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How Does Sustainable Leadership Promote the Willingness to Adopt an Environmental Innovation Strategy? The Key Mediating Role of Environmental Value

Author

Listed:
  • Ling Hu

    (Department of Finance, Hsing Wu University, New Taipei City 224012 24452, Taiwan)

  • Hung-Xin Li

    (Department of Logistics Management, National Defense University, Taipei City 112305, Taiwan)

  • Shih-Chin Lee

    (Department of Finance, Chihlee University of Technology, New Taipei 220305, Taiwan)

  • Yue-Shi Lee

    (Department of Computer Science and Information Engineering, Ming Chuan University, Taoyuan 333023, Taiwan)

  • Show-Jane Yen

    (Department of Computer Science and Information Engineering, Ming Chuan University, Taoyuan 333023, Taiwan)

Abstract

Sustainability has redefined corporate performance-oriented strategies, but research linking organizational leadership to sustainability strategies remains limited. Indeed, most past studies have employed the perspective of institutional pressure to explore why companies passively adopt environmental strategies. However, few studies have explored how to employ the internal management mechanisms of organizations to proactively promote companies to adopt environmental strategies. Therefore, the first purpose of this research is to explore how sustainable leadership promotes strategic adoption through environmental psychological ownership and environmental identity, based on the meaning management theory and upper echelons theory. The second purpose of this study is to address the new concepts of environmental psychological ownership and environmental identity through the social identity theory and psychological ownership theory. To validate the proposed model, this research collected responses from 101 chief executive officers and members of their senior management teams, and the results of the analysis supported all hypotheses. This research can not only provide academic literature with a cross-broad perspective on organizational leadership and sustainability but also provide an example for companies looking to implement sustainability strategies.

Suggested Citation

  • Ling Hu & Hung-Xin Li & Shih-Chin Lee & Yue-Shi Lee & Show-Jane Yen, 2024. "How Does Sustainable Leadership Promote the Willingness to Adopt an Environmental Innovation Strategy? The Key Mediating Role of Environmental Value," Sustainability, MDPI, vol. 16(7), pages 1-12, April.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:7:p:2988-:d:1369644
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    References listed on IDEAS

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    1. Stanley Y. B. Huang & Kuei-Hsien Chen & Yue-Shi Lee, 2021. "How to Promote Medium-Sized Farms to Adopt Environmental Strategy to Achieve Sustainable Production during the COVID-19 Pandemic?," Agriculture, MDPI, vol. 11(11), pages 1-8, October.
    2. Olivier Boiral & Charles Baron & Olen Gunnlaugson, 2014. "Environmental Leadership and Consciousness Development: A Case Study Among Canadian SMEs," Journal of Business Ethics, Springer, vol. 123(3), pages 363-383, September.
    3. Zhiqiang Liu & Ji Li & Hong Zhu & Zhenyao Cai & Luning Wang, 2014. "Chinese firms’ sustainable development—The role of future orientation, environmental commitment, and employee training," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 195-213, March.
    4. Chaminda Wijethilake & Rahat Munir & Ranjith Appuhami, 2018. "Environmental Innovation Strategy and Organizational Performance: Enabling and Controlling Uses of Management Control Systems," Journal of Business Ethics, Springer, vol. 151(4), pages 1139-1160, September.
    5. Joann Peck & Suzanne B. Shu, 2009. "The Effect of Mere Touch on Perceived Ownership," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(3), pages 434-447.
    6. Chao Hung Wang & Wei‐Jr Juo, 2021. "An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3241-3254, November.
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