The Green Transformational Leadership, Green Human Resource Management, Green Innovation and Sustainable Performance: Evidence from Vietnam

Abstract

Sustainable performance has been an interesting topic and attracted a lot of attention among businesses, scholars and policy planners. Green transformational leadership (GTL), green human resource management (GHRM) and green innovation (GI) are seen as the most important factors in shaping green behaviors, improving competitive advantages and achieving sustainable performance. This study examines the effect of GTL, GHRM, GI on sustainable performance, including environment performance (EP), economic performance (EcP) and social performance (SP). Besides that, this paper also studies the effect of GTL on GHRM and GI as well as the impact of GHRM on GI. A multi-respondent survey was conducted to collect data. Indicators including item loading, cronbach's alpha, composite reliability, average variance extracted are applied to assess the constructs’ convergent credibility and internal consistency. The discriminant validity of the measuring instruments was evaluated using the Fornell - Larcker Criterion and the Heterotrait - Monotrait Ratio. The PLS-SEM analysis method was applied to test hypotheses. The findings of this study reveal that GTL positively and significantly influences GHRM practices and GI. Regarding sustainable performance, the findings of this study also suggest that GTL is positively related to EcP and SP, whereas EP is not. Regarding GHRM, the proposed relationship between GHRM and EP and SP are supported, however, the findings do not support the relationship between GHRM and EcP. Besides that, the result suggests that GHRM positively and significantly affects GI. Concerning the relationship between GI and sustainable performance, the findings show that GI only positively influences EcP and does not impact EP and SP.