**4. Research Results**

The mean, standard deviation, and correlation coefficient of each variable are shown in Table 6. The results of the correlation analysis indicate a significant positive relationship between transformational leadership and ESG performance, with a correlation coefficient value of 0.593, which is greater than 0. In addition, there is a significant positive relationship between external social capital and organizational innovation, with a correlation coefficient value of 0.367, which is greater than 0. There is a positive relationship between transformational leadership and external social capital, with a correlation coefficient of 0.351, which is greater than 0. Finally, there is a significant positive relationship between organizational

innovation and ESG performance, with correlation coefficient values of 0.519, which is greater than 0.


**Table 6.** Means, standard deviations, and correlation coefficients of variables.

Note: N = 350, \*\* is *p* < 0.01, two-tailed test.

In order to test the proposed hypotheses, this study conducted a multiple linear regression of the variables of interest using SPSS 26.0 software to test the research model while controlling for years in business, firm ownership, firm industry, and firm size (see Table 7). Table 7 shows that control variables are not statistically significant for organizational innovation and ESG performance. Transformational leadership positively affects ESG performance (b = 0.421, *p* < 0.001), and H1 is supported. Transformational leadership has a significant positive effect on organizational innovation (b = 0.288, *p* < 0.001), indicating that H2 is supported. Organizational innovation has a significant positive effect on ESG performance (b = 0.304, *p* < 0.001); thus, H3 is supported. In addition, as shown in Table 8, the bootstrap test indicates that this mediating effect is statistically significant, with a mediating effect value of 0.116, 95% CI = [0.079, 0.157], excluding 0; thus, H4 is supported.

**Table 7.** Results of regression analysis.


Note: N = 350, \*\* is *p* < 0.01.

**Table 8.** Decomposition of the total, direct, and indirect effect (Bootstrap = 5000).


The results indicate that external social capital significantly positively affects organizational innovation (b = 0.258, *p* < 0.001). There is a significant impact of the interaction term between transformational leadership and external social capital on ESG performance (b = 0.215, *p* < 0.001). The slope of the simple analysis indicates (see Figure 2) that when external social capital is low, the effect of transformational leadership on ESG performance is insignificant (b = 0.096, *p* = 0.184). The effect of transformational leadership on ESG

performance is more significant when the external social capital is high (b = 0.479, *p* < 0.001), and H5 is supported.

**Figure 2.** The moderating role of external social capital in the relationship between transformational leadership and organizational innovation.

According to Table 9, the analysis of moderated mediated effects reveals that when the external social capital is low, the indirect relationship between transformational leadership and ESG performance via organizational innovation is 0.029, 95% CI = [−0.018, 0.076]. When the external social capital is high, the indirect relationship between transformational leadership and ESG performance via organizational innovation is 0.146, 95% CI = [0.098, 0.200], and there is a significant difference in the indirect effect at both high and low levels, with a difference of 0.117, 95% CI = [0.028, 0.108]. Hence, H6 is supported.


**Table 9.** Results of bootstrap test for the moderated mediated-effects model.

Note: Results for bootstrap = 5000. The test to distinguish between indirect and direct effects is based on the confidence interval of bootstrap estimates after bias correction.
