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Commitment Capital's Role in Green Leadership

This study investigates the effects of environmentally oriented servant leadership on organizational green performance, emphasizing the moderating role of commitment capital. Data collected from 321 employees in Vietnamese SMEs indicates that commitment capital enhances the relationship between leadership, employee green innovation, and informal leadership roles, ultimately improving green performance. The findings suggest practical recommendations for organizations to foster sustainable development through effective leadership and employee engagement in green initiatives.

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0% found this document useful (0 votes)
16 views17 pages

Commitment Capital's Role in Green Leadership

This study investigates the effects of environmentally oriented servant leadership on organizational green performance, emphasizing the moderating role of commitment capital. Data collected from 321 employees in Vietnamese SMEs indicates that commitment capital enhances the relationship between leadership, employee green innovation, and informal leadership roles, ultimately improving green performance. The findings suggest practical recommendations for organizations to foster sustainable development through effective leadership and employee engagement in green initiatives.

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hadiepanh102
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

THE MODERATING ROLE OF COMMITMENT CAPITAL IN THE

RELATIONSHIP BETWEEN ENVIRONMENTALLY ORIENTED SERVANT


LEADERSHIP, GREEN INNOVATION, AND ORGANIZATIONAL GREEN
PERFORMANCE

Abstract
This study aims to analyze the impact of environmentally oriented servant leadership
on the green performance of organizations. Adopting a quantitative research approach, we
gathered responses from 321 employees and workers within the context of SMEs in Vietnam.
Mixed surveys which combine online questionnaire distribution and direct delivery of
questionnaires were utilized for the data collection purpose. The questionnaires were
designed using a 5-point Likert scale. The survey results were processed by our research team
using descriptive statistics and hypothesis testing, along with reliability assessments. In
addition, the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique was
applied using SmartPLS 4.0 software to test the validity of the proposed hypotheses. The
findings indicated that commitment capital plays a moderating role in the relationship between
environmentally oriented servant leadership, employees’ green innovation and informal
leader’s role, which has positive effects on the green performance of the organization. Based
on the findings, recommendations are provided to help motivate and enhance green
performance, assisting businesses and organizations in accomplishing sustainable
development goals.
Keywords: Commitment capital, employees’ green innovation, informal leader’s role,
environmentally oriented servant leadership, organizational green performance
1. Introduction
Currently, many countries, including Vietnam, are facing urgent environmental issues and
the trend of sustainable development is increasingly being concerned by organizations and
governments (Truong et al., 2016; Nguyen & Tran, 2025). International organizations and
countries have taken specific actions such as the promulgation of the European Green Deal
with the goal of reducing carbon emissions to zero by 2050, the Inflation Reduction Act of
2022 of the United States or the commitment to achieve net zero emissions by mid-century of
the Asia region, Japan and Korea. Organizations are increasingly under pressure from many
stakeholders, including governments, customers and communities. Hariswaran et al. (2020)
demonstrated that leadership plays a vital role in enhancing organizational performance,
especially in service organizations, where effective leadership style is positively correlated
with organizational performance. However, for leaders to contribute to achieving the overall
sustainable development goals of the organization, favorable conditions of other factors within
the organization are also needed. More specifically, the research of Zhou et al. (2022) proves
that the leadership style of service has a positive impact on the participation of employees,
especially when trusting in the leadership is strengthened.
Facing global challenges such as climate change, pollution and resource impairment, green
innovation are becoming a key strategy to help businesses towards sustainable development
(Nguyen et al., 2021; Chien et al., 2022). In fact, many businesses around the world have
achieved significant success through green innovation orientation, demonstrating the
importance of integrating sustainability values into leadership strategies. However, internal
organizational factors, such as leadership style and informal leadership roles, have not been
fully studied in promoting green performance.A typical example of success in the field of
green innovation is Lucid Motors, a startup in the electric car industry. In July 2021, Lucid
Motors completed the public listing through the merger with the acquisition company with a
special purpose (SPAC - Special Purpose Acquisition Company) Churchill Capital Corp IV,
raising US $ 4.4 billion and reaching the valuation of about US $ 24 billion, although there was
no significant revenue at that time. This event reflects the great expectations of investors in the
1
future of production and green consumption based on innovation. This example shows the
expectations of many investors about the future of green production and consumption based on
green innovation.
Although the topic of green behavior and leadership has attracted considerable attention in
developed countries, research in the Asian context, particularly in Vietnam, remains limited.
