The impact of green transformational leadership on environmental performance and firm performance through the green innovation in Ho Chi Minh city SMES

Abstract

The purpose of this research is to investigate the relationship between green transformational leadership (GTL) and green organizational variables such as green human resource management (GHRM), green thinking (GT), and green innovation (GI). Examine the link between these green elements, as well as the function of GI in the development of firm performance (FP) and environmental performance (EP) in Vietnamese SMEs. The authors investigated the hypotheses supplied by 416 survey samples from managers and directors at HCMC SME businesses using structural equation modeling (SEM). Our findings reveal that GTL significantly influences the three green criteria, GHRM, GT, and GI, laying the groundwork for future growth in an era when firms are becoming more environmentally conscious. We investigate the favorable effects of GHRM and GT on GI and find GI as a mediating factor with positive effects on EP and FP. This research demonstrates the driving role of a green transformation leader, who can motivate and mobilize resources of intellectual and human resources inside a company to generate and implement green ideas. At the same time, the finding highlights that businesses will benefit from continual green innovation in terms of the environment, earnings, and corporate image. As a result, the findings of this study and related documents contribute to helping managers understand the need for and benefits of green factors, thereby prioritizing the transmission of green goals to employees via vision and mission, thereby creating a new cultural dimension that contributes to the natural environment's sustainability. Furthermore, managers are urged to recruit, inspire, and provide opportunities for green human resources to use their potential for enhancing green products and processes to build the business and contribute to the environment.