Ledi, Klenam Ko bla; P ah, Joana; Xemalo dzo, Enya Ameza –; Bandoma, S ephen
A icle
En i onmen al pe o mance eclaimed: unleashing he
powe o g een ans o ma ional leade ship and dynamic
capabili y
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En i onmen al pe o mance eclaimed:
unleashing he powe o g een ans o ma ional
leade ship and dynamic capabili y
Klenam Ko bla Ledi, Joana P ah, Enya Ameza – Xemalo dzo & S ephen
Bandoma
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ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS |
RESEARCH ARTICLE
Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2378922
En i onmen al pe o mance eclaimed: unleashing he powe o
g een ans o ma ional leade ship and dynamic capabili y
Klenam Ko bla Ledia , Joana P aha, Enya Ameza – Xemalo dzoa and S ephen
Bandomab
aDepa men o Ma ke ing and Co po a e s a egy, Knus Business school, Kwame nk umah uni e si y o science
echnology, Kumasi, ghana; bDepa men o eache educa ion, Kwame nk umah uni e si y o science echnology, Kumasi,
ghana
ABSTRACT
This s udy examines he media ing ole o g een inno a ion in he ela ionship be ween
g een ans o ma ional leade ship and en i onmen al pe o mance and simul aneously
posi s g een dynamic capabili y as a pi o al bounda y condi ion. A su ey ques ionnai e
was adminis e ed o 306 i ms. The collec ed da a we e analyzed using Amos, and
s uc u al equa ion modelling was employed o es he hypo heses. The indings e eal
a signi ican posi i e ela ionship be ween g een ans o ma ional leade ship and
en i onmen al pe o mance. This s udy also demons a es ha g een ans o ma ional
leade ship has an indi ec impac on en i onmen al pe o mance h ough g een
inno a ion, and his ela ionship is ancho ed by a high le el o g een dynamic capabili y.
This s udy demons a es ha g een dynamic capabili y se es as a holis ic ca alys ha
ampli ies he impac o g een ans o ma ional leade ship on g een inno a ion and
simul aneously ca alyzes he ansla ion o g een inno a ion in o be e en i onmen al
pe o mance, ul ima ely o e ing esh insigh in o en i onmen al managemen puzzles.
1. In oduc ion
The en i onmen al c isis ha bede ils mos coun ies a ound he wo ld necessi a es a shi in o ganisa-
ional beha iou owa ds sus ainable p ac ices. Leade ship plays a c ucial ole in d i ing his change.
T ans o ma ional leade ship, known o inspi ing and empowe ing employees, has demons ably impac ed
employee engagemen (Kim e al., 2019; Peng e al., 2021) and o ganisa ional pe o mance (Alzghoul
e al., 2024; Xie e al., 2019). Howe e , he u gency o en i onmen al sus ainabili y demands a pa adigm
shi wi hin o ganiza ions. G een ans o ma ional leade ship, a new wa e o leade ship, has eme ged as
a c i ical leade ship s yle o p omo ing sus ainabili y wi hin o ganiza ions. G een ans o ma ional lead-
e s encou age employees o adop en i onmen ally iendly p ac ices and suppo he de elopmen o
g een ini ia i es (Çop, e al., 2021; Peng e al., 2021; Pham e al., 2019; Singh e al., 2020). As such, ecen
s udies ha e begun o link g een ans o ma ional leade ship wi h enhanced en i onmen al pe o mance
(Kim e al., 2019; Sun e al., 2022), sugges ing ha leade s who p io i ise g een alues can signi ican ly
impac an o ganisa ion’s sus ainabili y pe o mance.
Despi e he bu geoning in e es in GTL (Cui e al., 2023; Mi al & Dha , 2016; Peng e al., 2021), he e
emains a signi ican gap in unde s anding he mechanisms h ough which GTL a ec s en i onmen al
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup.
CONTACT Klenam Ko bla Ledi [email p o ec ed] Depa men o Ma ke ing and Co po a e s a egy, Kwame nk umah uni e si y
o science echnology, Business school, Knus , P.M.B Kumasi, ghana.
h ps://doi.o g/10.1080/23311975.2024.2378922
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
Recei ed 1 Feb ua y 2024
Re ised 4 June 2024
Accep ed 6 July 2024
KEYWORDS
G een ans o ma ional
leade ship; g een
inno a ion; en i onmen al
pe o mance; g een
dynamic capabili y;
manu ac u ing
REVIEWING EDITOR
Sand a Al es, Highe
Ins i u e o Accoun ing
and Adminis a ion,
Uni e si y o A ei o,
Po ugal
SUBJECTS
En i onmen & Business;
Leade ship S a egy;
School Leade s &
Manage s; Inno a ion
Managemen
2 K. K. LEDI ETAL.
pe o mance. While s udies ha e inc easingly acknowledged a posi i e di ec ela ionship be ween GTL
and en i onmen al pe o mance (Begum e al., 2022; Singh e al., 2020; Sun e al., 2022), he unde lying
mechanisms and condi ions unde which his ela ionship is mos e ec i e emain unde explo ed.
Speci ically, he e is a lack o unde s anding ega ding he media ing ole o g een inno a ion— he
de elopmen and implemen a ion o new p oduc s, p ocesses, and p ac ices ha educe en i onmen al
impac (Chan e al., 2016; Chen & Chang, 2013)—in his ela ionship. We posi ha g een ans o ma-
ional leade s cul i a e an en i onmen ha encou ages he explo a ion and adop ion o hese inno a-
ions (Begum e al., 2022; Chen e al., 2014; Cui e al., 2023). This, in u n, di ec ly con ibu es o imp o ed
en i onmen al pe o mance. Howe e , he ex en o which g een inno a ion se es as a mechanism
h ough which GTL a ec s en i onmen al pe o mance has no been ully examined.