Most existing studies have focused on individual cognitive factors, while few have examined
the relationships among environmental servant leadership (SL), informal leadership (IL), and
commitment capital (CC) in enhancing the green performance (GP) of organizations.
Moreover, Vietnam, as a rapidly developing economy facing increasing pressure from green
policy implementation, offers a unique empirical context to further extend theories of
sustainable organizational [Link], to date, there have not been many studies and
surveys in Asia in general and Vietnam in particular to provide more specific and suitable
recommendations and solutions. In addition, the relationships between servant leadership in
general and environmentally oriented servant leadership (SL) in particular, employees, and
informal leader’s role (IL) have not been clarified in existing studies. In particular, the impact
of committed capital (CC) on these relationships has not been studied specifically and clearly.
Based on this problem, the present study aims to clarify the mechanism through which
environmental servant leadership influences informal leadership and organizational green
performance, as well as to test the moderating role of commitment [Link] conducted a
study to understand how SL affects the role of IL of organizations and the moderating role of
CC. To verify the proposed model, we used descriptive statistics and scale reliability testing
methods on SPSS 27. SmartPLS 4.0 was used to test the model and research hypotheses. The
research results are expected to contribute to the improvement of management theory by
explaining how green values are transmitted from leaders to the organization, while also
providing practical implications for Vietnamese enterprises seeking to strengthen their internal
green [Link] the process of spreading green values from leaders to
organizations, and at the same time providing solutions for implementing organizational green
performance (GP) optimization efforts through capacity building within the organization
2. Theoretical basis, hypotheses and research model
2.1. Environmentally oriented servant leadership
Environmentally oriented servant leadership refers to a leadership style in which leaders,
driven by pro-environmental values, guide and support employees to adopt sustainable
practices, contributing to both organizational and community sustainability (Tăpurică &
Ispăsoiu, 2013; Liden et al., 2014). By providing necessary resources, empowering employees,
and fostering a green organizational culture, environmentally oriented servant leadership
motivate employees to engage in environmentally responsible behaviors, which ultimately
enhances organizational green performance (Popescu & Popescu, 2019; Boiral et al., 2009).
Thus, environmentally oriented servant leadership aligns organizational goals with
environmental sustainability, ensuring a commitment to long-term green growth (Aboramadan
et al., 2021).
2.2. Informal leader’s role
Informal leaders are individuals who, despite lacking formal authority, possess the
capacity to influence and guide others, thereby playing a critical role in enhancing group
effectiveness, increasing productivity, and cultivating positive interpersonal dynamics within
organizational settings (Leino, 2022). Their emergence is shaped by a complex interplay of
factors including political skill (Liu et al., 2024); the quality of leader-member exchange
relationships (Wang et al., 2025); support from formal supervisors (Briker et al., 2021); and
emotional intelligence, (Wolff et al., 2002)
2.3. Employees’ green innovation
Creativity is the intellectual process of generating new and potentially useful ideas (Hon
and Lui, 2016) is a fundamental driver of innovation and long-term organizational success
(Shalley et al., 2004; Wikhamn, 2019), and in the case of green innovation, it refers to
innovations aimed at achieving sustainable development and conserving natural resources by
2
creating greener products and services (Wang et al., 2021). While individual ability matters,
leadership plays a key role in shaping the work environment that supports creative thinking
(Shin & Zhou, 2003). Servant leadership, by fostering trust, collaboration, and psychological
safety, creates ideal conditions for both individual and team creativity to thrive (Zhou et al.,
2018; Forgeard & Mecklenburg, 2013).
2.4. Organizational green performance
Organizational green performance encompasses the effectiveness of a company's hardware
and software systems in supporting environmentally sustainable operations, such as energy
conservation, pollution reduction, waste management, eco-friendly product development, and
innovations in environmental management technologies (Luu, 2020). In the context of
increasing societal demands for environmental responsibility, organizational green
performance has become a crucial indicator that reflects an organization’s commitment to
environmental protection and serves as a key determinant of sustainable growth prospects
(Feng & Wang, 2016).
2.5. Theoretical foundations
Drawing on social learning theory (Bandura, 1977), which posits that individuals learn
by observing and imitating the behaviors of others, especially those considered role models in
their social environment, environmentally - specific servant leadership serves as a powerful
influence on employees’ pro-environmental behavior in the workplace. Within organizational
settings, servant leaders who are seen as trustworthy and legitimate influence subordinates
through frequent interaction, setting a positive example and creating supportive conditions
(Brown et al., 2005). By modeling sustainability values and actions, and empowering
employees to experiment with new ideas, environmentally oriented servant leaders foster
employees’ environmental commitment and green creativity, ultimately enhancing
organizational green performance (Shah et al., 2023; Butt et al., 2024).

