The Impact of Green Transformational Leadership and Corporate Environmental Commitment on Perceived Corporate Sustainable Performance: the Mediating Role of Green Innovation

Lee, Jan Yi (2025) The Impact of Green Transformational Leadership and Corporate Environmental Commitment on Perceived Corporate Sustainable Performance: the Mediating Role of Green Innovation. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

The global pursuit of sustainable development has underscored the importance of corporate sustainable performance as a key driver of economic, social, and environmental progress. Despite this, many organisations struggle with inconsistent and fragmented approaches, impeding the broader transition to sustainability. This research examines the interplay between green transformational leadership, corporate environmental commitment, and perceived corporate sustainable performance, with green innovation as a mediating factor. A quantitative cross-sectional study was carried out to collect data through an electronic questionnaire from 230 employees working in various sectors in Malaysia. The analysis was performed using the Statistical Package for Social Sciences (SPSS) and Partial Least Squares Structural Equation Modeling (PLS-SEM, also known as SmartPLS). The findings indicated that green transformational leadership and corporate environmental commitment have a direct impact on perceived corporate sustainable performance, both directly and indirectly through green innovation. From a practical perspective, these insights highlight the need for organisations to prioritise leadership development programs that foster green transformational qualities and integrate environmental commitments into their core strategies. Furthermore, investing in green innovation is essential to drive sustainability as well as ensure long-term competitiveness and alignment with global sustainability goals.