Powering Up for a Greener Future: Employee Empowerment and Green Product Innovation in China’s Manufacturing Industry

Growing environmental pressures have increased the need for the manufacturing industry to develop greener products. Employee empowerment is closely associated with green product innovation (GPI). Higher levels of employee empowerment are typically accompanied by greater employee autonomy, which may provide more favorable conditions for GPI. However, existing research offers limited insight into how empowerment specifically influences GPI during the R&D process. To address this gap, this study draws on social exchange and social learning theories to explore the impact of GPI from the perspective of employee empowerment. Moreover, by positioning knowledge sharing (KS) as a mediator and green transformational leadership (GTFL) as a moderator, this study aims to explain the internal mechanisms and boundary conditions. We conducted a questionnaire survey of 199 employees in the R&D departments of Chinese manufacturing firms and used hierarchical regression to analyse the data. The findings show a positive relationship between employee empowerment and GPI, with KS playing a mediating role. We also find that GTFL strengthens the effect of KS on GPI. This study contributes to the existing knowledge by offering new insights into the association between employee empowerment and GPI. For R&D department heads in manufacturing companies, this study provides valuable recommendations for green product development by highlighting the importance of employee empowerment and GTFL.