Transformational leadership and environmental commitment in supply chain relationships: the mediating effect of perceived fairness

Abstract

Supply chain leaders can experience resistance when advancing initiatives supporting economic, social, or environmental dimensions of corporate social responsibility, particularly when benefits to the firm, its partners, or society are difficult to quantify. A growing body of literature calls for additional research that explores leadership and environmental commitment in supply chains. This study examines direct and indirect relationships between supply chain leadership and environmental commitment. Data from 103 supply chain representatives from small and medium-sized enterprises was analysed using partial least squares path modelling. Results showed transformational leadership had a direct influence on fairness in dealings and on environmental commitment. In addition, fairness between supply chain members was found to mediate the relationship between transformational leadership and environmental commitment. While leadership is necessary to advance broader vision and strategy, fairness can assist in furthering common initiatives, specifically environmental commitment. By integrating resources and capabilities in a fair manner, supply chains can advance critical dimensions of sustainability and corporate social responsibility.