How Green Innovation and Green Corporate Social Responsibility Transform Green Transformational Leadership Into Sustainable Performance? Evidence From an Emerging Economy

Abstract

In light of the rapidly evolving technology nowadays, a green business model is now required for sustainability and long‐term survival, especially for small and medium‐sized enterprises (SMEs) and general businesses. This study aims to investigate how green transformational leadership and sustainable corporate performance for SMEs interact by examining the coordinating functions of green innovation and green corporate social responsibility in a developing nation. The current study followed the quantitative methodology along with a questionnaire for data collection. The survey's target sample consisted of senior and middle‐level executives from Vietnam's printing and FMCG manufacturing industries. Following the survey, 449 valid responses were gathered, and SmartPLS (version 4.1.0.6) structural equation modeling was used to analyze the collected data. This analysis contributes to the body of knowledge by using the natural resource‐based view Theory and Stakeholder Theory to provide a “three‐green‐model” that includes green transformational leadership, green innovation, and green corporate social responsibility, as well as their combined impact on sustainable corporate performance in a developing nation. The study findings confirm that green transformational leadership has a positive impact on sustainable corporate performance, both directly and indirectly, through green innovation and green corporate social responsibility, leading to better financial and environmental results. This study provides useful insights into how green leadership promotes sustainable growth, giving SMEs a method to balance between social and environmental responsibility and economic success.