This study aims to examine the influencing of sustainability-oriented leadership styles (ethical, responsible and sustainable leadership) (sustainability-oriented leadership [SOL]) on green innovation (GI) in service companies through the components of knowledge management processes (KMPs) (knowledge creation, acquisition, sharing and application).
This study used partial least squares structural equation modeling (PLS-SEM) analysis to examine the relationship between SOL, KMP and GI based on a survey of 398 managers from service companies in Vietnam.
The results of the study indicated a positive association between SOL and the components of KMP. Moreover, the data analysis confirmed the relationship between the components of KMP and GI.
The direct relationship between SOL and GI, the mediating role of KMP between SOL and GI has not been confirmed in the research model.
Managers should learn and apply SOL and orient key personnel in their organizations toward these leadership styles. Furthermore, they must spend more time and thought on workforce development through KMP (with emphasis on the roles of knowledge acquisition and knowledge application).
First, this study combined upper echelons theory (UET) and resource-based view (RBV) into a coherent framework to investigate the influence mechanisms of leadership types necessary for sustainability on KMP (UET) and KMP on GI (RBV). Second, using UET as a foundation but the study extends UET by focusing on SOL and their influence on KMP. Third, this study applies RBV in clarifying the role of each KMP components on GI. Finally, the scope of the study focuses on service companies instead of manufacturing companies or small and medium enterprises as in previous studies.
