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CEO environmentally responsible leadership and firm environmental innovation: A socio-psychological perspective

Author

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  • Wang, Yanxia
  • Shen, Tao
  • Chen, Yang
  • Carmeli, Abraham

Abstract

Manufacturing firms face increasing pressure to seek innovative solutions to environmental perils. Addressing such challenges requires responsible leadership that embraces a normative and stewardship approach for environmentally sustainable system. However, the question of whether and how CEO environmentally responsible leadership can drive firm environmental innovation has yet to be addressed. We develop and test a serial mediation model that specifies socio-psychological mechanisms through which environmentally responsible CEOs influence firm environmental innovation. To test the model, we use a two-wave multi-source dataset of top- and middle-level managers in 125 manufacturing firms in China. We find that environmentally responsible CEOs drive environmental innovation by developing a sense of collective environmental identification, which facilitates middle-level managers’ engagement in the organizational citizenship behavior associated with a more sustainable environment. Our research delineates the power of CEOs’ responsible leadership and its potential to help organizations that face growing pressure to increase environmental innovation.

Suggested Citation

  • Wang, Yanxia & Shen, Tao & Chen, Yang & Carmeli, Abraham, 2021. "CEO environmentally responsible leadership and firm environmental innovation: A socio-psychological perspective," Journal of Business Research, Elsevier, vol. 126(C), pages 327-340.
    • Handle: RePEc:eee:jbrese:v:126:y:2021:i:c:p:327-340
    DOI: 10.1016/j.jbusres.2021.01.004
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    Citations

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    Cited by:

    1. Hui Lu & Weiting Xu & Shaohan Cai & Fang Yang & Qingqing Chen, 2022. "Does top management team responsible leadership help employees go green? The role of green human resource management and environmental felt‐responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 843-859, July.
    2. Taewoo Roh & Shufeng Simon Xiao & Byung Il Park, 2023. "Effects of open innovation on eco-innovation in meta-organizations: evidence from Korean SMEs," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2004-2028, November.
    3. Naveed Ahmad Faraz & Fawad Ahmed & Zhengde Xiong, 2024. "How firms leverage corporate environmental strategy to nurture green behavior: Role of multi‐level environmentally responsible leadership," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 243-259, January.
    4. Fangfang Zhao & Tae-Won Kang & Mingu Kang, 2022. "Linking Intellectual Leadership Practices to Sustainability Outcomes: Moderated Mediation Effect of Employees’ Multifunctionality," Sustainability, MDPI, vol. 14(7), pages 1-13, March.
    5. Wei Xuecheng & Qaisar Iqbal, 2022. "Ethical Leadership, Bricolage, and Eco-Innovation in the Chinese Manufacturing Industry: A Multi-Theory Perspective," Sustainability, MDPI, vol. 14(12), pages 1-15, June.
    6. Qiao, Penghua & Liu, Siting & Fung, Hung-Gay & Wang, Chen, 2024. "Corporate green innovation in a digital economy," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 870-883.
    7. Wunhong Su & Chun Guo & Xiaobao Song, 2022. "Media coverage, Environment Protection Law and environmental research and development: evidence from the Chinese-listed firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6953-6983, May.
    8. Xiaohua Li & Lina Ma & Salahuddin Khan & Xin Zhao, 2023. "The Role of Education and Green Innovation in Green Transition: Advancing the United Nations Agenda on Sustainable Development," Sustainability, MDPI, vol. 15(16), pages 1-20, August.
    9. Mehmet Yildiz & Nicola Pless & Semih Ceyhan & Rob Hallak, 2023. "Responsible Leadership and Innovation during COVID-19: Evidence from the Australian Tourism and Hospitality Sector," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    10. Hao Huang & Yaping Chang & Liyuan Zhang, 2023. "CEO's marketing experience and firm green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5211-5233, December.
    11. Chowdhury, Soumyadeb & Dey, Prasanta Kumar & Rodríguez-Espíndola, Oscar & Parkes, Geoff & Tuyet, Nguyen Thi Anh & Long, Dang Duc & Ha, Tran Phuong, 2022. "Impact of Organisational Factors on the Circular Economy Practices and Sustainable Performance of Small and Medium-sized Enterprises in Vietnam," Journal of Business Research, Elsevier, vol. 147(C), pages 362-378.
    12. Kaveh Asiaei & Neale G O'Connor & Omid Barani & Mahesh Joshi, 2023. "Green intellectual capital and ambidextrous green innovation: The impact on environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 369-386, January.
    13. Palmié, Maximilian & Rüegger, Stephanie & Holzer, Matthias & Oghazi, Pejvak, 2023. "The “golden” voice of “green” employees: The effect of private environmental orientation on suggestions for improvement in firms’ economic value creation," Journal of Business Research, Elsevier, vol. 156(C).
    14. Jin, Chenfei & Monfort, Abel & Chen, Feng & Xia, Neng & Wu, Bao, 2024. "Institutional investor ESG activism and corporate green innovation against climate change: Exploring differences between digital and non-digital firms," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    15. Mou Lin & Azura Abdullah Effendi & Qaisar Iqbal, 2022. "The Mechanism Underlying the Sustainable Performance of Transformational Leadership: Organizational Identification as Moderator," Sustainability, MDPI, vol. 14(23), pages 1-19, November.

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