Does Green Transformational Leadership Spur Economic and Environmental Performance through Green Product and Process Innovation in the Age of Digitalisation: Mediation and Moderation Analysis

Abstract

This research investigates the impact of green transformational leadership (GTL), on economic performance (ECP) and environment performance (ENP), through the intervention of green product innovation (GPI) and green process innovation (GPRI) in the age of digitalisation and accessing the moderating role of stakeholder’s pressure (SP). Quantitative and cross-sectional approach has been taken into consideration using Partial Least Square, Structural Equation Modeling (PLS SEM). Data for final analysis has been collected from textile sectors having an ISO-14001 certification. 120 ISO companies have been selected, located in Lahore, Karachi, and Faisalabad. The findings of the study have confirmed positive and significant relationship between GTL on ECP and ENP is partially mediated by the two mediators. This means that GTL not only directly affect ECP and ENP but also indirectly affect through GPI and GPRI. On the other hand, the relationship between GPI and ENP has been insignificant and hypothesis has been rejected.