Addi ionally, he e is limi ed esea ch on he bounda y condi ions unde which g een ans o ma ional
leade ship is mos e ec i e. Mo e speci ically, i is unclea how g een ans o ma ional leade ship ans-
la es in o en i onmen al pe o mance and which o ganisa ional p ac ices o capabili ies a e essen ial o
maximising his e ec . While g een inno a ion plays a c ucial media ing ole, we u he posi ha he
e ec i eness o his media ion is likely mode a ed by he o ganisa ion’s g een dynamic capabili y.
O ganisa ions wi h a obus g een dynamic capabili y a e be e equipped o le e age he leade ship’s
ision and ansla e g een ideas in o inno a ions. Ul ima ely, bo h g een inno a ion and g een dynamic
capabili y con ibu e o imp o ed en i onmen al pe o mance. The e o e, he s udy p oposes ha he
s eng h o he ela ionship be ween g een ans o ma ional leade ship, g een inno a ion, and en i on-
men al pe o mance may a y depending on an o ganisa ion’s g een dynamic capabili y, which, howe e ,
has ecei ed negligible a en ion in he li e a u e. The cu en s udy is mo i a ed by hese knowledge
gaps and aims o add ess he ollowing esea ch ques ions: ‘(1) To wha ex en is g een ans o ma ional
leade ship able o ancho en i onmen al pe o mance h ough g een inno a ion, and (2) wha di e en-
ial e ec does g een ans o ma ional leade ship ha e on g een inno a ion as well as wha di e en ial
e ec does g een inno a ion ha e on en i onmen al pe o mance unde di e en condi ions o g een
dynamic capabili y?’
Consequen ly, his s udy will con ibu e o he li e a u e in wo ways. While he di ec ela ionship
be ween GTL and en i onmen al pe o mance has been inc easingly acknowledged (Begum e al., 2022;
Chen e al., 2014; Çop e al., 2021; Singh e al., 2020), he mechanisms h ough which GTL in luences
en i onmen al pe o mance emain unde explo ed. The s udy demons a es how g een ans o ma ional
leade ship impac s en i onmen al pe o mance di ec ly and indi ec ly by es ablishing he ole o g een
inno a ion as a media o . The indings indica e ha leade s who exhibi g een ans o ma ional beha iou
posi i ely impac inno a ion e o s in o ganisa ions, which ul ima ely impac s a i m’s en i onmen al
pe o mance. Secondly, his s udy iden i ied g een dynamic capabili y as a c ucial enabling ac o . When
combined wi h dynamic g een capabili y, i ms can unleash hei g een inno a ion by capi alising on
hei abili y o sense, seize, and econs uc in e nal and ex e nal o ganisa ional esou ces. Thus, o gani-
sa ions aiming o enhance en i onmen al pe o mance and sus ainable inno a ion should s a egically
in es in de eloping and enhancing hei g een dynamic capabili y. This is because g een ans o ma-
ional leade ship and g een inno a ion can syne gis ically s imula e en i onmen al pe o mance unde
he auspices o g een dynamic capabili y. This s udy ex ends he dynamic capabili ies amewo k o he
g een con ex , p oposing GDC as a c i ical mode a o ha enhances he in luence o GTL on en i on-
men al pe o mance h ough g een inno a ion. This s udy expands and o e s no el pe spec i es in he
li e a u e by employing uppe -echelon and dynamic capabili y heo ies o explain he an eceden s o
en i onmen al pe o mance, ul ima ely p o iding ich insigh in o en i onmen al managemen puzzles.
The emainde o he pape is o ganised as ollows: heo y and hypo hesis de elopmen , me hod and
ma e ial, esul s, discussion and conclusion, and implica ions o he s udy.
2. Li e a u e e iew and hypo hesis de elopmen
2.1. Li e a u e e iew
En i onmen al sus ainabili y has become a c i ical ocus o o ganisa ions wo ldwide due o inc easing
egula o y p essu es, s akeholde demands, and he u gen need o mi iga e clima e change. O ganisa ions
COGENT BUSINESS & MANAGEMENT 3
wi h s ong en i onmen al pe o mance no only mee egula o y equi emen s bu also achie e com-
pe i i e ad an ages h ough cos sa ings and enhanced co po a e epu a ion (Bha e al., 2024; Sa wa
e al., 2023). G een ans o ma ional leade ship has eme ged as a i al leade ship s yle ha p omo es
en i onmen al esponsibili y and d i es o ganisa ions owa ds sus ainable p ac ices. GTL in ol es leade s
who inspi e, mo i a e, and suppo hei employees o adop en i onmen ally iendly p ac ices and pu -
sue sus ainabili y goals (Awan e al., 2023; Hani e al., 2023; Niazi e al., 2023; Sachde a & Singh, 2024).