Cognitive asymmetry theory of power distance highlights that within organizations,


perceptual mismatches can occur between leaders and employees regarding power distance.
This happens when leaders believe they have provided sufficient support for creativity, but
employees do not perceive or experience it in the same way (Amabile et al., 2004). Servant
leadership typically aims to foster creativity by encouraging employees to challenge the wrong
system and try new techniques that boost employee creativity (Williams et al., 2017).
However, when there is a disconnect in perception, these efforts may not lead to the intended
outcomes. Employees may feel unrecognized or demotivated, resulting in a gap between
leaders' expectations and employees' actual experiences (Amabile, 1996). Therefore,
psychological alignment plays a critical role in reducing cognitive asymmetry between leaders
and employees. When both parties share mutual understanding and empathy, their relationship
strengthens, creating a solid foundation for effective green innovation and sustainable
development (Niazi et al., 2023).

[Link] relationship between environmentally oriented servant leadership and


employees’ green innovation
Rooted in social learning theory (Bandura, 1986), servant leadership (SL) plays a
significant role in cultivating employees’ green innovation (GI) by modeling environmentally
conscious behaviors. Leaders who adopt sustainable policies, prioritize resource efficiency,
and actively support green initiatives establish a normative framework that enhances
employees’ environmental awareness and aligns with their intrinsic values. This alignment
fosters a shared sense of purpose, motivating employees to internalize sustainability goals as
part of their moral and professional identities. Furthermore, SL amplifies engagement by
creating structured opportunities for collaborative problem solving, encouraging
experimentation with eco-centric practices, and formally recognizing innovative contributions.
Such a leadership style fosters an organizational environment in which employees’ values are
aligned with strategic sustainability goals, thereby reinforcing their accountability and
3
dedication to addressing ecological challenges. According to Santos and Zupelli (2021),
business leaders play an important role in promoting sustainable strategy through creating a
continuous learning environment and social observation models, thereby encouraging
employees to develop creative and sustainable [Link] on this theoretical framework,
the research team proposes the following hypothesis:
H1: Environmentally oriented servant leadership has a positive impact on employees'
green innovation.
2.7. The relationship between employees’ green innovation and organizational green
performance
Environmental initiatives controlled by employees are an important factor in enhancing
the organization's green performance (GP), because personal creativity is essential for GI and
sustainable development (Schneider & Wall, 2022) . By leveraging their creativity and
innovative thinking, employees can devise solutions that contribute to the development of
environmentally friendly products and services, enhance production efficiency, and mitigate
negative environmental impacts. Active employee engagement in GI enables organizations to
deliver high-quality green products and services at reduced costs, thereby bolstering their
reputation and competitive advantage in both domestic and international [Link] not only
improves GP but also creates long-term opportunities for sustainable growth. Therefore, we
propose the following hypothesis:
H2: Employees’ green innovation has a positive impact on organizational green
performance.
2.8. The relationship between environmentally oriented servant leadership and the
informal leader's role
Environmentally oriented servant leadership (SL) and the informal leader's role (IL) are
closely linked and tend to reinforce each other, thereby playing a critical role in enhancing
organizational green performance. According to Afsar, Badir and Kiani (2021), the leader of
the environmental characteristics (ESS) plays an important role in promoting the voluntary
Pro-Environmental behavior of employees by giving psychological rights and strengthening
the organizational identity . Through the responsibility and strong commitment of servant
leadership toward environmental orientation and green creativity, opportunities and favorable
