Unlocking sustainable success: exploring the impact of transformational leadership, organizational culture, and CSR performance on financial performance in the Italian manufacturing sector

Muhammad Junaid Ahsan

Social Responsibility Journal, 2023, vol. 20, issue 4, 783-803

Abstract: Purpose - This study aims to investigate how organizational culture (OC) and transformational leadership (TL) affect corporate social responsibility (CSR) performance (environmental performance and social performance) and financial performance (FP) in the context of the Italian manufacturing sector. Grounded in resource-based view theory, this study explores how these factors influence sustainable firm performance. Design/methodology/approach - Data gathered from 260 employees were analyzed to examine the multidimensional aspects of CSR, encompassing social and environmental sustainability. Findings - The findings highlight the pressing need for sustainable firm performance in the existing environment, supporting the hypothesis that firms achieve sustainable and FP through the recognition of TL and OC. Moreover, a positive and significant relationship between CSR performance and FP was established, underscoring the strategic importance of integrating CSR initiatives into core business practices. This study offers valuable insights for both academia and firms, providing theoretical and practical implications that underscore the importance of cultivating a robust OC to drive performance enhancements. Originality/value - This study is novel because it is one of the first, to the best of the author’s knowledge, to analyze the relationships between TL, OC and performance components associated with CSR.

Keywords: Corporate social responsibility; Transformational leadership; Organizational culture; CSR performance; Financial performance; Resource-based view (RBV) theory (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:srj-06-2023-0332

DOI: 10.1108/SRJ-06-2023-0332

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