Green transformational leadership and its prediction of sustainable performance: The mediating role of green innovation
Authors
-
Duong Cong Hiep
hiepdc@tueba.edu.vn
Thai Nguyen University of Economics and Business Administration, Thai Nguyen, Viet Namhttps://orcid.org/0009-0001-4557-6973
DOI:
10.46223/HCMCOUJS.econ.en.17.2.4859.2027Keywords:
electronics industry; green innovation; green transformational leadership; sustainable performance; VietnamJEL Classification:
M1; M12; M5; M54Abstract
Purpose: This study investigates the current status and prevailing challenges of green transformational leadership within Vietnam’s electronics industry. In addressing these issues, this research advances a theoretical framework designed to bridge the identified gaps and to promote sustainable performance.
Design/methodology/approach: Data were collected from 379 employees employed in Vietnam’s electronics industry through a self-administered survey. To evaluate the proposed hypotheses, we employed Partial Least Squares Structural Equation Modeling (PLS-SEM) as the principal analytical technique.
Findings: The results indicate that green transformational leadership significantly predicts sustainable performance. Moreover, green innovation serves as a mediating mechanism that explains how green transformational leadership enhances sustainable performance.
Practical implications: These results provide valuable implications for policymakers in Vietnam’s electronics industry by demonstrating how green transformational leadership can serve as a strategic lever for advancing sustainable performance.
Originality/value: This paper makes several contributions. First, it enriches the broader literature on green transformational leadership by extending its theoretical scope. Second, it advances understanding of green transformational leadership in the underexplored context of Vietnam’s electronics industry. Third, it identifies green innovation as a critical mediating mechanism linking green transformational leadership to sustainable performance.
Downloads
Download data is not yet available.References
Aftab, J., Abid, N., Cucari, N., & Savastano, M. (2023). Green human resource management and environmental performance: The role of green innovation and environmental strategy in a developing country. Business Strategy and the Environment, 32(4), 1782-1798. https://doi.org/10.1002/bse.3219
Al Amosh, H., & Khatib, S. F. A. (2021). Ownership structure and environmental, social and governance performance disclosure: The moderating role of the board independence. Journal of Business and Socio-economic Development, 2(1), 49-66. https://doi.org/10.1108/jbsed-07-2021-0094
Al-Shammari, A. S. A., Alshammrei, S., Nawaz, N., & Tayyab, M. (2022). Green human resource management and sustainable performance with the mediating role of green innovation: A perspective of new technological era. Frontiers in Environmental Science, 10, Article 901235. https://doi.org/10.3389/fenvs.2022.901235
Asadi, S., OmSalameh Pourhashemi, S., Nilashi, M., Abdullah, R., Samad, S., Yadegaridehkordi, E., Aljojo, N., & Razali, N. S. (2020). Investigating influence of green innovation on sustainability performance: A case on Malaysian hotel industry. Journal of Cleaner Production, 258, Article 120860. https://doi.org/10.1016/j.jclepro.2020.120860
Awan, U., Nauman, S., & Sroufe, R. (2021). Exploring the effect of buyer engagement on green product innovation: Empirical evidence from manufacturers. Business Strategy and the Environment, 30(1), 463-477. https://doi.org/10.1002/bse.2631
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74-94. https://doi.org/10.1007/BF02723327
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Barney, J. B., Ketchen, D. J., Wright, M., Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: Breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390-1412. https://doi.org/10.1177/0149206310385695
Begum, S., Ashfaq, M., Xia, E., & Awan, U. (2022). Does green transformational leadership lead to green innovation? The role of green thinking and creative process engagement. Business Strategy and the Environment, 31(1), 580-597. https://doi.org/10.1002/bse.2911
Chang, C.-H. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104(3), 361-370. https://doi.org/10.1007/s10551-011-0914-x
Chang, R.-D., Zuo, J., Zhao, Z.-Y., Soebarto, V., Lu, Y., Zillante, G., & Gan, X.-L. (2018). Sustainability attitude and performance of construction enterprises: A China study. Journal of Cleaner Production, 172, 1440-1451. https://doi.org/10.1016/j.jclepro.2017.10.277
Chen, X., Yi, N., Zhang, L., & Li, D. (2018). Does institutional pressure foster corporate green innovation? Evidence from China’s top 100 companies. Journal of Cleaner Production, 188, 304-311. https://doi.org/10.1016/j.jclepro.2018.03.257
Chen, Y.-S., & Chang, C.-H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of Business Ethics, 116(1), 107-119. https://doi.org/10.1007/s10551-012-1452-x
Chen, Y.-S., Chang, C.-H., & Lin, Y.-H. (2014). Green transformational leadership and green performance: The mediation effects of green mindfulness and green self-efficacy. Sustainability, 6(10), 6604-6621. https://doi.org/10.3390/su6106604
Chen, Y.-S., Lai, S.-B., & Wen, C.-T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331-339. https://doi.org/10.1007/s10551-006-9025-5
Chiou, T.-Y., Chan, H. K., Lettice, F., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822-836. https://doi.org/10.1016/j.tre.2011.05.016
Chua, C., Li, X., Tan, K. H., & Yuen, K. F. (2024). Building sustainable performance in the maritime industry via digital resources and innovation. Transport Policy, 149, 282-299. https://doi.org/10.1016/j.tranpol.2024.02.014
Clemens, B., & Bakstran, L. (2010). A framework of theoretical lenses and strategic purposes to describe relationships among firm environmental strategy, financial performance, and environmental performance. Management Research Review, 33(4), 393-405. https://doi.org/10.1108/01409171011030480
Dai, X., Siddik, A. B., & Tian, H. (2022). Corporate social responsibility, green finance and environmental performance: Does green innovation matter? Sustainability, 14(20), Article 13607. https://doi.org/10.3390/su142013607
Daidoanket. (2025). A boom year for the electronics industry. https://daidoanket.vn
Dangelico, R. M., & Pujari, D. (2010). Mainstreaming green product innovation: Why and how companies integrate environmental sustainability. Journal of Business Ethics, 95(3), 471-486. https://doi.org/10.1007/s10551-010-0434-0
DeVellis, R. F. (2016). Scale development: Theory and applications (Vol. 26). Sage Publications.
