ARTICLE

FOSTERING GREEN INNOVATION THE INTERPLAY OF TRANSFORMATIONAL LEADERSHIP ORGANIZATIONAL LEARNING AND CSR

06 Pages : 66-82

http://dx.doi.org/10.31703/gmsr.2024(IX-IV).06      10.31703/gmsr.2024(IX-IV).06      Published : Dec 2024

Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR

    CSR has gained much predominance in the previous decade in the various sectors of Pakistan. A quantitative research technique was used incorporating survey methodology for understanding the impact of transformational leadership in the promotion of  CSR practices in the banking sector of Pakistan. The primary objective of the study is to investigate the impact of transformational leadership on CSR practices while observing the mediating role of organizational learning. Moreover, green innovation is observed as a moderator between transformational leadership and organizational learning. Employees working in the CSR department of different banks in Pakistan were approached and 203 responses were collected. It shows significant results. This research helps in developing our comprehension regarding the banking sector of Pakistan and how well they inculcate CSR practices through transformational leadership. These insights offer practical implications for the enhancement of CSR-integrated strategies and the adoption of sustainable organizational practices.

    Corporate Social Responsibility, Transformational Leadership, Organizational Learning, Green Innovation
    (1) Rabia Azhar
    Doctoral Student, Institute of Business Administration, University of Punjab, Lahore, Punjab, Pakistan.
    (2) Sania Zahra Malik
    Professor, Institute of Business Administration, University of Punjab, Lahore, Punjab, Pakistan.
    (3) Zeshan Ahmer
    Assistant Professor, Institute of Business Administration, University of Punjab, Lahore, Punjab, Pakistan.
  • ABAZEED, R. A. M. 2018. Impact of transformational leadership style on organizational learning in the Ministry of Communication and Information Technology in Jordan. International Journal of Business and Social Science, 9, 118-129.

