Green transformational leadership and firm performance: the mediating role of environmental passion and strategies

Purpose Over the past two decades, the issue of environmental concerns has garnered growing global attention. The primary objective of this study is to investigate the relationship between green transformational leadership and firm performance, with two mediating variables, environmental passion and environmental strategies, as well as control variables. This paper offers critical new insights into how ecological passion, combined with Green Transformational Leadership, enhances corporate performance through environmental strategy. The role of green transformational leadership is to improve firm performance and motivate both the leader and others toward a sustainable environment. Design/methodology/approach We obtained data from 1512 respondents working in SME manufacturing companies in China, using a convenience sample approach. The two software packages used in this study are Smart PLS, R, and SPSS for data analysis. Findings Our findings, based on the data, indicate that the role of green transformational leadership in firm performance is significant, with the two mediating variables of environmental passion and environmental strategies also contributing to firm performance. Originality/value This study provides a novel contribution by empirically linking green leadership to firm performance through dual mediators, environmental passion and strategy. It highlights the psychological and strategic mechanisms through which sustainable leadership translates into measurable organizational benefits, offering practical implications for business leaders and policymakers focused on sustainability and performance enhancement.