The uppe -echelon heo y con ends ha he ai s and alues o op execu i es ha e a signi ican impac
on s a egic decision-making in o ganisa ions (Ca pen e e al., 2004; Hamb ick and Mason, 1984). The
uppe -echelon heo y posi s ha op execu i es’ alues and belie s pe mea e h ough o ganisa ional lay-
e s, in luencing employees’ a i udes and beha io s. The s udy posi s ha op execu i es’ en i onmen al
alues and belie s shape he o ganisa ion’s s a egic o ien a ion, including i s en i onmen al commi men
and sus ainabili y p ac ices. G een ans o ma ional leade s le e age hei posi ions o shape o ganisa-
ional cul u e and policies. Leade s commi ed o sus ainabili y c ea e a cul u e ha alues and ewa ds
en i onmen al esponsibili y, os e ing widesp ead adop ion o g een p ac ices (Khan e al., 2023; Suliman
e al., 2023). G een ans o ma ional leade s inspi e and empowe employees o adop g een p ac ices,
u he con ibu ing o imp o ed en i onmen al pe o mance (Awan e al., 2023; Niazi e al., 2023; Pe ez
e al., 2023). G een ans o ma ional leade s also p io i ize in es men s in sus ainable echnologies, inno-
a ion in eco- iendly p ocesses, and pa ne ships ha enhance en i onmen al pe o mance. These s a-
egic decisions a e c i ical o d i ing he o ganisa ion owa ds be e en i onmen al pe o mance and a
sus ainable en i onmen . The e o e, he en i onmen al consciousness o op execu i es is mo e likely o
in luence an o ganisa ion’s commi men o g een ini ia i es and, subsequen ly, i s en i onmen al pe o -
mance. Thus, ecen s udies ha e highligh ed he posi i e impac o GTL on a ious o ganisa ional ou -
comes, including employee p o-en i onmen al beha iou , employee engagemen , and o ganisa ional
commi men o sus ainabili y (Ma & Ma, 2024; Pe ez e al., 2023; P iyada shini e al., 2023; S i as a a
e al., 2024; Suliman e al., 2023; Younis & Hussain, 2023).
While he ini ial esea ch on g een ans o ma ional leade ship is p omising, he e emains a c i ical
gap in ou unde s anding o i s ull impac . Speci ically, mos exis ing s udies on g een ans o ma ional
leade ship ha e ocused on i s di ec e ec s on o ganisa ional ou comes such as employee
p o-en i onmen al beha iou , o ganisa ional commi men , g een beha iou (e.g. Niazi e al., 2023; Pe ez
e al., 2023; Singh e al., 2020; P iyada shini e al., 2023; Cui e al., 2023; Khan e al., 2023), en i onmen al
pe o mance (e.g. Hani e al., 2023; Pe ez e al., 2023; Suliman e al., 2023; Younis & Hussain, 2023), sus-
ainable pe o mance (e.g. Khan e al., 2023), en i onmen al pe o mance (e.g. Hani e al., 2023; Pe ez
e al., 2023; Suliman e al., 2023; Younis & Hussain, 2023), sus ainable pe o mance (e.g. Khan e al., 2023)
and o e all pe o mance (e.g. Özgül & Zehi , 2023). Howe e , hese s udies o en o e look he pa hways
h ough which GTL in luences en i onmen al pe o mance and he condi ions unde which hese e ec s
a e maximized. Exis ing esea ch p ima ily ocuses on he ela ionship be ween GTL and en i onmen al
pe o mance (e.g. Bha e al., 2024; Tian e al., 2023), bu a clea unde s anding o he unde lying mech-
anisms is lacking. Pa icula ly as businesses ace inc easing p essu e o adop sus ainable p ac ices, iden-
i ying he mechanisms h ough which leade ship can in luence hese p ac ices becomes impe a i e. The
p ima y mo i a ion o his esea ch is o add ess hese c i ical gaps by p oposing a comp ehensi e
amewo k ha conside s he combined media ing and mode a ing e ec s o g een inno a ion and
g een dynamic capabili y. The s udy ex ends exis ing heo e ical amewo ks by in eg a ing he oles o
leade ship, inno a ion, and dynamic capabili ies in d i ing en i onmen al pe o mance. This in eg a i e
app oach p o ides a mo e holis ic unde s anding o he pa hways and condi ions ha d i e en i onmen-
al pe o mance and ul ima ely dis inguishes his s udy om p io s udies ha ha e ypically examined
hese cons uc s in isola ion. This adds dep h o he exis ing heo e ical amewo k by conside ing he
in e play o leade ship, inno a ion, and capabili y in d i ing sus ainabili y.
2.2. G een ans o ma ional leade ship and en i onmen al pe o mance
G een ans o ma ional leade ship (GTL) is a leade ship s yle ha emphasises he impo ance o en i on-
men al sus ainabili y and inspi es ollowe s o engage in p o-en i onmen al beha iou s (Awan e al.,
2023; Suliman e al., 2023; Younis & Hussain, 2023). This leade ship app oach can signi ican ly in luence
4 K. K. LEDI ETAL.
an o ganisa ion’s en i onmen al pe o mance. Fi s , GTL is cha ac e ised by he abili y o leade s o a ic-
ula e a clea , compelling ision o sus ainabili y (Hani e al., 2023; Niazi e al., 2023; Sachde a & Singh,
2024). GTL mobilises employees o achie e an o ganisa ion’s en i onmen al sus ainabili y goals by p o-
iding a clea ision (Bha e al., 2024; Pe ez e al., 2023; Singh e al., 2020). When leade s e ec i ely
communica e he impo ance o en i onmen al goals, hey inspi e employees o commi o hese goals
and in eg a e hem in o hei daily ac i i ies. This ensu es ha sus ainabili y becomes a co e o ganisa-
ional alue. G een ans o ma ional leade s hus in luence en i onmen al pe o mance by encou aging
g een beha iou s among employees (Çop e al., 2021; Cui e al., 2023; Pham e al., 2019; Tian e al.,
2023). G een ans o ma ional leade s inspi e and mo i a e employees o adop en i onmen ally iendly
beha iou s in he wo kplace. These beha iou s include ene gy conse a ion, pa icipa ing in was e educ-
ion ini ia i es, ecycling, and he use o sus ainable ma e ials. The p omo ion o g een beha iou s is
c i ical as i di ec ly impac s he o ganisa ion’s en i onmen al pe o mance (Awan e al., 2023; Chen &
Chang, 2013; Cui e al., 2023; Peng e al., 2021; Singh e al., 2020; Tian e al., 2023; Younis & Hussain, 2023).