  • AJANAKU, O. J. & LUBBE, W. 2021. Applying transformational leadership in nursing through the lens of Kouzes and Posner's leadership practices. Gender and Behaviour, 19, 17788-17794.
  • Amadi, C., & Zhao, Q. (2020). Corporate Social Responsibility and Financial Performance: The Stakeholder Theory Perspective. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3919004
  • Ardito, L., & Dangelico, R. M. (2018). Firm Environmental Performance under Scrutiny: The Role of Strategic and Organizational Orientations. Corporate Social Responsibility and Environmental Management, 25(4), 426–440. https://doi.org/10.1002/csr.1470
  • Arshad, M. G., Anees, F., & Ullah, M. R. (2015). The impact of corporate social responsibility on firm’s financial performance. International Journal of Applied Research, 4(1), 9-28.
  • Bass, B. M., & Avolio, B. J. (1990). Developing Transformational Leadership: 1992 and beyond. Journal of European Industrial Training, 14(5). https://doi.org/10.1108/03090599010135122
  • Bass, B. M., & Avolio, B. J. (1996). Multifactor leadership questionnaire. Western Journal of Nursing Research, 18(3), 320-331.
  • Bass, B. M., & Riggio, R. E. (2006). Transformational leadership. In Psychology Press eBooks. https://doi.org/10.4324/9781410617095
  • Basu, K., & Palazzo, G. (2008). Corporate Social Responsibility: a process model of sensemaking. Academy of Management Review, 33(1), 122–136. https://doi.org/10.5465/amr.2008.27745504
  • Blahová, M., & Knápková, A. (2011). Effective strategic action: From formulation to implementation. Economics, Business, and Management, 2, 61-65.
  • Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. https://doi.org/10.1016/0007-6813(91)90005-g
  • Chen, Y., Chang, T., Lin, C., Lai, P., & Wang, K. (2016). The influence of proactive green innovation and reactive green innovation on green product development performance: The mediation role of Green Creativity. Sustainability, 8(10), 966. https://doi.org/10.3390/su8100966
  • Christmann, P. (2000). EFFECTS OF “BEST PRACTICES” OF ENVIRONMENTAL MANAGEMENT ON COST ADVANTAGE: THE ROLE OF COMPLEMENTARY ASSETS. Academy of Management Journal, 43(4), 663–680. https://doi.org/10.2307/1556360
  • Conway, J. M., & Lance, C. E. (2010). What Reviewers Should Expect from Authors Regarding Common Method Bias in Organizational Research. Journal of Business and Psychology, 25(3), 325–334. https://doi.org/10.1007/s10869-010-9181-6
  • Cramer, J. (2003). Learning about corporate social responsibility: The Dutch experience. IOS Press.
  • D’Amato, A., & Roome, N. (2009). Toward an integrated model of leadership for corporate responsibility and sustainable development: a process model of corporate responsibility beyond management innovation. Corporate Governance, 9(4), 421–434. https://doi.org/10.1108/14720700910984972
  • Data, I. Q., & Silverman, D. (2011). A guide to the principles of qualitative research. Sage Publications.
  • Day, D. V., & Dragoni, L. (2015). Leadership Development: An outcome-oriented review based on time and levels of analyses. Annual Review of Organizational Psychology and Organizational Behavior, 2(1), 133–156. https://doi.org/10.1146/annurev-orgpsych-032414-111328
  • De Oliveira, T. M. R. D., & Lacerda, C. D. (2010). Transformational leadership effectiveness in implementing corporate social responsibility strategies: An empirical study of the largest firms in Portugal. Universidade Técnica de Lisboa.
  • Denis, O. (2010). Corporate social responsibility of business: International experience and domestic practice. Bulletin of the UB NBU, 36-38. https://virtusinterpress.org/IMG/pdf/CORPORATE_SOCIAL_RESPONSIBILITY_IN_BANKS_AN_INTERNATIONAL_OVERVIEW.pdf
  • Dumont, J., Shen, J., & Deng, X. (2016). Effects of green HRM practices on employee workplace green behavior: the role of psychological green climate and employee green values. Human Resource Management, 56(4), 613–627. https://doi.org/10.1002/hrm.21792
  • Farooq, O., Payaud, M., Merunka, D., & Valette-Florence, P. (2013). The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms. Journal of Business Ethics, 125(4), 563–580. https://doi.org/10.1007/s10551-013-1928-3
  • Friedman, M. (1970). A Theoretical Framework for Monetary Analysis. Journal of Political Economy, 78(2), 193–238. http://www.jstor.org/stable/1830684
  • Fukukawa, K., Shafer, W. E., & Lee, G. M. (2007). Values and Attitudes Toward Social and Environmental Accountability: a Study of MBA Students. Journal of Business Ethics, 71(4), 381–394. https://doi.org/10.1007/s10551-005-3893-y
  • García‐Morales, V. J., Llorens‐Montes, F. J., & Verdú‐Jover, A. J. (2006). Antecedents and consequences of organizational innovation and organizational learning in entrepreneurship. Industrial Management & Data Systems, 106(1), 21–42. https://doi.org/10.1108/02635570610642940
  • Gil, A. J., Rodrigo-Moya, B., & Morcillo-Bellido, J. (2018). The effect of leadership in the development of innovation capacity. Leadership & Organization Development Journal, 39(6), 694–711. https://doi.org/10.1108/lodj-12-2017-0399
  • Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: A Risk Management perspective. Academy of Management Review, 30(4), 777–798. https://doi.org/10.5465/amr.2005.18378878
  • Haugh, H. M., & Talwar, A. (2010). How do corporations embed sustainability across the organization? Academy of Management Learning and Education, 9(3), 384–396. https://doi.org/10.5465/amle.9.3.zqr384
  • HAUSERMAN, C. P. & STICK, S. L. 2013. The leadership teachers want from principals: transformational. Canadian Journal of Education, 36, 184-203.
  • Hotho, J. J., Lyles, M. A., & Easterby‐Smith, M. (2015). The mutual impact of global strategy and organizational Learning: Current themes and future directions. Global Strategy Journal, 5(2), 85–112. https://doi.org/10.1002/gsj.1097
