Enhancing tourism and hospitality organizations’ ESG via transformational leadership and employee pro-environmental behavior: The effect of organizational culture

Abstract

Existing literature on environmental, social, and corporate governance (ESG) primarily focuses on outcomes, neglecting strategies to enhance its predictors. Drawing upon the competing values framework (CVF) and self-determination theory (SDT), this study investigates the interactive impact of transformational leadership (TFL) and two types of external-focused organizational cultures (OCs) on employee pro-environmental behaviors (PEBs) and subsequently ESG performance in the context of tourism and hospitality industry. By employing a time-lagged field investigation involving 57 Chinese hospitality organizations, this multilevel study draws several findings. First, TFL promotes PEBs among hospitality employees, which in turn contributes to enhanced ESG performance. Second, the adoption of an adhocracy culture in hospitality organizations can further enhance the positive impact of TFL on employee PEBs. Finally, this study also reveals the serial mediating roles of intrinsic and extrinsic motivation, that is, psychological empowerment (PE) and perceived insider status (PIS), in the relationship between TFL and employee PEBs.