Unlocking sustainable success: exploring the impact of transformational leadership, organizational culture, and CSR performance on financial performance in the Italian manufacturing sector

Abstract

Purpose This study aims to investigate how organizational culture (OC) and transformational leadership (TL) affect corporate social responsibility (CSR) performance (environmental performance and social performance) and financial performance (FP) in the context of the Italian manufacturing sector. Grounded in resource-based view theory, this study explores how these factors influence sustainable firm performance. Design/methodology/approach Data gathered from 260 employees were analyzed to examine the multidimensional aspects of CSR, encompassing social and environmental sustainability. Findings The findings highlight the pressing need for sustainable firm performance in the existing environment, supporting the hypothesis that firms achieve sustainable and FP through the recognition of TL and OC. Moreover, a positive and significant relationship between CSR performance and FP was established, underscoring the strategic importance of integrating CSR initiatives into core business practices. This study offers valuable insights for both academia and firms, providing theoretical and practical implications that underscore the importance of cultivating a robust OC to drive performance enhancements. Originality/value This study is novel because it is one of the first, to the best of the author’s knowledge, to analyze the relationships between TL, OC and performance components associated with CSR.

Leadership Styles and Corporate Social Responsibility: A Case Study of the Construction Industry in Bangkok, Thailand

“…Hofstede et al (1991) found that organizational culture is not only a single entity but can also be divided into different components, such as individual and collective, and power distance, which may affect CSR activities differently. A study by Ahsan (2024) has introduced a Competing Values Framework that divides organizational culture into four types: race, hierarchy, market, hierarchy, and race-branded culture, which is transformational and management, CSR rather than market culture perspective but more aligned with practices, which prioritize efficiency and consistency (Abdelwahed & Soomro, 2024). In the construction industry, the role of organizational culture is critical because of the impact of the enterprise on the environment and the local community.…”

Transformational Leadership Dynamics and Its Influence on Innovation in the Realm of Entrepreneurial Management

“…Transformational leaders not only focus on achieving current goals, but also have a vision that involves nurturing the next generation who can inherit the legacy of innovation and leadership. By creating and nurturing an environment that supports talent development, transformational leadership makes a long-term contribution to the sustainability of innovation in the organisation [22]. In addition to supporting direct innovation through the development of new ideas, transformational leaders are committed to unearthing untapped leadership potential, creating development programmes, and providing mentorship to ensure that the organisation has a cadre of leaders who are diverse, creative, and ready to face future challenges [23].…”

Corporate Social Responsibility Strategy Practices, Employee Commitment, Reputation as Sources of Competitive Advantage

“…Unfortunately, there has been little research in this domain, which highlights a gap for future research. Added to this, most CSR research have concentrated on developed nations (Ahsan, 2023; Davidson, 2016), leaving questions and concerns related to the applicability and transferability of established CSR frameworks in developing countries (Jamali & Karam, 2016).…”

“…This study complements this stream of research by investigating how employee commitment and corporate reputation can influence the connection between CSR and CCA. Second, while the majority of CSR and environment-related research were conducted in Western and developed countries (Ahsan, 2023; S. Ali et al, 2022; Davidson, 2016; Xu et al, 2022), we have studied CSR in the Vietnamese context.…”