  • Huang, Y., Robertson, M. M., Lee, J., Rineer, J., Murphy, L. A., Garabet, A., & Dainoff, M. J. (2014). Supervisory interpretation of safety climate versus employee safety climate perception: Association with safety behavior and outcomes for lone workers. Transportation Research Part F Traffic Psychology and Behaviour, 26, 348–360. https://doi.org/10.1016/j.trf.2014.04.006
  • JARIKO, M. A., BØRSEN, T. & JHATIAL, A. A. 2016. CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN: ITS STATUS AND WAYS FORWARD. International Journal of Business & Public Administration, 13.
  • Jerez-Gómez, P., Céspedes-Lorente, J., & Valle-Cabrera, R. (2004). Organizational learning capability: a proposal of measurement. Journal of Business Research, 58(6), 715–725. https://doi.org/10.1016/j.jbusres.2003.11.002
  • Khan, M., Lockhart, J. C., & Bathurst, R. J. (2018). Institutional impacts on corporate social responsibility: a comparative analysis of New Zealand and Pakistan. International Journal of Corporate Social Responsibility, 3(1). https://doi.org/10.1186/s40991-018-0026-3
  • Khan, S. N., & Riaz, Z. (2023). Exploring the Relevance of Organizational Learning for CSR Strategy Implementation: Empirical Evidence from a Developing Economy. Journal of the Knowledge Economy, 15(1), 3844–3871. https://doi.org/10.1007/s13132-023-01226-8
  • KOECH, P. M. & NAMUSONGE, G. 2012. The effect of leadership styles on organizational performance at state corporations in Kenya. International journal of business and commerce, 2, 1-12.
  • Kolk, A. (2015). The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business, 51(1), 23–34. https://doi.org/10.1016/j.jwb.2015.08.010
  • Lee, M., Fairhurst, A., & Wesley, S. (2009). Corporate Social Responsibility: A review of the top 100 US retailers. Corporate Reputation Review, 12(2), 140–158. https://doi.org/10.1057/crr.2009.10
  • Liao, S., Chen, C., Hu, D., Chung, Y., & Liu, C. (2017). Assessing the influence of leadership style, organizational learning and organizational innovation. Leadership & Organization Development Journal, 38(5), 590–609. https://doi.org/10.1108/lodj-11-2015-0261
  • Ma, X., Jiang, P., & Jiang, Q. (2020). Research and application of association rule algorithm and an optimized grey model in carbon emissions forecasting. Technological Forecasting and Social Change, 158, 120159. https://doi.org/10.1016/j.techfore.2020.120159
  • Maignan, I., & Ferrell, O. C. (2000). Measuring corporate citizenship in two countries: The case of the United States and France. Journal of Business Ethics, 23(3), 283–297. https://doi.org/10.1023/a:1006262325211
  • Maon, F., Lindgreen, A., & Swaen, V. (2008). Designing and Implementing Corporate Social Responsibility: an integrative framework grounded in theory and practice. Journal of Business Ethics, 87(S1), 71–89. https://doi.org/10.1007/s10551-008-9804-2
  • March, J. G. (1963). A behavioral theory of the firm. Prentice-Hall.
  • Mehralian, G., Nazari, J. A., Zarei, L., & Rasekh, H. R. (2016). The effects of corporate social responsibility on organizational performance in the Iranian pharmaceutical industry: The mediating role of TQM. Journal of Cleaner Production, 135, 689–698. https://doi.org/10.1016/j.jclepro.2016.06.116
  • Melay, I., & Kraus, S. (2012). Green entrepreneurship: Definitions of related concepts. International Journal of Strategic Management, 12, 1-12.
  • Melay, I., O’Dwyer, M., Kraus, S., & Gast, J. (2017). Green entrepreneurship in SMEs: a configuration approach. International Journal of Entrepreneurial Venturing, 9(1), 1. https://doi.org/10.1504/ijev.2017.10003516
  • Ming, W. W. P., Tee, N. E., & Hua, C. C. (2018). Transformational leadership, motivation, and organizational commitment towards corporate social responsibility in the banking service industry, Sarawak. Global Business and Management Research, 10, 58-70.
  • Newell, P., & Frynas, J. G. (2007). Beyondcsr? Business, poverty and social justice: an introduction. Third World Quarterly, 28(4), 669–681. https://doi.org/10.1080/01436590701336507
  • OBIWURU, T. C., OKWU, A. T., AKPA, V. O. & NWANKWERE, I. A. 2011. EFFECTS OF LEADERSHIP STYLE ON ORGANIZATIONAL PERFORMANCE: A SURVEY OF SELECTED SMALL SCALE ENTERPRISES IN IKOSI-KETU COUNCIL DEVELOPMENT AREA OF LAGOS STATE, NIGERIA. Australian Journal of Business and Management Research, 01(07), 100–111. https://doi.org/10.52283/nswrca.ajbmr.20110107a11
  • Omboi, B. M. (2011). Factors affecting the implementation of strategic plans in government tertiary institutions: A survey of selected technical training institutes.
  • Osagie, E. R. (2016). Learning and corporate social responsibility: A study on the role of the learning organization, individual competencies, goal orientation, and the learning climate in the CSR adaptation process. Wageningen University and Research.
  • Papadas, K., Avlonitis, G. J., Carrigan, M., & Piha, L. (2018). The interplay of strategic and internal green marketing orientation on competitive advantage. Journal of Business Research, 104, 632–643. https://doi.org/10.1016/j.jbusres.2018.07.009
  • Parker, L. D. (2005). Social and environmental accountability research. Accounting Auditing & Accountability Journal, 18(6), 842–860. https://doi.org/10.1108/09513570510627739
  • Podsakoff, P. M., & Organ, D. W. (1986). Self-Reports in Organizational Research: Problems and Prospects. Journal of Management, 12(4), 531–544. https://doi.org/10.1177/014920638601200408
  • Rugimbana, R., Quazi, A., & Keating, B. (2008). Applying a consumer perceptual measure of corporate social responsibility. Journal of Corporate Citizenship, 2008(29), 61–74. https://doi.org/10.9774/gleaf.4700.2008.sp.00009
  • Sachs, G. (2007). Beyond the BRICs: A look at the next 11. In Beyond BRICS (pp. 161-164). Goldman Sachs Global Economic Group.
