The Impact of Green Inclusive Leadership on Green Innovation in Chinese SMEs: The Mediating Roles of Green Knowledge Sharing and Green Organizational Identity

The growing urgency of climate change underscores the need for enhanced green management practices across organizations, particularly for small and medium enterprises (SMEs), the backbone of economic development. Green inclusive leadership (GIL) is defined as a leadership approach that emphasizes inclusivity, openness, and support for employees’ green ideas and contributions, fostering alignment with organizational environmental objectives. This study examines the influence of GIL on green knowledge sharing (GKS), green organizational identity (GOI), and green innovation (GI) within diverse Chinese industries, including manufacturing, services, media, and IT. Using data from 625 valid survey responses collected from 700 predominantly young, educated employees, this research demonstrates that GIL has a direct positive impact on GKS, GOI, and GI. The findings further reveal that GKS and GOI significantly contribute to GI, highlighting their roles as critical drivers of green innovation. Additionally, GKS and GOI partially mediate the relationship between GIL and GI, providing insights into how GIL promotes sustainable practices and innovation. This study underscores the importance of leadership and collaborative organizational practices in fostering a green-oriented organizational climate, supporting adopting green business models essential for competitive and resilient enterprises in a sustainable economy.