GREENING LEADERSHIP IN DEVELOPING ECONOMIES: LINKING ENVIRONMENTAL TRANSFORMATIONAL LEADERSHIP, GREEN SELF-EFFICACY, AND PSYCHOLOGICAL GREEN CLIMATE TO ENVIRONMENTAL PERFORMANCE

Abstract

Organizations and companies in underdeveloped countries are under intense pressure from stakeholders and government watchdogs to focus on improving the environmental performance. Despite this, the leadership responsible for transforming environmental outcomes through psychological mechanisms is absent.

Based on the Social Cognitive Theory, this study will explore how Environmental Transformational Leadership (ETL) directly impacting in enhancing the Environmental Performance (EP) through the mediating role and influence of Employee Green Self-Efficacy (EGS) and Psychological Green Climate (PGC).

Based on the quantitative and cross-sectional survey design, more than 300 employees took part in the questionnaire. The analysis was conducted using a partial least squares structural equation modeling (PLS-SEM) with bootstrapping (5,000 resamples). Results strongly favored the proposed framework as suggested in the research paper. ETL positively predicts EP and exerts a substantial positive effect on EGS, while EGS, in turn, significantly improves EP. Mediation analysis confirms that EGS partially mediates the ETL–EP relationship, indicating that leadership strengthens environmental performance primarily by enhancing employees’ confidence in their ability to carry out environmentally responsible tasks. Furthermore, moderation results show that PGC strengthens the effect of ETL on EGS, suggesting that environmentally transformational leadership is more effective when employees perceive the organizational context as supportive of environmental values, norms, and practices. Overall, the study advances the leadership–cognition–performance pathway by integrating a cognitive mediator and a contextual boundary condition, and it offers actionable implications for organizations in developing economies seeking to strengthen environmental performance through leadership development, employee empowerment, and climate-building interventions.