  • Sayed, S., Malik, I. R., Ahmed, M., & Ali, M. (2017). Does corporate social responsibility improve the firm’s financial performance: A theoretical perspective of agency and stakeholder theory by the financial sector of Pakistan. Journal of Contemporary Management Sciences, 3, 137-156.
  • Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire. Educational and Psychological Measurement, 66(4), 701–716. https://doi.org/10.1177/0013164405282471
  • Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach. John Wiley & Sons.
  • Siltaoja, M. E. (2013). Revising the Corporate Social Performance Model - towards knowledge creation for sustainable development. Business Strategy and the Environment, 23(5), 289–302. https://doi.org/10.1002/bse.1783
  • Simpson, W. G., & Kohers, T. (2002). The link between corporate social and financial performance: Evidence from the banking industry. Journal of Business Ethics, 35(2), 97–109. https://doi.org/10.1023/a:1013082525900
  • Smith, N. C. (2003). Corporate social responsibility: whether or how? California Management Review, 45(4), 52–76. https://doi.org/10.2307/41166188
  • Suganthi, L. (2019). Examining the relationship between corporate social responsibility, performance, employees’ pro-environmental behavior at work with green practices as mediator. Journal of Cleaner Production, 232, 739–750. https://doi.org/10.1016/j.jclepro.2019.05.295
  • Sun, P. Y., & Anderson, M. H. (2011). The combined influence of top and middle management leadership styles on absorptive capacity. Management Learning, 43(1), 25–51. https://doi.org/10.1177/1350507611405116
  • Szegedi, K., Khan, Y., & Lentner, C. (2020). Corporate Social Responsibility and Financial Performance: Evidence from Pakistani Listed Banks. Sustainability, 12(10), 4080. https://doi.org/10.3390/su12104080
  • Tang, Z., & Tang, J. (2017). Stakeholder corporate social responsibility orientation congruence, entrepreneurial orientation and environmental performance of Chinese small and medium‐sized enterprises. British Journal of Management, 29(4), 634–651. https://doi.org/10.1111/1467-8551.12255
  • Teixeira, G. F. G., & Canciglieri, O., Junior. (2019). How to make strategic planning for corporate sustainability? Journal of Cleaner Production, 230, 1421–1431. https://doi.org/10.1016/j.jclepro.2019.05.063
  • Tushman, M., & Nadler, D. (1986). Organizing for innovation. California Management Review, 28(3), 74–92. https://doi.org/10.2307/41165203
  • Ullah, M. S. (2013). Corporate social responsibility practices in the banking sector in Bangladesh—An assessment. Bank Parikrama, XXXVIII(3 & 4), 129-152.
  • Vallaster, C., Kraus, S., Kailer, N., & Baldwin, B. (2018). Responsible entrepreneurship: outlining the contingencies. International Journal of Entrepreneurial Behaviour & Research, 25(3), 538–553. https://doi.org/10.1108/ijebr-04-2018-0206
  • Van de Ven, A. H. (1986). Central problems in the management of innovation. Management Science, 32(5), 590-607.
  • Vera, D., & Crossan, M. (2004). Strategic leadership and organizational learning. Academy of Management Review, 29(2), 222–240. https://doi.org/10.5465/amr.2004.12736080
  • Wafula, J. (2012). Corporate social responsibility: A perspective of Kenyan firms. International Journal of Research in Marketing, Economics, and Commerce, 2, 38-52.
  • Wolff, A., Gondran, N., & Brodhag, C. (2018). Integrating corporate social responsibility into conservation policy. The example of business commitments to contribute to the French National Biodiversity Strategy. Environmental Science & Policy, 86, 106–114. https://doi.org/10.1016/j.envsci.2018.05.007
  • Xiang, C., Chen, F., Jones, P., & Xia, S. (2020). The effect of institutional investors’ distraction on firms’ corporate social responsibility engagement: evidence from China. Review of Managerial Science, 15(6), 1645–1681. https://doi.org/10.1007/s11846-020-00387-z
  • Xiang, C., Chen, F., Jones, P., & Xia, S. (2020). The effect of institutional investors’ distraction on firms’ corporate social responsibility engagement: evidence from China. Review of Managerial Science, 15(6), 1645–1681. https://doi.org/10.1007/s11846-020-00387-z
  • Yadav, P. L., Han, S. H., & Kim, H. (2016). Sustaining competitive advantage through corporate environmental performance. Business Strategy and the Environment, 26(3), 345–357. https://doi.org/10.1002/bse.1921
  • Yamak, S., & Süer, Ö. (2005). State as a stakeholder. Corporate Governance, 5(2), 111–120. https://doi.org/10.1108/14720700510562695
  • Yu, W., Ramanathan, R., & Nath, P. (2016). Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability. Technological Forecasting and Social Change, 117, 160–169. https://doi.org/10.1016/j.techfore.2016.12.005
  • Yu, W., Ramanathan, R., & Nath, P. (2016). Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability. Technological Forecasting and Social Change, 117, 160–169. https://doi.org/10.1016/j.techfore.2016.12.005
  • Yusof, M. A. M. (2016). Challenges in CSR engagements: The case of Bank Islam. Information: An International Interdisciplinary Journal, 19, 2949-2954.
  • Zahra, S. A., & LaTour, M. S. (1987). Corporate social responsibility and organizational effectiveness: A multivariate approach. Journal of Business Ethics, 6(6), 459–467. https://doi.org/10.1007/bf00383288
  • Zhang, Y., Sun, J., Yang, Z., & Li, S. (2018). Organizational learning and green innovation: Does environmental proactivity matter? Sustainability, 10(10), 3737. https://doi.org/10.3390/su10103737
  • Zou, Z., Liu, Y., Ahmad, N., Sial, M. S., Badulescu, A., Zia-Ud-Din, M., & Badulescu, D. (2021). What Prompts Small and Medium Enterprises to Implement CSR? A Qualitative Insight from an Emerging Economy. Sustainability, 13(2), 952. https://doi.org/10.3390/su13020952