conditions are created for ILs to demonstrate leadership and guide organizations toward
positive changes in sustainable development initiatives (Bruyere, 2015; Wang et al., 2023).
In addition, SL emphasizes empathy toward employees and focuses on the overall
development of the organization. Servant leaders tend to inspire the emergence of IL and
motivate the development of IL behaviors within organizations (Wang et al., 2023). As a
result, ILs are empowered to contribute and provide greater emotional and psychological
support, which in turn enhances and positively improves organizational green performance.
Furthermore, the informal leader's role, under the positive influence of SL, also plays a
supportive and reinforcing role in enhancing the effectiveness of SL by influencing employees’
green initiatives and mobilizing organizational resources (Bruyere, 2015).
Based on this theoretical foundation, we propose the following hypothesis:
H3: Environmentally oriented servant informal leaders’ role leadership has a positive
impact on informal leader’s role.
2.9. The relationship between informal leader’s role and organizational green
performance
Informal leaders are individuals who, despite lacking formal authority, exert significant
influence through an environmentally oriented servant leadership style that prioritizes
empathy, stewardship, and collective well-being. Rather than relying on hierarchical authority,
they employ effective leadership strategies with inclusive and value-based approaches to
motivate and collaborate with others, fostering shared goals for sustainable change (Pielstick,
2003). According to Sun et al. (2013), ILs gain the trust and support of their colleagues by
guiding and supporting others. Furthermore, with their expertise and knowledge in green
practices, ILs can raise employees’ awareness and understanding of sustainability issues,
4
thereby fostering green behaviors and initiatives within the organization (Mughal et al., 2022).
For example, when ILs integrate green practices into daily work processes (e.g., reducing
waste or advocating for energy efficiency), they act as catalysts for organizational green
performance by reshaping norms and reinforcing pro-environmental values (Wesselink et al.,
2017). When ILs engage in GI and model sustainable behaviors, they serve as influential role
models. Their actions naturally shape employees’ perceptions and encourage the continuous
adoption of green practices, reinforcing the organization’s commitment to sustainable
development (Cai et al., 2020) . Based on this perspective, we propose the following
hypothesis:
H4: Informal leader’s role positively influences organizational green performance.
2.10. The moderating role of commitment capital
Based on Angle & Perry (1983), commitment capital—the psychological bond between
employees and their organization—enhances the effectiveness of environmentally oriented
servant leadership by empowering informal leader’s role to support sustainability initiatives.
High commitment capital ensures that employees embrace green initiatives, translating
leadership signals into concrete environmentally friendly actions. This amplifying link between
environmentally oriented servant leadership, informal leader’s role support, and employees’
green innovation leads to superior green organizational performance. Consequently,
commitment capital constitutes an important moderating construct in the relationship between
talent management practices—specifically, attracting, developing, and retaining human capital
—and subsequent human capital performance. Higher levels of commitment capital enhance
the effectiveness of talent management interventions, thereby promoting greater initiative,
motivational intensity, and operational productivity. In academic research on the interactions
of commitment capital with employee green innovation, informal leadership, environmentally
oriented servant leadership, and organizational green performance, commitment capital serves
as a key catalyst that enhances the positive impact of these antecedent variables on
organizational sustainability performance metrics.(Alzyadat et al., 2024; Andersén & Jansson,
2024) H5: Commitment capital moderates the relationship between environmentally oriented
servant leadership and informal leaders’ role.
H6: Commitment capital moderates the relationship between environmentally oriented
servant leadership and employees’ green innovation.
Fig. 1 is our study’s conceptual model.

