Green transformational leadership and organizational culture on environmental performance

Abstract

This study examines the influence of eco-conscious transformational leadership and organizational culture on environmental outcomes in the context of East Java’s small and medium-sized enterprise (SME) industry. It investigates the mediating factors of green human resource management (green HRM) and sustainable innovation. The research methodology employs an explanatory approach to understand the relationships among these variables. The study’s target population consists of all registered SMEs in East Java, as recorded by the Provincial Office of Cooperatives and SMEs. These entities include various legal statuses in terms of ownership (PT/CV/UD/Foundation), and there are a total of 862,450 business entities. To determine an appropriate sample size, the study utilizes Slovin’s formula, resulting in a sample size of 400 entities. The research adopts a stratified cluster random sampling method for data collection and employs structural equation modeling (SEM) for data analysis. The findings of the study suggest that eco-conscious transformative leadership has a positive impact on green HRM, green innovation, and environmental outcomes. Similarly, organizational culture was found to influence green HRM and green innovation. Additionally, both green HRM and green innovation were positively associated with environmental performance. However, the relationship between organizational culture and environmental performance was found to be insignificant.