Responsible leadership and triple-bottom-line performance—do corporate reputation and innovation mediate this relationship?

Abstract

PurposeDrawing on stakeholder theory and contingency theory, this study empirically investigates the relationship between responsible leadership (RL) and each dimension of triple-bottom-line (TBL) performance. Moreover, we tested the mediating effect of corporate reputation (CR) and innovation between RL and TBL performance.Design/methodology/approachPerceptual data were collected from 227 senior-level Pakistani managers using a questionnaire survey. Structural equation modeling (SEM) was used to test the direct and mediating effect hypotheses.FindingsThe results revealed that RL significantly and positively affects each dimension of TBL performance. Further, innovation mediated the relationship between RL and each dimension of TBL performance. However, CR did not mediate the relationship between RL and environmental performance.Originality/valueThis is maiden study to empirically investigate the effect of RL on meso-level outcome. Further, this study would be among the few ones to use TBL as a measure of corporate performance. Moreover, it will be the first study to test the mediating role of CR and innovation in the above-mentioned relationship and will also validate contingency theory.