Sustainable leadership impact on environmental performance: exploring employee well-being, innovation, and organizational resilience

Abstract

This study investigates the effect of sustainable leadership on environmental performance, specifically examining how employee well-being and innovation mediate this relationship, and how organizational resilience moderates this relationship within the information technology sector in Denmark. Utilizing a cross-sectional design and drawing on sustainable leadership theory and social exchange theory, the research employed PLS-SEM analysis. Hypotheses were tested, exploring the variables’ direct, moderated and mediated relationships. The results support all hypotheses, revealing positive relationships between sustainable leadership and environmental performance, employee well-being, and innovation. Furthermore, employee well-being and innovation mediate the relationship between sustainable leadership and environmental performance. Organizational resilience moderates the association between sustainable leadership and environmental performance. This research offers valuable insights into the dynamics of sustainable leadership in the IT sector, emphasizing its positive impact on environmental performance and organizational outcomes. The study suggests practical implications for leaders and identifies avenues for future research. This study extends the understanding of sustainable leadership by empirically examining its multifaceted impact in the specific context of Denmark’s information technology sector. Incorporating both sustainable leadership theory and social exchange theory enriches the theoretical framework, contributing to the originality of the research.