Impact of Green Transformational Leadership on Organizational Performance with Mediating Effect of Green HR Practices

Abstract

The effect of Green Transformational Leadership (GTL) on organizational performance is investigated with emphasis on mediating Green Human Resource (Green HR) practices, specifically green recruitment and selection. The paper explores ways in which leadership and HR strategies can propel sustainability and promote superior performance results within Pakistan’s banking industry. The study used a quantitative research design on a sample of 120 employees in (mid and top) management positions who were solicited by a structured questionnaire. SPSS was used to analyze data to test hypotheses concerning proposed relationships among the variables. Descriptive statistics, reliability and validity analysis, correlation and regression analysis were the key statistics techniques which were used to analyze the data. The results find that GTL has a positive influence on organizational performance directly and indirectly by Green HR practices. Green recruitment and selection arise as important mediators of GTL, increasing its positive impact on performance measures. Its results highlight the significance of coordinating leadership behaviors with sustainable HR strategies in order to attain superior organisational outcomes. Based on their relevance in sustainability contexts, this research contributes to the theoretical frameworks of Transformational Leadership Theory, the Resource Based View (RBV) and the Ability Motivation Opportunity (AMO) Theory. Moreover, the research has practical implications for organizations, including need of leadership development, green HR practice integration and employee engagement to create a sustainable culture. Although, the study draws some limitations, namely the cross sectional design of study, relying on self reported data and study being restricted to Pakistani banking sector, which may limit the ability to generalize the findings to broader markets. Therefore, future research directions comprise of longitudinal studies, studying other industries and geographic regions and further study of Green HR practices.