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

In: Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)

Author

Listed:
  • Ihda Salma Sakina

    (Southwest Jiaotong University)

  • Uus Sopandi

    (Universitas Islam Nusantara)

  • Xiangsheng Dou

    (Southwest Jiaotong University)

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.

Suggested Citation

  • Ihda Salma Sakina & Uus Sopandi & Xiangsheng Dou, 2025. "Transformational Leadership and Sustainability Performance: Mediating Role of Green Process Innovation," Advances in Economics, Business and Management Research, in: Ratih Hurriyati & Sulastri Sulastri & Lisnawati Lisnawati & Lili Adi Wibowo (ed.), Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), pages 720-728, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-817-2_84
    DOI: 10.2991/978-94-6463-817-2_84
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