Prompting green product and process innovation: examining the effects of green transformational leadership and dynamic capabilities

ABSTRACT

The purpose of this study is to examine the role of green transformational leadership (TL) that influences green product and process innovation. More specifically, drawing together from leadership and capability-based view, the present study views green dynamic capabilities (GDCs) as an important underlying mediating mechanism through which green TL prompts green innovation. It also examines the moderating role of environmental dynamism between green TL and GDCs. Data were collected from manufacturing SMEs using the convenience sampling technique at two points in time. PLS-SEM was utilised to perform the analysis. The results demonstrate that green TL has a significant direct and positive association with green product and process innovation. The results also show a positive effect of green TL on GDCs, and GDCs in turn promote green innovation. Furthermore, these findings suggest that environmental dynamism plays moderating role in the relationship between green TL and GDCs, which implies that green TL is more effective in determining GDCs under high environmental dynamism. The study contributes to theoretical and practical knowledge by elucidating the relationships among green TL and green product and process innovation, underscoring areas of managerial development that can affect sustainable product and process innovation, specifically in manufacturing SMEs industry.

KEYWORDS:

• Green transformational leadership
• green dynamic capabilities
• green product innovation
• green process innovation

Acknowledgement

All authors have contributed equally to this article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Bashir Ahmad

Bashir Ahmad did his PhD from Instabul Technical University, Turkey and currently he is serving as Assistant Professor at Department of Public Administration, GC University Faisalabad, Pakistan. His areas of research include National Business System, National Institutions, Absorptive Capacity, Intellectual Capital, and Innovation. His recent research has appeared in European Journal of Innovation Management, Journal of Knowledge Management, and Economic Research.

Imran Shafique

Imran Shafique is tenured Assistant Professor at COMSAT University Islamabad, Lahore Campus. His areas of interest include organizational leadership and HRM. His work has been published in the journals like Leadership & Organization Development Journal, Journal of Asia Business Studies, and Sustainability Accounting, Management and Policy Journal and European Journal of Innovation Management.

Ahmad Qammar

Ahmad Qammar is Assistant Professor of Management Sciences at COMSAT University Islamabad, Lahore Campus. Qammar did his PhD from Sheffield Management School, The University of Sheffield, UK. His areas of interest include Organizational Behavior, HR Practices, Perceived Organizational Support, Proactive Behavior, Organizational Justice, Cross Cultural Organizational Issues.

Mehmet Ercek

Mehmet Ercek is Associate Professor of Engineering Management at Istanbul Technical University, Turkey. His areas of research include Diffusion of Innovation, Knowledge Translation, Management History, Organization and Management Theory.

Masood Nawaz Kalyar

Masood Nawaz Kalyar is serving as Assistant Professor of Management at Lyallpur Business School, GCUF. Masood Kalyar received his Ph.D. in Management Sciences from Inönü University, Turkey. His current research investigates how life inside organizations can influence people and organizations as well as their productivity and performance. Originally focusing on leadership and creativity, his research expanded to encompass the areas of leadership, organizational behavior, decision science, and strategic management.