Based on self-determination theory, the paper investigates the link between environmentally specific transformational leadership (ETFL) and subjective well-being (SWB) of employees working in an energy intensive industry. The paper also aims to examine pro-environmental behavior (PEB) as a mediator mechanism between ETFL and SWB relationship.
An empirical research design was used for the analysis. In total, 293 respondents working in different energy intensive Indian companies filled the questionnaire for the study. The data were analyzed using structural equation modeling SMART-PLS 3 software which is a graphical user interface for variance-based structural equation modeling using the partial least squares path modeling method. Two stages of analysis were conducted: the measurement model and the structural model.
The results indicate that (1) ETFL has a significant positive impact on PEB. (2) PEB is positively correlated to SWB. (3) ETFL has a significant impact on SWB. (4) The underlying mechanism process of ETFL and SWB relationship is explained by mediation of PEB.
Overall, the study insinuates that PEB act as underlying mechanism in environmental leadership and SWB of employees. The study further suggests that the management should promote green leaders for enhancing the overall SWB of the managements' employees especially in energy intensive sector. Doing so helps the managers to enhance managers' environmental conscious behavior for inducing SWB of employees.
The study contributes to novel findings in existing literature particularly to determine ETFL and PEB as predictors of SWB especially in energy intensive sector. The study also leads the ways for organizations by promoting green conscious leaders, which stimulates PEB among employees that ultimately contributes to SWB of employees. Furthermore, the research methodology can be used in other studies for variation of contextual variables such as size of the industry, developed or underdeveloped country and manufacturing or service industry.
