996–1010. [Google Scholar] [CrossRef]
- Ma, Y.; Hou, G.; Xin, B. Green Process Innovation and Innovation Benefit: The Mediating Effect of Firm Image. Sustainability 2017, 9, 1778. [Google Scholar] [CrossRef] [Green Version]
- Mantovani, A. Complementarity between Product and Process Innovation in A Monopoly Setting. Econ. Innov. New Technol. 2006, 15, 219–234. [Google Scholar] [CrossRef]
- Doran, J.; Ryan, G. Regulation and Firm Perception, Eco-Innovation and Firm Performance. Eur. J. Innov. Manag. 2012, 15, 421–441. [Google Scholar] [CrossRef] [Green Version]
- Przychodzen, J.; Przychodzen, W. Relationships Between Eco-Innovation and Financial Performance—Evidence from Publicly Traded Companies in Poland and Hungary. J. Clean. Prod. 2014, 90, 253–263. [Google Scholar] [CrossRef]
- Li, Y. Environmental Innovation Practices and Performance: Moderating Effect of Resource Commitment. J. Clean. Prod. 2014, 66, 450–458. [Google Scholar] [CrossRef]
- Trumpp, C.; Guenther, T. Too Little or Too Much? Exploring U-Shaped Relationships Between Corporate Environmental Performance and Corporate Financial Performance. Bus. Strategy Environ. 2015, 26, 49–68. [Google Scholar] [CrossRef]
- Testa, M.; D’Amato, A. Corporate Environmental Responsibility and Financial Performance: Does Bidirectional Causality Work? Empirical Evidence from The Manufacturing Industry. Soc. Responsib. J. 2017, 13, 221–234. [Google Scholar] [CrossRef]
- Tariq, A.; Badir, Y.; Chonglerttham, S. Green Innovation and Performance: Moderation Analyses from Thailand. Eur. J. Innov. Manag. 2019, 22, 446–467. [Google Scholar] [CrossRef]
- Amores-Salvadó, J.; Martin-de Castro, G.; Navas-lópez, J. Green Corporate Image: Moderating the Connection Between Environmental Product Innovation and Firm Performance. J. Clean. Prod. 2014, 83, 356–365. [Google Scholar] [CrossRef]
- Dangelico, R.M.; Pujari, D. Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability. J. Bus. Ethics 2010, 95, 471–486. [Google Scholar] [CrossRef]
- Lin, R.-J.; Tan, K.-H.; Geng, Y. Market Demand, Green Product Innovation, and Firm Performance: Evidence from Vietnam Motor Cycle Industry. J. Clean. Prod. 2013, 40, 101–107. [Google Scholar] [CrossRef]
- Ambec, S.; Lanoie, P. Does It Pay to Be Green? A Systematic Overview. Acad. Manag. Perspect. 2008, 22, 45–62. [Google Scholar]
- Darnall, N. Regulatory Stringency, Green Production Offsets, and Organization’s Financial Performance. Public Adm. Rev. 2009, 69, 418–434. [Google Scholar] [CrossRef]
- Porter, M.E.; van der Linde, C. Toward A New Conception of the Environment Competitiveness Relationship. J. Econ. Perspect. 1995, 9, 97–118. [Google Scholar] [CrossRef] [Green Version]
- Xie, X.; Huo, J.; Qi, G.; Zhu, K.X. Green Process Innovation and Financial Performance in Emerging Economies: Moderating Effects of Absorptive Capacity and Green Subsidies. IEEE Trans. Eng. Manag. 2016, 63, 101–112. [Google Scholar] [CrossRef]
- Adams, R.; Jeanrenaud, S.; Bessant, J.; Denyer, D.; Overy, P. Sustainability-Oriented Innovation: A systematic review. Int. J. Manag. Rev. 2016, 18, 180–205. [Google Scholar] [CrossRef] [Green Version]
