How and when does green transformational leadership affect environmental performance

Abstract

Conceptual and empirical advancement has failed to keep pace with the industry's increasing interest in green leadership and environmental performance (EP) in the context of manufacturing SMEs in least-developed countries. Therefore, this study investigates whether green human resources management (GHRM) mediates between green transformational leadership (GTL) and EP among manufacturing SMEs in Yemen, a least developed country. Furthermore, it evaluates the moderating effect of corporate environmental ethics (CEE) on that relationship. Through a survey questionnaire, data were collected from 262 Yemeni manufacturing SMEs and analysed through hierarchical regression analysis. The empirical results confirm that GTL has a positive, direct effect on EP and indirectly through GHRM. This study also confirms that GHRM is positively associated with EP which increases when firm employees have CEE. Finally, our study extends our knowledge of EP with respect to GTL and its underlying mechanism and conditional effect. It contributes to the green management literature and has managerial implications for firms to improve EP more effectively.

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