G een ans o ma ional leade s also empowe hei employees by p o iding he necessa y esou ces,
aining, and suppo o engage in sus ainable p ac ices. This empowe men leads o inc eased employee
pa icipa ion in en i onmen al ini ia i es, os e ing a cul u e o con inuous imp o emen in en i onmen-
al pe o mance (Bha e al., 2024; Özgül & Zehi , 2023; Pe ez e al., 2023; Sun e al., 2022). Addi ionally,
he s udy a gues ha g een ans o ma ional leade s le e age beha iou al change mechanisms such as
in insic mo i a ion, commi men , and employee engagemen o d i e sus ainable p ac ices. The empha-
sis on in insic mo i a ion ensu es ha employees a e genuinely commi ed o en i onmen al goals,
a he han me ely complying wi h egula ions o ex e nal p essu es. This deep-sea ed commi men leads
o mo e sus ainable long- e m en i onmen al pe o mance.
The uppe -echelon heo y sugges s ha he cogni i e ames and alues o he op managemen
eam hea ily in luence a i m’s s a egic decision-making and long- e m di ec ion (Ca pen e e al., 2004;
Hamb ick and Mason, 1984). The alues and belie s held by op leade s signi ican ly impac he o gani-
sa ion’s s a egic di ec ion. Leade s wi h a s ong o ien a ion owa ds sus ainabili y a e mo e likely o
p io i ise and implemen g een ini ia i es (Cui e al., 2023; Khan e al., 2023). The s udy a gues ha g een
ans o ma ional leade s possessing en i onmen ally conscious alues and a deep unde s anding o eco-
logical issues a e mo e likely o p io i ise sus ainabili y in o ganisa ional s a egies. G een ans o ma-
ional leade s p io i ise en i onmen al esponsibili y, shaping o ganisa ional goals and p ac ices
acco dingly. Leade s who p io i ise en i onmen al sus ainabili y a e likely o in eg a e hese alues in o
he o ganisa ional mission and s a egies, p omo ing g een beha iou s and p ac ices ac oss he o gani-
sa ion, which in u n leads o imp o emen s in en i onmen al pe o mance. Thus, his s udy sugges s he
ollowing hypo hesis:
H1: GTL has a posi i e and signi ican ela ionship wi h en i onmen al pe o mance
2.3. The media ing ole o g een inno a ion be ween g een ans o ma ional leade ship and
en i onmen al pe o mance
In he p e ious sec ion, we es ablished ha g een ans o ma ional leade ship is a majo p edic o o
en i onmen al pe o mance (Bha e al., 2024; Kim e al., 2019; Pe ez e al., 2023; Singh e al., 2020;
Suliman e al., 2023; Sun e al., 2022; Younis & Hussain, 2023). Howe e , he e a e me hods o mecha-
nisms by which GTL can in luence en i onmen al pe o mance ha a e cu en ly no well unde s ood in
he academic li e a u e. The s udy sugges s ha g een inno a ion can ampli y he impac o g een ans-
o ma ional leade ship on en i onmen al pe o mance. The e o e, ou s udy posi s ha GTL p omo es
g een inno a ion, he eby enabling highe en i onmen al pe o mance. Ou posi ion is based on he
ollowing a gumen s:
G een ans o ma ional leade ship, cha ac e ised by leade s who inspi e and mo i a e ollowe s
owa ds en i onmen ally sus ainable p ac ices (Çop e al., 2021; Cui e al., 2023; Niazi e al., 2023; Suliman
e al., 2023), plays a pi o al ole in os e ing inno a i e and eco- iendly ini ia i es. G een ans o ma-
ional leade ship s imula es g een inno a ion by inspi ing c ea i i y, en i onmen al awa eness, and com-
mi men o sus ainabili y (Amui e al., 2017; Awan e al., 2023; Niazi e al., 2023; Tian e al., 2023). G een
ans o ma ional leade s s imula e inno a ion ocused on ecological solu ions, which d i es employees o
COGENT BUSINESS & MANAGEMENT 5
gene a e no el ideas and en i onmen ally iendly p ac ices. Empowe ed employees a e mo e likely o
engage in g een inno a ion, con ibu ing o he de elopmen o solu ions and s a egies ha enhance
en i onmen al pe o mance (Çop e al., 2021; Hani e al., 2023; Mi al & Dha , 2016; Peng e al., 2021;
S i as a a e al., 2024). In his ega d, GTL is a c ucial o ganisa ional componen ha suppo s en i on-
men ally iendly beha iou s and he esou ces equi ed o g een inno a ion, helping os e an en i on-
men ha os e s he de elopmen and applica ion o g een inno a ion.
