Dual Pathways Toward Net‐Zero–Based Performance Through Responsible Leadership—Mediation of Green HR Practices, Green Innovation, and Moderation of Digital Capabilities

Khalid Rasheed Memon, Bilqees Ghani and Wali Ur Rehman

Business Strategy and the Environment, 2025, vol. 34, issue 8, 10077-10097

Abstract: The research pertains to exploring one of the unique relationships, between responsible leadership (RL) and net‐zero–based performance (NZBP), through two different pathways utilizing the theoretical lens of upper echelons theory. One is a direct pathway through the moderation of digital capabilities and the other is indirect through the sequential mediation of green HR practices and green innovation. Data were collected through a two‐wave, time‐lagged design from 357 senior officials of large manufacturing firms. Data analysis was also carried out in two stages; firstly through “Partial Least Structural Equation Modelling” (PLS‐SEM) and then through “Artificial Neural Networks” (ANN). The PLS‐SEM results conveyed positive relationship between RL and NZBP through both pathways. Further, the moderator digital capabilities catalyzed the relationship between RL and NZBP. The ANN analysis while strengthening the PLS‐SEM results, predicted the dimension of “leadership” holding greater importance, followed by “business” and “environmental” within the spectrum of RL responsibilities. The findings have deeper insights for the fields of leadership and NZBP, advancing both theoretical understanding and practical applications for sustainable business practices.

Date: 2025
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