Managers’ Perceptions Regarding the Effect of Leadership on Organizational Performance: Mediating Role of Green Supply Chain Management Practices

Abstract

The primary purpose of this research is to test a research model that examines the perceptions of Cihan Group managers regarding the impact of effective leadership in improving organizational performance: Green supply chain management practices as a mediating mechanism. As a data collection method, a survey instrument was considered that included three dimensions of effective leadership, Green supply chain management (GSCM), and organizational performance. The data were analyzed by using partial least squares–structural equation modeling (PLS-SEM). The research found positive and significant causal relationships among the leading organization, leading people, and leading self with GSCM practices. In addition, GSCM practices positively correlated with organizational performance. The findings confirmed that GSCM practices fully mediate the relationship among the leading organization, leading people, and organizational performance, as the leading organization and leading people constructs indirectly correlated with organizational performance. The findings also showed that GSCM practices partially mediated the relationship between the leading self and organizational performance, as leading self, directly and indirectly, correlated to organizational performance. The research contributes to the literature by indicating that effective leadership via its dimensions—leading organization, people, and self— indirectly improves organizational performance by the mediating role of GSCM practices. Meanwhile, GSCM practices improve social and environmental performance.

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