Green leadership and pro-environmental behaviour: a moderated mediation model with rewards, self-efficacy and training

• DOI: https://doi.org/10.1108/IJOES-02-2022-0041
• Published date: 06 September 2022
• Date: 06 September 2022
• Pages: 481-501
• Subject Matter: Economics,Social economics
• Author: Jaya Ahuja,Mohit Yadav,Rommel P. Sergio

Green leadership and

pro-environmental behaviour: a

moderated mediation model with

rewards, self-efficacy and training

Jaya Ahuja

School of Management, BML Munjal University, Gurgaon, India

Mohit Yadav

O.P. Jindal Global University, Sonipat, India, and

Rommel P. Sergio

Canadian University Dubai, Dubai, United Arab Emirates

Abstract

Purpose –The purpose of this study is to identifythe association between environmental leadership (EL)

and pro-environmental behaviour among the middle-level employees in iron and steel manufacturing

companies. The study furtheremphasizes on mediation of the relationship by green rewards and green self-

efficacyin EL and pro-environmentalbehaviour relationship, moderatedby green training.

Design/methodology/approach –To find the reliability and validityof the model, confirmatory factor

analysis was used. Pearson correlation was used to explore the relationship between variables. PROCESS

macro of Hayes(2013) Model 14 was used to test mediationand moderated mediation.

Findings –EL influenced pro-environmental behaviour in middle-level employees. Green rewards and

green self-efficacy mediated the relationship. Green training moderated the mediated relationship of green

rewardsand green self-efficacy between EL and pro-environmentalbehaviour.

Originality/value –This is a fresh contribution around EL and pro-environmentalbehaviour in iron and

steel companies; however, thereare studies available on this relationship, but the unique contribution of the

study is studyingEL in iron and steel companiesand mediated moderated relationship by green rewards, self-

efficacy and training. It is necessaryfor the organizations to develop environmental leaders to promotepro-

environmentalbehaviour in employees across sectors.

Keywords Environmental leadership, Green rewards, Green self-efficacy, Green training,

Moderated mediation

Paper type Research paper

1. Introduction

With the advent of rapid industrialization, the standard ofliving has advanced for mankind;

however, the substantialgrowth has hampered the natural environment. This has instigated

research on environmental issues and the organizational systems (Daily and Huang, 2001).

There is a substantial increase in global warming due to the emission of greenhouse gases

(United Nations, 2020). This has made it essential for the countries to limitemissions above

the pre-industriallevel.

Developing countries like India are experiencing industrial revolution. Carbonemissions

are growing at an alarming rate worldwide. Organizations across all sectors are required to

take necessary action to curb this growing problem(Dahlmann and Brammer, 2013). As per

Moderated

mediation

model

481

Received17 February 2022

Revised21 June 2022

Accepted22 July 2022

InternationalJournal of Ethics and

Systems

Vol.39 No. 2, 2023

pp. 481-501

© Emerald Publishing Limited

2514-9369

DOI 10.1108/IJOES-02-2022-0041

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/2514-9369.htm

the Paris agreement, India has pledged to reduce the emissions by 30%–35% by 2030.

India’s carbon emissions fellfor the very first time in 2019–2020 due to the global pandemic.

As per Indian Steel Association, steel demand will grow by 7.2% in 2019–2020 and 2020–

2021. There is a prediction that carbon emissionby steel industry is going to triple by 2025

(www.ibef.org/industry/steel-presentation). As Indian economy is growing fast, the income

and consumption levels consequently are increasing and straining the natural resources

along with the environment. Some form of intervention is urgently required to regulate the

consumer actions for achieving sustainable consumption and growth. One form in this

regard, can be the positive attitude and right behaviour of mankind towards environment

(Singh and Gupta, 2013). The Indian prime minister was recognized for his environmental

leadership as the country fights against pollutionand is trying to turn plastic challenge as a

business opportunity. India is betting on a green economy because they realise that is

the economy of well-being (www.unep.org/news-and-stories/press-release/celebrating-bold-

environmental-leadership-and-plastic-free-future).

Human behaviour has been reported to be a root causeof these environmental problems

(Vlek and Steg, 2007). Change in human behaviour for using energy-efficient products,

technology, waste management, water-saving, energy saving, etc., is an answer to these

issues (Norton et al.,2015;Zs

oka et al., 2013). To ensure environmentalsustainability, there

is a need for pro-environmental attitude, that can also be observed in an employee’s daily

work (Hawcroft and Milfont, 2010;Bamberg, 2003). Research has consistently shown a

positive association between green approach and behaviour (Bamberg and Möser, 2007;

Kaiser et al.,1999). Organizations have realized that there is a need to encourage pro-

environmental behaviour (PEB) to improve environmental activism. Organizations around

the world have made progress in implementing pro-environmental initiatives (Zibarras and

Coan, 2015;Ones and Dilchert, 2012). Ajzen’s (1991) theory of planned behaviour (TPB)

emphasizes that a person’s intent, whenshared with perceived behavioural control, will aid

in forecasting behaviour with greater precision. Researchers have tried to identify the

predictors for PEB. Leadership is recognized as a significant contributor and antecedent.

Many studies have reported the part of EL in influencing environmental behaviour (Kim

et al.,2020;Robertson and Carleton, 2018;Robertson and Barling, 2015). EL has a significant

effect on environmental belief and a sound environmental policy acts as a catalyst towards

strengtheningthe environmental belief in employees (Kim et al., 2020).

EL is a process that involves two-dimensional dichotomy with an individual and

organizational impact as well as internal and external relationships. Individual influence

refers to the influence that occurs duringindividual interactions. EL will be exhibited, where

members try to influence their peers, subordinates and superiors. Organizational level

leadership includes change in policies, structure, reward systems, quality management and

culture of the organization to support environmental cause. Internal leadership includes

designing strategies, building effective teams and ensuring employee motivation and

commitment to deal with environmental issues, whereas external leadership includes

creating a network outside the organization, which includes stakeholders like customers,

government, competitors,etc. (Portugal and Yukl, 1994).

A major component of EL is to inspire the employees to display PEB at workplace. EL

and rewards have a substantial impact on PEB. Reward systems and recognition

programmes can motivate the employee to undertake environmental responsibility (Laabs,

1992;Patton and Daley, 1998). EL and self-efficacyare likely to create a definite influence on

PEB (Clayton et al., 2013). Robertson and Carleton (2018) conducted a study to investigate

the effect of EL on voluntary PEB and reported that environment-specific leadership has a

direct impact on PEB and an indirect effectonly on employees with high locus of control. A

IJOES

39,2

482