The uppe -echelon heo y posi s ha he indi idual cha ac e is ics, expe iences, and alues o op
execu i es shape o ganisa ional s a egies and ou comes (Ca pen e e al., 2004; Hamb ick, 2007; Hamb ick
and Mason, 1984). This s udy a gues ha leade s’ alues and en i onmen al commi men shape hei
s a egic decisions. Leade s wi h s ong en i onmen al commi men s a e mo e likely o endo se and sup-
po g een inno a ion ini ia i es, which hey conside in eg al o achie ing sus ainabili y goals. Leade s
wi h a posi i e a i ude owa ds inno a ion a e mo e likely o emb ace inno a i e p ac ices and encou -
age hei inco po a ion in o o ganisa ional p ac ices o imp o e en i onmen al pe o mance. The e o e,
he s udy a gues ha g een ans o ma ional leade ship in luences en i onmen al pe o mance h ough
g een inno a ion, as g een ans o ma ional leade ship os e s he enhancemen o g een inno a ion,
he eby imp o ing en i onmen al pe o mance (Begum e al., 2022; S i as a a e al., 2024; Sun e al.,
2022; Tian e al., 2023). The s udy con ends ha , while g een ans o ma ional leade ship can a ec en i-
onmen al pe o mance, he deg ee o g een inno a ion can enhance his ela ionship. This s udy sug-
ges s ha :
H2: G een inno a ion media es he ela ionship be ween GTL and en i onmen al pe o mance
2.4. The mode a ing ole o g een dynamic capabili y on he ela ionship be ween g een
ans o ma ional leade ship and g een inno a ion
G een ans o ma ional leade ship emphasizes inspi ing and empowe ing employees o achie e sus ain-
abili y goals. GTL leade s a e cha ac e ized by hei ision o a sus ainable u u e, commi men o en i-
onmen al esponsibili y, and abili y o mo i a e and inspi e o he s o ake ac ion by channelling g een
inno a ion. The e o e, GTL has been widely ega ded as ha ing a posi i e e ec on g een inno a ion
(Begum e al., 2022; Chen e al., 2014; Chen & Chang, 2013; Cui e al., 2023; Mi al & Dha , 2016; Singh
e al., 2020). The s udy con ends ha while GTL plays a signi ican ole in os e ing g een inno a ion, he
p esence o g een dynamic capabili ies, which e e o an o ganiza ion’s capaci y o adap o changing
en i onmen al condi ions and de elop new g een p oduc s, se ices, and p ocesses, can u he inc ease
i s impac . Ou p oposi ion is based on he ollowing easons.
Fi s , g een dynamic capabili ies (GDC) p o ides he necessa y esou ces and capabili ies o imple-
men ing g een inno a ions. The dynamic capabili y heo y emphasizes he abili y o o ganiza ions o
adap , econ igu e, and de elop hei esou ces and capabili ies o na iga e dynamic and changing en i-
onmen s (Ba e o, 2010; Eisenha d & Ma in, 2000; Teece e al., 1997). O ganiza ions ha possess com-
pe ences, such as GDC, a e mo e capable o ansla ing sus ainabili y isions in o s a egic ac ions, such
as implemen ing inno a i e g een p ac ices. The GDC o e s he essen ial esou ces and abili ies o suc-
cess ully execu e en i onmen ally iendly inno a ions, gua an eeing ha he o ganiza ion’s commi men
o sus ainabili y is pu in o p ac ical ac ion. This includes op imizing eco- iendly p ocesses and de elop-
ing g een p oduc s (Chen & Chang, 2013; Dangelico e al., 2017; Di Ma co e al., 2020; Hung e al., 2010).
Mo eo e , businesses wi h g ea e le els o GDC a e mo e p o icien in acqui ing and e ec i ely u ilizing
en i onmen ally iendly o g een knowledge. This is because GDC enables he acquisi ion and assimila-
ion o ex e nal knowledge pe aining o en i onmen ally iendly echnologies and p ocesses, allowing
businesses o ind and assess a o able p ospec s o g een inno a ion (Dangelico e al., 2017; Zhang
e al., 2020; Zhu & Cô é, 2018).
Fu he mo e, GDC assis s i ms in adjus ing o e ol ing en i onmen al condi ions and gua an eeing
he e ec i eness o g een inno a ion o e ime. Dynamic capaci y heo y posi s ha he co po a e en i-
onmen unde goes con inuous change o easons such as globaliza ion and echnological ad ancemen
(Ba e o, 2010; Kim e al., 2018; Teece e al., 1997). To h i e in a dynamic en i onmen , o ganiza ions
mus cul i a e he capaci y o sense oppo uni ies and h ea s, capi alize on oppo uni ies and mi iga e
h ea s, and sus ain compe i i eness by imp o ing, in eg a ing, sa egua ding, and, i needed, eo ganizing
6 K. K. LEDI ETAL.
o econ igu ing hei in angible and angible esou ces (Amui e al., 2017; Dangelico e al., 2014; Hung
e al., 2010; Wu & Lin, 2018). This s udy posi s ha businesses ha possess GDC ha e supe io capabili-
ies o adap and e ol e. This is because GDC allows businesses o adjus o e ol ing en i onmen al
condi ions and ma ke equi emen s, gua an eeing he con inued ele ance and e ec i eness o hei
en i onmen ally iendly inno a ions (Dangelico e al., 2017; Di Ma co e al., 2020; Zhang e al., 2020; Zhu
& Cô é, 2018).
Fu he mo e, GDC p omo es coope a ion and exchange o knowledge among employees, os e ing
he c ea ion o cu ing-edge en i onmen ally iendly solu ions. O ganiza ions wi h highe le els o GDC
a e mo e capable o p omo ing coope a ion and sha ing knowledge, pa icula ly when suppo ed by
leade s who d i e en i onmen ally iendly ans o ma ions. GDC p omo es a cul u e o collabo a ion and
knowledge sha ing es ablished h ough g een ans o ma ional leade ship among employees, he eby
encou aging he exchange o ideas, which can lead o he de elopmen o mo e inno a i e g een solu-
ions (Chen e al., 2014; Dangelico e al., 2017; Lin and Chen, 2017; Wu & Lin, 2018; Zhang e al., 2020;
Zhu & Cô é, 2018). In e ec , his s udy posi s ha GDC is a c i ical capabili y o o ganiza ions ha wan
o achie e sus ainabili y and compe i i e ad an age in he ace o inc easing en i onmen al challenges.
