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This study aims to provide an understanding of the role of green transformational leadership (GTL) and green innovation practices in organizations through cognitive processes: green thinking and creative process engagement (CPE). Using a survey questionnaire, we collected data from 342 respondents from high-tech industries located in China. The data were examined through structural equation modeling (variance-based) to analyze the hypotheses. The findings of the study show that GTL has a substantial effect on green thinking, CPE, and green innovation. The findings further reveal that green thinking and CPE mediate the relationship between GTL and green innovation. Green thinking and creative processes have become instrumental tools in fostering green innovation. Thus, this investigation provides novel insights into how to promote GTL and cognitive processes in organizations to solicit green innovation.

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

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