Cite this article

    APA : Azhar, R., Malik, S. Z., & Ahmer, Z. (2024). Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR. Global Management Sciences Review, IX(IV), 66-82. https://doi.org/10.31703/gmsr.2024(IX-IV).06
    CHICAGO : Azhar, Rabia, Sania Zahra Malik, and Zeshan Ahmer. 2024. "Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR." Global Management Sciences Review, IX (IV): 66-82 doi: 10.31703/gmsr.2024(IX-IV).06
    HARVARD : AZHAR, R., MALIK, S. Z. & AHMER, Z. 2024. Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR. Global Management Sciences Review, IX, 66-82.
    MHRA : Azhar, Rabia, Sania Zahra Malik, and Zeshan Ahmer. 2024. "Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR." Global Management Sciences Review, IX: 66-82
    MLA : Azhar, Rabia, Sania Zahra Malik, and Zeshan Ahmer. "Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR." Global Management Sciences Review, IX.IV (2024): 66-82 Print.
    OXFORD : Azhar, Rabia, Malik, Sania Zahra, and Ahmer, Zeshan (2024), "Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR", Global Management Sciences Review, IX (IV), 66-82
    TURABIAN : Azhar, Rabia, Sania Zahra Malik, and Zeshan Ahmer. "Fostering Green Innovation: The Interplay of Transformational Leadership, Organizational Learning and CSR." Global Management Sciences Review IX, no. IV (2024): 66-82. https://doi.org/10.31703/gmsr.2024(IX-IV).06