- Chen, Y.-S. The Driver of Green Innovation and Green Image—Green Core Competence. J. Bus. Ethics 2008, 81, 531–543. [Google Scholar] [CrossRef]
- Michaud, C.; Llerena, D. Green Consumer Behaviour: An Experimental Analysis of Willingness to Pay for Remanufactured Products. Bus. Strategy Environ. 2011, 20, 408–420. [Google Scholar] [CrossRef]
- Frambach, R.T.; Prabhu, J.; Verhallen, T.M.M. The Influence of Business Strategy on New Product Activity: The Role of Market Orientation. Int. J. Res. Mark. 2003, 20, 377–397. [Google Scholar] [CrossRef] [Green Version]
- Chen, J.; Liu, L. Profiting from Green Innovation: The Moderating Effect of Competitive Strategy. Sustainability 2019, 11, 15. [Google Scholar] [CrossRef]
- Karahanna, E.; Preston, D.S. The Effect of Social Capital of The Relationship between the CIO and Top Management Team on Firm Performance. J. Manag. Inf. Syst. 2013, 30, 15–56. [Google Scholar] [CrossRef]
- Li, C.B.; Li, J.J. Achieving Superior Financial Performance in China: Differentiation, Cost Leadership, or Both? J. Int. Mark. 2008, 16, 1–22. [Google Scholar] [CrossRef]
- Seggie, S.H.; Kim, D.; Cavusgil, S.T. Do Supply Chain IT Alignment and Supply Chain Interfirm System Integration Impact Upon Brand Equity and Firm Performance? J. Bus. Res. 2006, 59, 887–895. [Google Scholar] [CrossRef]
- Dijkstra, T.K.; Henseler, J. Consistent Partial Least Squares Path Modeling. Manag. Inf. Syst. Q. 2015, 39, 297–316. [Google Scholar] [CrossRef]
- Henseler, J.; Hubona, G.; Ray, P.A. Using PLS Path Modeling in New Technology Research: Updated Guidelines. Ind. Manag. Data Syst. 2016, 116, 1–19. [Google Scholar] [CrossRef]
- Hair, J.F.; Risher, J.J.; Sarstedt, M.; Ringle, C.M. When to Use and How to Report the Results of PLS-SEM. Eur. Bus. Rev. 2019, 31, 2–24. [Google Scholar] [CrossRef]
- Zhao, X.; Lynch, J.G.; Chen, Q. Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis. J. Consum. Res. 2010, 37, 197–206. [Google Scholar] [CrossRef]
- Liu, J.; Yuan, Y.; Zhang, J. Environmental leadership in organizations: A literature review and prospects. Econ. Manag. J. 2018, 40, 193–208. [Google Scholar]
- Bhatia, M.-S. Green process innovation and operational performance: The role of proactive environment strategy, technological capabilities, and organizational learning. Bus. Strategy Environ. 2021, 30, 2845–2857. [Google Scholar] [CrossRef]
- Awan, U.; Nauman, S.; Sroufe, R. Exploring the effect of buyer engagement on green product innovation: Empirical evidence from manufacturers. Bus. Strategy Environ. 2021, 30, 463–477. [Google Scholar] [CrossRef]
- Banerjee, S.J. Corporate Environmentalism the Construct and Its Measurement. J. Bus. Res. 2002, 55, 177–191. [Google Scholar] [CrossRef]
- Wu, T.; Wu, Y.-C.J.; Chen, Y.J.; Goh, M. Aligning Supply Chain Strategy with Corporate Environmental Strategy: A Contingency Approach. Int. J. Prod. Econ. 2014, 147, 220–229. [Google Scholar] [CrossRef]
- Feng, T.; Zhao, G.; Su, K. The fit between environmental management systems and organisational learning orientation. Int. J. Prod. Res. 2014, 52, 2901–2914. [Google Scholar] [CrossRef]