Elkington, J. (1994). Towards the sustainable corporation: Win-win-win business strategies for sustainable development. California Management Review, 36(2), 90-100. https://doi.org/10.2307/41165746
Fernando, Y., Chiappetta Jabbour, C. J., & Wah, W.-X. (2019). Pursuing green growth in technology firms through the connections between environmental innovation and sustainable business performance: Does service capability matter? Resources, Conservation and Recycling, 141, 8-20. https://doi.org/10.1016/j.resconrec.2018.09.031
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382-388. https://doi.org/10.1177/002224378101800313
Hair, J., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2021). A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Sage Publications.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8
Huang, Y., Gan, J., Liu, B., & Zhao, K. (2024). Environmental policy and green development in urban and rural construction: Beggar-thy-neighbor or win-win situation? Journal of Cleaner Production, 446, Article 141201. https://doi.org/10.1016/j.jclepro.2024.141201
Huynh, T. N. H., Nguyen, T. T. N., & Vo, N. N. Y. (2024). The influence of knowledge management, green transformational leadership, green organizational culture on green innovation and sustainable performance: The case of Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), Article 100436. https://doi.org/10.1016/j.joitmc.2024.100436
Kusi, M., Zhao, F., & Sukamani, D. (2021). Impact of perceived organizational support and green transformational leadership on sustainable organizational performance: A SEM approach. Business Process Management Journal, 27(5), 1373-1390. https://doi.org/10.1108/BPMJ-09-2020-0419
Le, P. B., & Lei, H. (2018). The mediating role of trust in stimulating the relationship between transformational leadership and knowledge sharing processes. Journal of Knowledge Management, 22(3), 521-537. https://doi.org/10.1108/JKM-10-2016-0463
Le, T. T., & Le, C. G. L. (2025). How green innovation and green corporate social responsibility transform green transformational leadership into sustainable performance? Evidence from an emerging economy. Corporate Social Responsibility and Environmental Management, 32(2), 2527-2541. https://doi.org/10.1002/csr.3077
Li, H., Li, Y., Sarfarz, M., & Ozturk, I. (2023). Enhancing firms’ green innovation and sustainable performance through the mediating role of green product innovation and moderating role of employees’ green behavior. Economic research-Ekonomska istraživanja, 36(2), Article 2142263. https://doi.org/10.1080/1331677X.2022.2142263
Li, W., Bhutto, T. A., Xuhui, W., Maitlo, Q., Zafar, A. U., & Bhutto, N. A. (2020). Unlocking employees’ green creativity: The effects of green transformational leadership, green intrinsic, and extrinsic motivation. Journal of Cleaner Production, 255, Article 120229. https://doi.org/10.1016/j.jclepro.2020.120229
Lin, M., Effendi, A. A., & Iqbal, Q. (2022). The mechanism underlying the sustainable performance of transformational leadership: Organizational identification as moderator. Sustainability, 14(23), Article 15568. https://doi.org/10.3390/su142315568
Liu, B., Ding, C. J., Ahmed, A. D., Huang, Y., & Su, Y. (2024). Carbon emission allowances and green development efficiency. Journal of Cleaner Production, 463, Article 142246. https://doi.org/10.1016/j.jclepro.2024.142246
Mathiyazhagan, K., Agarwal, V., Appolloni, A., Saikouk, T., & Gnanavelbabu, A. (2021). Integrating lean and agile practices for achieving global sustainability goals in Indian manufacturing industries. Technological Forecasting and Social Change, 171, Article 120982. https://doi.org/10.1016/j.techfore.2021.120982
Mirahsani, N., Azizan, O., Shahriari, M., Rexhepi, G., & Najmi, A. (2024). Green culture toward employee green behavior; the mediation roles of perceived support and green identity. Environment, Development and Sustainability, 26(6), 16149-16172. https://doi.org/10.1007/s10668-023-03291-0
Mittal, S., & Dhar, R. L. (2016). Effect of green transformational leadership on green creativity: A study of tourist hotels. Tourism Management, 57, 118-127. https://doi.org/10.1016/j.tourman.2016.05.007
Mousa, S. K., Fernandez‐Crehuet, J. M., & Thaher, Y. A. Y. (2025). Advancing sustainable performance in healthcare: Mediating roles of green HRM and green innovation under green transformational leadership. Business Strategy and the Environment, 34(5), 5260-5282. https://doi.org/10.1002/bse.4238
