Abstract:

This study investigates the role of green transformational leadership of business owner-managers in small and medium-sized enterprises (SMEs) in green process innovation. More specifically, this study combines the natural resource-based theory and the upper echelons theory to examine green core competency as an important basic tool in the impact of green transformational leadership styles of managers in SMEs on green process innovation. Data were collected from 403 SMEs to test the developed theoretical model. The Smart PLS 3 analysis program was utilized to conduct the analysis. The results confirm that the green transformational leadership of business owner-managers in SMEs has a direct positive relationship with green process innovation and an indirect positive relationship through green core competencies. Furthermore, the results demonstrate that the green transformational leadership of business owner-managers in SMEs positively affects green core capabilities, and green core capabilities also support green process innovation. The study contributes to theoretical and practical knowledge by elucidating the relationships between green transformational leadership and green process innovation and highlighting areas of organizational development that may impact green process innovation, particularly in the manufacturing SME industry.

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