THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON GREEN PERFORMANCE: EMPIRICAL EVIDENCE FROM CHINA’S CONSTRUCTION SECTOR

Authors

  • Jing He School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010 Sintok, Kedah Darul Aman, Malaysia.
  • Bee Wah Tan School of Business, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia
  • Chor Foon Tang Centre for Policy Research, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia https://orcid.org/0000-0003-2242-9222 (unauthenticated)
  • Nor Fadzlin Mohammad Bahar School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010 Sintok, Kedah Darul Aman, Malaysia

DOI:

https://doi.org/10.11113/ijibs.v21.209

Keywords:

Transformational leadership, Green performance, Green innovation capability, Construction industry, Environmental sustainability

Abstract

This study examines the relationship between transformational leadership and green performance in China’s construction sector, with particular attention on how leadership influences environmental outcomes. Drawing on cross-sectional survey responses from 380 employees in construction firms, the study employs correlation analysis and multiple regression to evaluate both direct and indirect effects linking the dimensions of transformational leadership with employee green behaviour, green performance, and green innovation capability. Results show that the influence of transformational leadership is not uniform across its dimensions. Idealized influence has a significant positive association with green performance, whereas intellectual stimulation and inspirational motivation do not exhibit significant direct effects. Individualized consideration is negatively related to green performance. The mediation analysis further indicates that employee green behaviour does not significantly transmit the effect of transformational leadership to green performance, while green innovation capability serves as an important mediating mechanism. These findings suggest that leadership contributes to environmental outcomes in construction firms primarily through strengthening innovation-related capability rather than through direct changes in employee green behaviour.

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Published

2026-06-29

How to Cite

THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON GREEN PERFORMANCE: EMPIRICAL EVIDENCE FROM CHINA’S CONSTRUCTION SECTOR. (2026). International Journal of Innovation and Business Strategy (IJIBS), 21(1), 1-13. https://doi.org/10.11113/ijibs.v21.209