Green transformational leadership and firm reputation: the roles of green supply chains and individual green values using Structural Equation Modeling

This study examines how green transformational leadership, individual green values, and green supply chain management influence corporate reputation in the Peruvian food sector. Although the literature assumes that these practices automatically generate reputational benefits, their effectiveness in emerging contexts with low regulatory pressure is unknown. A non-probability convenience sampling method was used to survey 359 managers of large private companies in Lima, Peru, and the data were analyzed using PLS-SEM in SmartPLS 4. The results show that: (1) green transformational leadership directly drives green supply chain management and reputation; (2) Green supply chain management, on its own, does not significantly affect reputation; (3) individual green values positively influences green transformational leadership and reputation; and (4) green transformational leadership mediates the relationship between individual green values and reputation. And (5) contrary to expectations, individual green values negatively moderate the green supply chain management –reputation relationship, suggesting that a perceived superficial green supply chain management erodes the trust of employees with strong environmental values. The study concludes that effective sustainability requires quality implementation, green organizational capabilities, and a comprehensive ESG (Environmental, Social, and Governance) approach, not just the symbolic adoption of environmental practices. These findings offer nuanced insights for managers and policymakers in developing economies.