- Anders’en, J. A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms. Technovation 2021, 104, 102254. [Google Scholar] [CrossRef]
- Tseng, M.-L.; Wang, R.; Chiu, A.S.F.; Geng, Y.; Lin, Y.H. Improving Performance of Green Innovation Practices Under Uncertainty. J. Clean. Prod. 2013, 40, 71–82. [Google Scholar] [CrossRef]
- Lee, K.-H.; Cin, B.C.; Lee, E.Y. Environmental Responsibility and Firm Performance: The Application of An Environmental, Social and Governance Model. Bus. Strategy Environ. 2016, 26, 40–53. [Google Scholar] [CrossRef]
- Cop, S.; Olorunsol, V.-O.; Alola, U.-V. Achieving environmental sustainability through green transformational leadership policy: Can green team resilience help? Bus. Strategy Environ. 2020, 30, 671–682. [Google Scholar] [CrossRef]
- Li, S.; Qiao, J.; Cui, H.; Wang, S. Realizing the Environmental Benefits of Proactive Environmental Strategy: The Roles of Green Supply Chain Integration and Relational Capability. Sustainability 2020, 12, 2907. [Google Scholar] [CrossRef]
Latent Variable | Indicators | Factor Loadings | Cronbach’s Alpha | rho_A | Composite Reliability | AVE |
---|---|---|---|---|---|---|
Green Transformational Leadership (GTL) | GTL1 | 0.871 | 0.950 | 0.951 | 0.960 | 0.802 |
GTL2 | 0.908 | |||||
GTL3 | 0.909 | |||||
GTL4 | 0.904 | |||||
GTL5 | 0.907 | |||||
GTL6 | 0.872 | |||||
Differentiation Strategy (DS) | DS1 | 0.864 | 0.917 | 0.937 | 0.941 | 0.799 |
DS2 | 0.893 | |||||
DS3 | 0.895 | |||||
DS4 | 0.922 | |||||
Corporate Environmental Strategy (CES) | CES1 | 0.791 | 0.864 | 0.867 | 0.902 | 0.648 |
CES2 | 0.778 | |||||
CES3 | 0.841 | |||||
CES4 | 0.853 | |||||
CES5 | 0.758 | |||||
Green Product Innovation (GPT) | GPT1 | 0.842 | 0.901 | 0.904 | 0.931 | 0.772 |
GPT2 | 0.897 | |||||
GPT3 | 0.886 | |||||
GPT4 | 0.888 | |||||
Green Process Innovation (GPI) | GPI1 | 0.821 | 0.839 | 0.840 | 0.892 | 0.675 |
GPI2 | 0.845 | |||||
GPI3 | 0.813 | |||||
GPI4 | 0.806 | |||||
Financial Performance (FP) | FP1 | 0.900 | 0.845 | 0.847 | 0.906 | 0.763 |
FP2 | 0.858 | |||||
FP3 | 0.863 | |||||
Moderating Effect 1 (DS-GPT) | DS1×GPT1 | 0.833 | 0.957 | 1.000 | 0.958 | 0.588 |
DS1×GPT2 | 0.856 | |||||
DS1×GPT3 | 0.699 | |||||
DS1×GPT4 | 0.761 | |||||
DS2×GPT1 | 0.849 | |||||
DS2×GPT2 | 0.845 | |||||
DS2×GPT3 | 0.717 | |||||
DS2×GPT4 | 0.777 | |||||
DS3×GPT1 | 0.815 | |||||
DS3×GPT2 | 0.793 | |||||
DS3×GPT3 | 0.660 | |||||
DS3×GPT4 | 0.757 | |||||
DS4×GPT1 | 0.799 | |||||
DS4×GPT2 | 0.802 | |||||
DS4×GPT3 | 0.649 | |||||
DS4×GPT4 | 0.738 |
Latent Variable | Mean | S.D. | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
---|---|---|---|---|---|---|---|---|---|
Differentiation Strategy | 5.282 | 0.928 | 0.894 | ||||||
Financial Performance | 5.829 | 0.701 | 0.384 | 0.874 | |||||
Corporate Environmental Strategy | 6.248 | 0.564 | 0.263 | 0.597 | 0.805 | ||||
Moderating Effect 1 (DS×GPT) | - | - | 0.031 | 0.151 | 0.030 | 0.767 | |||
Green Transformational Leadership | 5.894 | 0.708 | 0.242 | 0.697 | 0.707 | 0.086 | 0.895 | ||
Green Process Innovation | 6.139 | 0.708 | 0.273 | 0.592 | 0.521 | 0.040 | 0.618 | 0.821 | |