Mubeen, A., Nisar, Q. A., Patwary, A. K., Rehman, S., & Ahmad, W. (2024). Greening your business: Nexus of green dynamic capabilities, green innovation and sustainable performance. Environment, Development and Sustainability, 26(9), 22747-22773. https://doi.org/10.1007/s10668-023-03574-6
Mukonza, C., & Swarts, I. (2019). Examining the role of green transformational leadership on promoting green organizational behavior. In S. Atiku (Ed.), Contemporary multicultural orientations and practices for global leadership (pp. 200-224). IGI Global. https://doi.org/10.4018/978-1-5225-6286-3.ch011
Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163, Article 120481. https://doi.org/10.1016/j.techfore.2020.120481
Ren, S., Wang, Y., Hu, Y., & Yan, J. (2021). CEO hometown identity and firm green innovation. Business Strategy and the Environment, 30(2), 756-774. https://doi.org/10.1002/bse.2652
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In S. Atiku (Ed.) , Handbook of market research (pp. 587-632). Springer. https://doi.org/10.1007/978-3-319-05542-8_15-2
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2022). Partial least squares structural equation modeling. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of Market Research (pp. 587-632). Springer International Publishing. https://doi.org/10.1007/978-3-319-57413-4_15
Shah, A. K., Jintian, Y., Sukamani, D., & Kusi, M. (2020). How green transformational leadership influences sustainability? Mediating effects of green creativity and green procurement. Journal on Innovation and Sustainability RISUS, 11(4), 69-87. https://doi.org/0000-0002-9027-611X
Shoaib, M., Nawal, A., Zámečník, R., Korsakienė, R., & Rehman, A. U. (2022). Go green! Measuring the factors that influence sustainable performance. Journal of Cleaner Production, 366, Article 132959. https://doi.org/10.1016/j.jclepro.2022.132959
Singh, S. K., Giudice, M. D., Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting and Social Change, 150, Article 119762. https://doi.org/10.1016/j.techfore.2019.119762
Takeuchi, R., Lepak, D. P., Wang, H., & Takeuchi, K. (2007). An empirical examination of the mechanisms mediating between high-performance work systems and the performance of Japanese organizations. Journal of Applied Psychology, 92(4), Article 1069. https://doi.org/10.1037/0021-9010.92.4.1069
Tian, H., Siddik, A. B., Pertheban, T. R., & Rahman, M. N. (2023). Does fintech innovation and green transformational leadership improve green innovation and corporate environmental performance? A hybrid SEM-ANN approach. Journal of Innovation & Knowledge, 8(3), Article 100396. https://doi.org/10.1016/j.jik.2023.100396
United Nations. (2025). 2024 United Nations in Viet Nam annual results report. https://vietnam.un.org/sites/default/files/2025-05/2024%20United%20Nations%20in%20Viet%20Nam%20Annual%20Results%20Report_EN_0.pdf
Wang, C. H., & Juo, W. J. (2021). An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability. Business Strategy and the Environment, 30(7), 3241-3254. https://doi.org/10.1002/bse.2800
Wong, S. K. S. (2013). Environmental requirements, knowledge sharing and green innovation: Empirical evidence from the electronics industry in China. Business Strategy and the Environment, 22(5), 321-338. https://doi.org/10.1002/bse.1746
Yun, J. J., Ahn, H. J., Lee, D. S., Park, K. B., & Zhao, X. (2022). Inter-rationality: Modeling of bounded rationality in open innovation dynamics. Technological Forecasting and Social Change, 184, Article 122015. https://doi.org/10.1016/j.techfore.2022.122015
Zhang, J., Kang, L., Li, H., Ballesteros-Pérez, P., Skitmore, M., & Zuo, J. (2020). The impact of environmental regulations on urban Green innovation efficiency: The case of Xi’an. Sustainable Cities and Society, 57, Article 102123. https://doi.org/10.1016/j.scs.2020.102123
Zhilei, L., Ho, J. A., & Ranjanee, S. (2025). Balancing acts: Unveiling the bidimensional influence of corporate environmental responsibility on Chinese manufacturing firms’ green innovation and financial performance. Eurasian Business Review, 15, 841-870. https://doi.org/10.1007/s40821-025-00303-z
Downloads
Received: 03-10-2025Accepted: 25-02-2026Published: 27-05-2026Statistics Views
Abstract: 562 PDF: 56How to Cite
Duong, C. H. (2026). Green transformational leadership and its prediction of sustainable performance: The mediating role of green innovation. HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 17(2). https://doi.org/10.46223/HCMCOUJS.econ.en.17.2.4859.2027License
Copyright (c) 2026 Duong Cong Hiep

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
