How institutional pressure and green transformational leadership shape enterprise green development

Abstract This study extends existing literature by exploring the impact of institutional pressures on green transformational leadership in a way that triggers green thinking and creative process engagement among employees. This research enhances the understanding that leveraging employees to express their concerns over environmental issues would contribute to sustainable solutions that foster enterprise green development. Data was collected from China’s manufacturing industry executives and non-executives and analyzed in SmartPLS. This study responds to environmental concerns through the lens of institutional pressure that motivates leaders to engage their subordinates in green thinking and creative processes, and work together to boost the financial and environmental performance of the organizations. This research study highlighted the nexus between IP, GTL, CPE, GT, and enterprise green development. The study revealed direct and indirect relations of IP and GTL on the cognitive aspects of subordinates and enterprise green development. The findings offer significant insights and mechanisms for managers to translate institutional pressures into GT and CPE to achieve EGD.