Factors Affecting Environmental Performance during the Covid-19 Period in the Leather Industry: A Moderated-Mediation Approach

Abstract

Like many different and relevant sectors, the leather industry is currently facing a major environmental issue that may affect the competitiveness of all the stakeholders across the value chain. Drawing the conceptual model on the natural resource-based view (NRBV), this study seeks to examine the mediating role of individual green values (IGV) between green transformational leadership (GFTL) and environmental performance (EP). Furthermore, government regulations are used as a moderator concerning the relationship between GTFL and EP. An online survey was randomly distributed to Pakistan's leather industry employees to test the hypothesis by collecting data from 205 respondents. Partial Least Square Structural Equation Modeling (PLS-SEM) has been used to analyze data. The results demonstrate that green transformational leadership (GTFL) positively affects EP. Moreover, this study also reveals that GTFL significantly contributes to developing the IGV that consequently affects EP. Thus, the current study provides a significant sequential GTFL, IGV and EP path. However, surprisingly, the results show that government regulations do not moderate the relationship between GTFL and IGV. This study significantly contributes to the theory and stakeholders and leaders in a vast variety of manufacturing industries. It suggests that all organizations should adopt GTFL principles that encourage employees to engage in environmentally friendly activities by developing green values at the individual level to enhance EP. With this regard, GTLF, IGV, and government regulations may thus play a vital role for organizations and industry for better EP and competitiveness.