Impact of sustainable leadership practices on green innovation: the mediating role of green organisational culture

Abstract This study examines the impact of sustainable leadership practices on green innovation, with a particular emphasis on the mediating role of green organisational culture. Sustainable leadership is crucial for integrating environmental responsibility into organisational structures and aligning internal values with sustainability objectives. Using a simple random sampling technique, data were collected from 477 small and medium-sized enterprises (SMEs) through structured questionnaires. Reliability and validity were assessed via Confirmatory Factor Analysis (CFA) in AMOS 24, with Cronbach’s alpha used to evaluate internal consistency. Structural Equation Modelling (SEM) was employed to test the proposed relationships. The results provide strong empirical support for the hypothesised model. Foundational and advanced sustainable leadership practices significantly contribute to the development of a green organisational culture. Moreover, performance drivers further reinforce this culture, which in turn positively impacts green product innovation and process capabilities. While green organisational culture may not directly initiate product innovation, it strengthens the relationship between sustainable practices and innovation outcomes. These findings provide practical insights for business leaders and policymakers seeking to integrate sustainability into their organisational strategies and innovation systems.