Green transformational leadership and employee green creativity: mediating and moderating mechanisms to support innovation

Purpose Using the componential theory of creativity, the purpose of this study is to conceptualize creativity as the result of interactions among domain-related skills, creativity and intrinsic motivation. This framework is particularly suitable as it explains how green transformational leadership (GTL), green self-efficacy (GSE), green knowledge capability (GKC) and green knowledge sharing enhance employee green creativity within manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach A quantitative, cross-sectional design was used. Data were collected from 279 employees and managers in Pakistani SMEs in the manufacturing sector. Structural equation modeling was used to test direct and indirect relationships, and Amos was used for model fit results. Findings GTL significantly enhances employee green creativity both directly and through GSE and GKC. However, green knowledge sharing negatively moderates the impact of GSE and GKC on employee green creativity, indicating potential inefficiencies in knowledge-sharing processes. It may cause cognitive overload or diminish the positive effect of mediators on creativity. Practical implications Findings suggest that SMEs should invest in green leadership development and implement structured green knowledge-sharing practices, as uncontrolled knowledge sharing may undermine the positive effects of green leadership on employee-driven environmental innovation. Originality/value This study makes a significant contribution to the existing body of knowledge. This research develops a mediated-moderated model to explain the underlying mechanisms and boundary conditions that link GTL to employee green creativity. This study also provides empirical evidence from SMEs, a context that has been relatively understudied in previous research.