The Role of Leadership to Employees’ Behaviors: A Signaling Theory Perspective

Abstract

ABSTRACT The issues of climate change and environmental degradation are substantial human concerns that have resulted in numerous consequences. The responsibility lies with human behaviors. Every company must adhere to environmental laws and regulations and emphasize employees’ pro-behaviors towards the environment (EPBTE). The primary aim of this academic investigation is to utilize the signaling theory to find the variables that influence EPBTE. The EPBTE is influenced by two main variables: spiritual leadership (SPL) and organizational support towards the environment (OSTE). The proposed model was evaluated in the banking industry using SEM analysis, employing the snowball sampling technique. The data support the influence of OSTE on EPBTE, and SPL also plays a substantial role in moderating this association. The present study contributes to the existing knowledge in the field of EPBTE research by investigating the significance of OSTE and SPL. Furthermore, the role of OSTE and SPL in the signaling theory perspective also adds knowledge to the existing literature.