O ganiza ions ha cul i a e GDC a e be e equipped o ha ness he bene i s o GTL and achie e signi -
ican en i onmen al pe o mance imp o emen s h ough g een inno a ion. This s udy sugges s he
ollowing:
H3: G een dynamic capabili ies mode a e he ela ionship be ween g een ans o ma ional leade ship and
g een inno a ion.
2.5. The mode a ing ole o g een dynamic capabili y on he ela ionship be ween g een
inno a ion and en i onmen al pe o mance
G een inno a ion is inc easingly being ecognized as a key d i e o en i onmen al pe o mance. S udies
ha e consis en ly shown a posi i e ela ionship be ween g een inno a ion and en i onmen al pe o -
mance (Albo -Mo an e al., 2016; Dubey e al., 2015; Kim e al., 2019; Rehman e al., 2021; Singh e al.,
2020; Xie e al., 2019). Fo example, Chen e al. (2006) ound ha g een inno a ion has a signi ican
posi i e e ec on en i onmen al pe o mance indica o s, such as ene gy consump ion, was e gene a ion,
and g eenhouse gas emissions. Whe eas g een inno a ion is associa ed wi h a i m’s en i onmen al pe -
o mance (Chan e al., 2016; Dangelico e al., 2017), he e ec o g een inno a ion on en i onmen al
pe o mance can be enhanced by ce ain con ingency ac o s. This s udy a gues ha he p esence o
g een dynamic capabili y (GDC) u he s eng hens he posi i e ela ionship be ween g een inno a ion
and en i onmen al pe o mance. Ou p emises a e based on he ollowing easons.
Fi s , GDC helps o ganiza ions iden i y and e alua e g een inno a ion oppo uni ies. Dynamic capabil-
i y heo y posi s ha o ganiza ions can achie e a compe i i e ad an age by de eloping and econ igu -
ing hei esou ces and capabili ies o adap o changing condi ions and exploi new oppo uni ies
(Ba e o, 2010; Eisenha d & Ma in, 2000; Kim e al., 2018). As GDC is an o ganiza ion’s abili y o adap
o changing en i onmen al condi ions and de elop new g een p oduc s, se ices, and p ocesses
(Dangelico e al., 2014; Wu & Lin, 2018; Zhang e al., 2020; Zhu & Cô é, 2018), o ganiza ions wi h high
le els o GDC a e be e able o iden i y and implemen g een inno a ions and a e he e o e mo e likely
o achie e signi ican en i onmen al imp o emen s. Fi ms can unleash hei g een inno a i eness by cap-
i alizing on hei capabili y o sense, seize, and econs uc in e nal and ex e nal o ganiza ional esou ces
when coalesced wi h dynamic g een capabili y.
Second, GDC enhances an o ganiza ion’s abili y o abso b and u ilize ex e nal knowledge ela ed o
g een echnologies and p ac ices. This knowledge is c ucial o de eloping and implemen ing e ec i e
g een inno a ion (Di Ma co e al., 2020; Hung e al., 2010; Lin and Chen, 2017; Zhang e al., 2020). I
acili a es he abso p ion and in eg a ion o ex e nal knowledge ela ed o g een echnologies and p ac-
ices. O ganiza ions wi h s ong GDC can e ec i ely scan he en i onmen o eme ging g een solu ions,
adap hem o hei speci ic needs, and in eg a e hem in o hei ope a ions. G een dynamic capabili ies
make i easie o combine, c ea e, and econ igu e he in e nal and ex e nal esou ces ha a e impo an
o p o ec ing he en i onmen (Wu & Lin, 2018; Zhu & Cô é, 2018).
COGENT BUSINESS & MANAGEMENT 7
Thi d, GDC acili a es he implemen a ion o g een inno a ions by p o iding necessa y esou ces and
capabili ies. G een dynamic capabili y (GDC) plays a c ucial ole in acili a ing he implemen a ion o
g een inno a ion by p o iding o ganiza ions wi h he necessa y esou ces and capabili ies (Di Ma co
e al., 2020; Lin and Chen, 2017; Zhang e al., 2020). Fi ms ha cul i a e GDC can e ec i ely iden i y,
e alua e, and implemen g een inno a ions, ul ima ely achie ing supe io en i onmen al pe o mance.
O ganiza ions ha cul i a e GDC a e be e equipped o iden i y, implemen , and bene i om g een
inno a ions, ul ima ely achie ing supe io en i onmen al pe o mance. The e o e, his s udy pos ula es
ha he ela ionship be ween g een inno a ion and en i onmen al pe o mance is con ingen on he
le el o a i m’s g een dynamic capabili y. This s udy sugges s he ollowing:
H4: G een dynamic capabili ies mode a e he ela ionship be ween g een inno a ion and en i onmen al
pe o mance.
This s udy adop s a dual heo e ical amewo k, inco po a ing he uppe echelon and dynamic capa-
bili y heo ies as a basis o de eloping a concep ual amewo k, as depic ed in Figu e 1. Figu e 1 illus-
a es he hypo hesized pa hs in his s udy. H1 ep esen ed he di ec ela ionship be ween g een
ans o ma ional leade ship and en i onmen al pe o mance. H2 ep esen s he media ing ole o g een
inno a ion in he ela ionship be ween ans o ma ional leade ship and en i onmen al pe o mance. H3
ep esen s he mode a ing ole o g een dynamic capabili y in he nexus be ween g een ans o ma ional
leade ship and g een inno a ion. In he ou h hypo hesis (H4) posi s ha g een dynamic capabili y also
has a mode a ing ole in he associa ion be ween g een inno a ion and en i onmen al pe o mance.
