Transformational Leadership and Sustainability Performance: Mediating Role of Green Process Innovation

Ihda Salma Sakina (), Uus Sopandi and Xiangsheng Dou
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Ihda Salma Sakina: Southwest Jiaotong University
Uus Sopandi: Universitas Islam Nusantara
Xiangsheng Dou: Southwest Jiaotong University

A chapter in Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), 2025, pp 720-728 from Springer

Abstract: Abstract Transformational leadership has been widely studied across various contexts, yet its impact on work-related outcomes in Indonesia’s manufacturing sector remains underexplored. This study investigates the influence of transformational leadership on sustainability performance, with a particular focus on green process innovation as a mediating factor. Drawing on responses from 391 managers in Indonesian manufacturing firms, the research examines how transformational leadership affects sustainability performance, as well as its relationship with green product and process innovation. The results indicate that transformational leadership positively influences sustainability performance. Moreover, green process innovation mediates the relationship between green product innovation and sustainability performance. These findings suggest that transformational leadership not only directly enhances sustainability performance but also fosters a culture of innovation that supports green initiatives. For practitioners, this study highlights the importance of cultivating transformational leadership to drive green product and process innovations. Such initiatives can lead to long-term sustainable outcomes in the manufacturing industry. Consequently, manufacturers should view green product development as a strategic pathway toward sustainability. Furthermore, managers are encouraged to deepen their understanding of the interconnections among transformational leadership, green process innovation, green product innovation, and sustainability performance to better navigate the shift toward more environmentally responsible practices.

Keywords: Transformational Leadership; Green Product Innovation; Green Process Innovation; Sustainability Performance; Manufacture (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-817-2_84

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DOI: 10.2991/978-94-6463-817-2_84

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