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The influence of responsible leadership on environmental innovation and environmental performance: The moderating role of managerial discretion

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  • Zhongju Liao
  • Manting Zhang

Abstract

Based on stakeholder and upper‐echelon theories and following the logic of “leadership‐behavior‐performance,” this study constructs a model to investigate the relationships between responsible leadership, managerial discretion, environmental innovation, and firm's environmental performance. This study analyzed a sample of survey responses from 208 manufacturing firms. The results show that the three dimensions of responsible leadership (relationship building, relational governance, and sharing orientation) have a positive effect on incremental environmental innovation; relational governance and sharing orientation have a positive effect on radical environmental innovation; both incremental and radical environmental innovation have a positive effect on a firm's environmental performance; and finally, managerial discretion plays a significant and positive moderating role in the relationships between sharing orientation and incremental and radical environmental innovation, and between relational governance and radical environmental innovation.

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  • Zhongju Liao & Manting Zhang, 2020. "The influence of responsible leadership on environmental innovation and environmental performance: The moderating role of managerial discretion," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2016-2027, September.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:5:p:2016-2027
    DOI: 10.1002/csr.1942
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    19. Rixiao Cui & Juanru Wang & Cong Zhou, 2023. "Exploring the linkages of green transformational leadership, organizational green learning, and radical green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 185-199, January.
    20. Yanlin Ma & Yuting Liu & Andrea Appolloni & Junqi Liu, 2021. "Does green public procurement encourage firm's environmental certification practice? The mediation role of top management support," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1002-1017, May.
    21. Salvatore Esposito De Falco & Giuseppe Scandurra & Antonio Thomas, 2021. "How stakeholders affect the pursuit of the Environmental, Social, and Governance. Evidence from innovative small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1528-1539, September.
    22. Afriyadi Cahyadi & József Poór & Katalin Szabó, 2022. "Pursuing Consultant Performance: The Roles of Sustainable Leadership Styles, Sustainable Human Resource Management Practices, and Consultant Job Satisfaction," Sustainability, MDPI, vol. 14(7), pages 1-20, March.
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    24. Valero-Gil, Jesus & Surroca, Jordi A. & Tribo, Josep A. & Gutierrez, Leopoldo & Montiel, Ivan, 2023. "Innovation vs. standardization: The conjoint effects of eco-innovation and environmental management systems on environmental performance," Research Policy, Elsevier, vol. 52(4).

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