3. Me hod
3.1. Sampling p ocedu e
The s udy adop ed a quan i a i e app oach and, he e o e, used a ques ionnai e o collec da a. The
s udy es ed he hypo heses using a sample o manu ac u ing i ms in Ghana. Acc a, Ghana’s capi al ci y,
which houses mos manu ac u ing i ms in he coun y, aces signi ican ai pollu ion challenges ha
pose heal h isks o esiden s and hinde en i onmen al sus ainabili y. The ci y’s ai quali y, o ins ance,
consis en ly anks among he wo s in he wo ld, wi h pa icula e ma e (PM) le els exceeding he Wo ld
Heal h O ganiza ion’s (WHO) guidelines (IQAi , 2023; Odoi, 2021), placing en i onmen al pe o mance a
he o e on o p io i ies and conce ns o co po a ions, go e nmen s, NGO’s, consume s, and in es o s.
The e o e, he e is an u gen need o eclaim sus ainable business p ac ices and add ess en i onmen al
issues in Ghana. We d ew he sampling ame om he Ghana En e p ise Agency, which has an es i-
ma ed popula ion o 5000. Based on Mo gan and K ejcie’s (1970) sampling o mulas, he s udy andomly
selec ed 500 i ms and used a key o ma app oach o dis ibu e ques ionnai es o he selec ed i ms’
senio execu i es (CEOs and owne manage s). Top execu i es, who a e mainly CEOs o manage s, ha e
be e knowledge o he i m’s ope a ions and o en make s a egic decisions on i s behal .
H3 H4
H2
H1
En i onmen al
pe o mance
G een inno a ion
G een
ans o ma ional
leade ship
G een dynamic capabili y
Figu e 1. he concep ual amewo k.
14 K. K. LEDI ETAL.
ideas. They need obus p ocesses o e alua ing, selec ing, and implemen ing hese ideas o ensu e hey
ansla e in o be e en i onmen al pe o mance.
Gi en he demons a ed ela ionships in his s udy, o ganisa ions should s a egically ocus on com-
bining leade ship, inno a ion, and dynamic capabili ies o enhance en i onmen al pe o mance. G een
ans o ma ional leade ship helps o c ea e a cul u e o inno a ion and sus ainabili y, whe eas g een
dynamic capabili y acili a es he implemen a ion o new g een ideas and achie es en i onmen al pe -
o mance. This sugges s ha o ganisa ional leade s play a pi o al ole in aligning g een inno a ion wi h
en i onmen al pe o mance. Leade ship alignmen gua an ees he s a egic gene a ion and deploymen
o g een inno a ions o op imal en i onmen al impac . Thus, o ganisa ions aiming o enhanced en i-
onmen al pe o mance and sus ainable inno a ion should s a egically in es in de eloping and enhanc-
ing hei g een dynamic capabili ies. This in ol es c ea ing s uc u es, p ocesses, and sys ems ha allow
o agile esou ce alloca ion, adap a ion o changing en i onmen al con ex s, and seamless in eg a ion o
g een ini ia i es in o he o ganisa ional s a egy.
6.2. Theo e ical implica ion
This s udy o e s signi ican heo e ical con ibu ions o he en i onmen al pe o mance li e a u e (e.g.
Alzghoul e al., 2024; Çop e al., 2021). Fi s ly, he s udy demons a es he posi i e in luence o g een
ans o ma ional leade ship on en i onmen al pe o mance. This inding unde sco es he c i ical ole
leade s play in d i ing a i m’s en i onmen al sus ainabili y e o s. The s udy aligns wi h uppe -echelons
heo y by highligh ing he impac o execu i e g een leade ship on en i onmen al pe o mance. This
in eg a ion sugges s ha op-le el execu i es’ en i onmen al o ien a ion ansla es in o s a egic ac ion.
They con igu e dynamic capabili ies o enhance he o ganisa ion’s esponsi eness o sus ainabili y chal-
lenges. Second, his s udy u he con ibu es o he g een inno a ion li e a u e (e.g. Albo -Mo an e al.,
2016; Cui e al., 2023) by iden i ying g een inno a ion as a key media ing mechanism in he ela ionship
be ween g een ans o ma ional leade ship and en i onmen al pe o mance. Ou indings emphasise he
c i ical ole o os e ing g een inno a ion o ansla e he e ec s o g een ans o ma ional leade ship
in o imp o ed en i onmen al pe o mance o o ganisa ions.
Mo eo e , his esea ch goes beyond exis ing li e a u e by p oposing a comp ehensi e heo e ical
model ha conside s he bounda y condi ions in luencing g een inno a ion as well as en i onmen al
pe o mance concu en ly. While p io s udies ha e ex ensi ely in es iga ed g een inno a ion (Begum
e al., 2022; Khan & Johl, 2019) and en i onmen al pe o mance (Kim e al., 2019; Rehman e al., 2021)
independen ly, a gap exis s in unde s anding he speci ic ac o s mode a ing hese ela ionships. Ou
s udy add esses his gap by empi ically examining g een dynamic capabili y as a bounda y condi ion. We
a gue ha his capabili y ac s as a bounda y condi ion, in luencing he s eng h o he ela ionship
be ween g een ans o ma ional leade ship and g een inno a ion, as well as he impac o g een inno-
a ion on en i onmen al pe o mance. This mul i ace ed app oach o e s a mo e obus and comp ehen-
si e amewo k o unde s anding how i ms can achie e en i onmen al pe o mance, ul ima ely o e ing
a esh pe spec i e on sus ainabili y li e a u e. Schola s ha e widely explo ed dynamic capabili ies
(Dangelico e al., 2017; Di Ma co e al., 2020), bu his s udy in oduces he concep o g een dynamic
capabili y, highligh ing i s c ucial ole in enhancing he impac o g een ans o ma ional leade ship on
g een inno a ion and g een inno a ion’s in luence on en i onmen al pe o mance. This ex ension high-
ligh s he need o o ganisa ions o inno a e and dynamically manage esou ces in a manne ha con-
ibu es o enhanced en i onmen al pe o mance. This expansion en iches ou heo e ical unde s anding
o dynamic capabili ies beyond gene ic adap i e capaci ies o include he speci ic abili y o o ganisa ions
o dynamically manage and le e age esou ces o en i onmen ally inno a i e endea o s. This inding
sugges s ha he agili y and lexibili y inhe en in dynamic capabili ies ex end beyond ma ke espon-
si eness o include esponsi eness o ecological impe a i es.