Green Product Innovation | 5.965 | 0.531 | 0.245 | 0.445 | 0.530 | −0.087 | 0.517 | 0.452 | 0.879 |
SRMR = 0.061; NFI = 0.845; GoF = 0.671 |
Latent Variable | HTML | ||||||
---|---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 | |
Differentiation Strategy | |||||||
Financial Performance | 0.429 | ||||||
Corporate Environmental Strategy | 0.290 | 0.696 | |||||
Moderating | 0.063 | 0.135 | 0.073 | ||||
Green Transformational Leadership | 0.254 | 0.777 | 0.779 | 0.074 | |||
Green Process Innovation | 0.303 | 0.701 | 0.606 | 0.067 | 0.690 | ||
Green Product Innovation | 0.267 | 0.507 | 0.599 | 0.104 | 0.555 | 0.517 |
Structural Path | Coeff. (β) | S.D. | t-Values | p-Values | Adj. R2 | f2 | Q2 | VIF | Conclusion |
---|---|---|---|---|---|---|---|---|---|
GTL→CES | 0.707 *** | 0.032 | 22.177 | 0.000 | 0.500 | 1.001 | 0.322 | 1.000 | H1 Supported |
GTL→GPT | 0.197 ** | 0.066 | 3.035 | 0.003 | 0.340 | 0.024 | 0.255 | 2.414 | H2a Supported |
CES→GPT | 0.300 *** | 0.069 | 4.409 | 0.000 | 0.067 | 2.047 | H3a Supported | ||
GPI→GPT | 0.175 ** | 0.057 | 3.135 | 0.002 | 0.028 | 1.655 | H6 Supported | ||
GTL→GPI | 0.500 *** | 0.058 | 8.506 | 0.000 | 0.396 | 0.207 | 0.263 | 2.001 | H2b Supported |
CES→GPI | 0.167 ** | 0.063 | 2.645 | 0.008 | 0.023 | 2.001 | H3b Supported | ||
GTL→FP | 0.407 *** | 0.057 | 7.014 | 0.000 | 0.584 | 0.158 | 0.435 | 2.504 | H4 Supported |
CES→FP | 0.134 * | 0.052 | 2.552 | 0.010 | 0.020 | 2.200 | H5 Supported | ||
GPT→FP | 0.038 | 0.043 | 0.893 | 0.367 | 0.002 | 1.563 | H7a Not Supported | ||
GPI→FP | 0.199 *** | 0.050 | 3.981 | 0.000 | 0.055 | 1.730 | H7b Supported | ||
Moderating Effect (DS×GPT→FP) | 0.100 * | 0.046 | 2.191 | 0.028 | 0.024 | 1.033 | H8 Supported | ||
SRMR = 0.061; NFI = 0.845; GoF = 0.671 |
Structural Path | Coeff. (β) | S.D. | t-Values | p-Values | Confidence Interval (BC) LL UL | Conclusion | |
---|---|---|---|---|---|---|---|
GTL→CES→FP | 0.095 * | 0.037 | 2.543 | 0.010 | 0.021 | 0.169 | H9 Supported Complementary Partial Mediation |
GTL→GPT→FP | 0.008 | 0.009 | 0.844 | 0.399 | −0.007 | 0.031 | H10b Not Supported |
GTL→FP | 0.407 *** | 0.057 | 7.014 | 0.000 | |||
GTL→GPI→FP | 0.100 *** | 0.028 | 3.528 | 0.000 | 0.050 | 0.160 | H10a Supported Complementary Partial Mediation |
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Share and Cite
Özgül, B.; Zehir, C. How Managers’ Green Transformational Leadership Affects a Firm’s Environmental Strategy, Green Innovation, and Performance: The Moderating Impact of Differentiation Strategy. Sustainability 2023, 15, 3597. https://doi.org/10.3390/su15043597
Özgül B, Zehir C. How Managers’ Green Transformational Leadership Affects a Firm’s Environmental Strategy, Green Innovation, and Performance: The Moderating Impact of Differentiation Strategy. Sustainability. 2023; 15(4):3597. https://doi.org/10.3390/su15043597
Chicago/Turabian StyleÖzgül, Burcu, and Cemal Zehir. 2023. "How Managers’ Green Transformational Leadership Affects a Firm’s Environmental Strategy, Green Innovation, and Performance: The Moderating Impact of Differentiation Strategy" Sustainability 15, no. 4: 3597. https://doi.org/10.3390/su15043597