Unravelling the impact of environmental leadership on sustainable organisational performance in the food manufacturing industry: the mediating role of eco-design

Purpose This paper aims to explore the relationships between environmental leadership (EL), eco-design (ED) and the environmental, social and economic sustainability pillars in the food manufacturing industry. Design/methodology/approach The paper adopts a mixed-method approach, combining interviews and a survey. Data were gathered from 141 managers of Palestinian food manufacturing firms. The data were analysed using partial least squares structural equation modelling (PLS-SEM). Findings The authors found that EL has a positive impact on sustainable organisational performance (SOP) and ED. ED impacts the environmental and economic performance, but does not impact social performance (SP). The findings confirm the mediating effects of ED in achieving financial and environmental goals. By contrast, the role of ED as a mediator in the relationship between EL and SP is not significant, indicating that ED practices in the Palestinian food industry remain in the early stages of development. Research limitations/implications This paper advances our understanding of green leadership and practices in developing countries, especially in the food manufacturing sector. The study’s limitation—its usage of a specific geographic location (the West Bank region)—may affect how widely the results may be applied. Originality/value This study provides new insights into sustainable practices in developing countries, as the literature indicates that no previous studies have examined the relationships between EL, ED and SOP in Palestine. This study applies the natural resource-based view (NRBV) theory and the stakeholder theory to provide a deeper understanding of how ED influences the relationship between EL and SOP.