This s udy pa es he way o u u e esea ch by highligh ing he need o del e deepe in o speci ic
s a egies and p ac ices ha enhance g een dynamic capabili y. Such ad ancemen s can acili a e he
de elopmen and implemen a ion o inno a i e g een ini ia i es, ul ima ely leading o imp o ed en i on-
men al pe o mance. Fu he explo a ion o o he in luencing ac o s, such as o ganisa ional cul u e,
employee g een in es men , g een compe encies, and esou ce a ailabili y, could p o ide a mo e
COGENT BUSINESS & MANAGEMENT 15
comp ehensi e unde s anding o he mechanism h ough which g een ans o ma ional leade ship ans-
la es in o en i onmen al pe o mance. Fu u e esea ch could also examine he po en ial in e ac ions
be ween hese ac o s and o he o ganisa ional elemen s, such as employee g een mo i a ion o ex e nal
egula ions. Explo ing hese ac o s will help o ad ance knowledge in he ield o sus ainabili y and
p o ide a oadmap o o ganisa ions s i ing o become mo e en i onmen ally conscious and inno a i e.
Au ho con ibu ion
Concep ion and design: Klenam K. Ledi; Analysis and in e p e a ion o he da a: Bandoma S ephen & Klenam K. Ledi;
D a ing o he pape : Joana P ah and Klenam K. Ledi; Re ising o in ellec ual con en : Enya Ameza –Xemalo dzo;
Final app o al o publica ion: Klenam K. Ledi. All au ho s a e accoun able o all aspec s o he wo k.
Disclosu e s a emen
No po en ial con lic o in e es was epo ed by he au ho (s).
Abou he au ho s
Klenam Ko bla Ledi is a esea che a he depa men o ma ke ing and co po a e s a egy a Kwame Nk umah
Uni e si y o Science (KNUST). Business School. His main esea ch a eas a e sus ainabili y, ma ke ing, co po a e s a -
egy, en ep eneu ship, and inno a ion.
Joana P ah is an MPhil s uden a he depa men o ma ke ing and co po a e s a egy a Kwame Nk umah Uni e si y
o Science (KNUST) Business School. He main esea ch ields a e ma ke ing, s a egic managemen , and inno a ion.
Enya Ameza Xemalo dzo is a lec u e a KNUST Business School’s depa men o ma ke ing and co po a e s a egy,
as well as a Cha e ed Managemen and Adminis a ion consul an . His esea ch a eas a e co po a e go e nance,
co po a e social esponsibili y, ma ke ing, and en ep eneu ship.
S ephen Bandoma is a esea ch assis an a he Depa men o Teache Educa ion, Facul y o Educa ional S udies,
Kwame Nk umah Uni e si y o Science (KNUST). His main esea ch ields a e educa ional echnology, inclusi e edu-
ca ion, inno a ion, digi al ans o ma ion, and en ep eneu ship.
ORCID
Klenam Ko bla Ledi h p://o cid.o g/0000-0002-7759-3604
Enya Ameza – Xemalo dzo h p://o cid.o g/0000-0003-1329-4952
S ephen Bandoma h p://o cid.o g/0000-0003-1791-2674
Da a a ailabili y s a emen
Da a suppo ing he indings o his s udy a e a ailable om he co esponding au ho upon easonable eques .
Re e ences
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Appendix 1
G een ans o ma ional leade ship (GTL)
I inspi e subo dina es wi h en i onmen al plan.
I p o ide subo dina es a clea en i onmen al ision.
I encou age subo dina es o wo k on en i onmen al plan
I encou age employees o a ain en i onmen al goals
I conside en i onmen al belie s o my subo dina es.
I s imula e subo dina es o hink & sha e hei g een ideas.
G een inno a ion
My company uses ma e ials ha p oduce leas pollu ion
My company uses ma e ials ha o design en i onmen iendly p oduc
My company uses ma e ials ha a e easy o ecycle, euse, and decompose
The manu ac u ing p ocesses o my company e ec i ely educes haza dous subs ance o was e.
My company’s manu ac u ing p ocesses e ec i ely educe he consump ion o coal, oil, elec ici y o wa e .
G een dynamic capabili y
The company can quickly moni o he en i onmen o iden i y new g een oppo uni ies.
The company has e ec i e ou ines o iden i y and de elop new knowledge.
The company has he abili y o assimila e, lea n, gene a e, combine, sha e, ans o m, and apply new g een
knowledge (e.g. de eloping g een echnology).
The company has he abili y o success ully in eg a e and manage new specialized g een knowledge.
En i onmen al pe o mance
En i onmen al ac i i ies in my o ganiza ion has signi ican ly…
Reduced he o e all cos s.
Reduced lead imes.
Imp o ed p oduc /p ocess quali y.
Imp o ed epu a ion o my company.
Reduced was e wi hin he en i e alue chain p ocess.
