Transformational Leadership and Employee Green Behavior in SMEs: The Mediating Roles of Green Business Strategy and Organizational Support and the Moderating Effect of Implementation Barriers

Abstract

Purpose: This study examines the role of transformational leadership in promoting employee green behavior (EGB) in small and medium-sized enterprises (SMEs), with particular emphasis on the underlying organizational mechanisms and contextual conditions. Specifically, it investigates the mediating roles of green business strategy (GBS) and organizational support (OS), as well as the moderating effect of barriers to green implementation (BF).
Design/methodology/approach: A quantitative research design was employed using survey data collected from 280 employees working in manufacturing SMEs in Hanoi and surrounding provinces in Vietnam. The proposed research model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4, following a two-stage approach involving measurement and structural model assessment. Bootstrapping with 5,000 resamples was used to evaluate the significance of the hypothesized relationships.
Findings: The results reveal that transformational leadership influences EGB primarily through indirect mechanisms. Among its dimensions, idealized influence and inspirational motivation significantly enhance GBS, whereas intellectual stimulation and individualized consideration do not show significant effects. GBS and OS both exert positive and significant effects on EGB, with GBS emerging as the strongest predictor. Mediation analysis confirms that GBS and OS serve as complementary pathways linking leadership to behavior. However, the moderating effect of BF is not supported, suggesting that perceived barriers do not significantly weaken the impact of GBS on EGB.
Practical implications: The findings highlight the importance of visionary leadership, strategic alignment, and organizational support systems in driving green transformation in SMEs. Managers are encouraged to develop clear sustainability strategies and invest in supportive infrastructures to translate leadership intent into employee action.
Originality/value: This study contributes to the literature by providing a multi-level and mechanism-based perspective on green transformation. It extends transformational leadership theory by identifying dimension-specific effects, introduces a dual mediation framework, and challenges the assumed role of barriers in shaping sustainability outcomes, particularly in emerging economy contexts.