Fig. 1: Proposed Research Model


Source: compilations by the authors

5
3. Research methodology
Scale
To examine the proposed research model, this study employed measurement instruments
that were adapted and refined from previously validated literature. All constructs were
measured using items rated on a five-point Likert scale, ranging from strongly disagree (1) to
strongly agree (5). The scale for environmentally oriented servant leadership (SL) was adapted
from Luu et al. (2020). The measurement of green performance (GP) of organizations was
based on the scale developed by Paillé et al. (2014). Employees’ green innovation (GI) was
assessed using the instrument designed by Chen et al. (2014). The scale for commitment
capital (CC) was adopted from Li et al. (2024). Furthermore, the informal leader’s role (IL)
was measured using the original scale proposed by Srivastava and Gupta (2022). All
measurement items were modified to align with the specific context of the present study.
Research sample
Due to the nature of the study and the practical constraints of data collection, the research
targeted private and foreign-invested enterprises operating in Vietnam with a workforce
exceeding 100 employees. These organizations operate across various sectors including
banking, import-export, finance, and certain industrial manufacturing industries. The selection
of enterprises with at least 100 employees was based on both practical and legal grounds.
According to the Vietnamese Government's Decree No. 80/2021/ND-CP, organizations with
100 to 200 employees that meet specified thresholds for revenue or total assets are categorized
as medium-sized enterprises. Such enterprises generally have structured organizational
hierarchies, which enable the implementation of leadership, innovation, and performance-
related [Link] sample frame was developed using enterprise data obtained from
Vietnam Expo 2023. Subsequently, from August 1 to October 15, 2024, survey questionnaires
were distributed both online (via email) and in person to targeted participants. A total of 1,500
employees from 23 enterprises were invited to participate, resulting in 368 responses—
comprising 179 direct responses and 189 online responses—with respective response rates of
99.4% and 12.6%. After data screening and removal of incomplete or invalid entries, 321
responses were retained for analysis, yielding a usable response rate of 86.96%.
Data processing
In this study, to validate the proposed research model, descriptive statistical analysis and
reliability evaluation of the measurement scales were first performed using SPSS version 27.
Subsequently, the structural model and research hypotheses were tested through Partial Least
Squares Structural Equation Modeling (PLS-SEM) employing SmartPLS version 4.0.
According to Hair et al. (2016), PLS-SEM is a robust analytical technique suitable for
validating predictive models and examining complex relationships among latent constructs.
4. Research results and discussion
4.1. Descriptive Statistics
Among the 321 valid respondents, 165 were male (51.4%) and 156 were female (48.6%).
In terms of age distribution, 154 participants (48%) were between 21 and 27 years old, 122
participants (37.7%) were between 28 and 35 years old, and the remaining 45 participants
(14.3%) were aged between 36 and 50. Regarding the size of the enterprises, 104 respondents
(32.4%) were employed at firms with 100 to under 200 employees, 131 respondents (40.8%)
worked in organizations with 200 to under 300 employees, and 86 respondents (26.8%) came
from enterprises with 300 to under 450 employees. Concerning work experience, 95
individuals (29.6%) had less than two years of experience, 112 individuals (34.9%) had
between two and under five years, 70 respondents (21.8%) reported five to under ten years of
experience, and 44 participants (13.7%) had ten years or more. Regarding job positions, the
majority of respondents were staff-level employees (207 people, 64.5%), followed by
department heads (83 people, 25.9%), and directors (31 people, 9.6%). In terms of enterprise
ownership, 175 respondents (54.5%) were employed in private enterprises, while 146
respondents (45.5%) worked in foreign-invested [Link] are summarized in
Appendix 1.
6
4.2. Assessment of Measurement Scale Reliability
In this study, the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique
was employed by the research team for data analysis, utilizing Smart-PLS software version
4.0. The research team adhered to the criteria outlined in a prior publication (Ali & Raza,
2017). The team also applied a bootstrapping method with 5,000 samples to determine the
significance level for each path coefficient. The measurement model's evaluation was
conducted through reliability and validity checks of the constructs. As demonstrated in Table
1, most factor loadings were significant, with the majority of values exceeding 0.7, aligning
with the suggested criterion (Hair et al.,2012; Nunnally,1994). The Cronbach's Alpha
coefficient for all constructs surpassed the 0.7 threshold. This indicates that the measurement
scales are reliable for all factors within the model.
Table 1: Preliminary Evaluation Results of the Measurement Scale
Factor Cronbach’s KMO Lowest Sig. Total Lowest
Alpha Item-Total Variance Factor
Correlation Explained Loading
(%)

CC 0,881 0,832 0,714 0,000 73,763 0,840

SL 0,829 0,821 0,550 0,000 54,035 0,691

IL 0,767 0,699 0,595 0,000 68,223 0,823

GI 0,790 0,683 0,564 0,000 70,464 0,791

GP 0.724 0,659 0,510 0,000 64,478 0,776

Source: compilations by the authors


4.3. Results of Measurement Model Analysis

Evaluating the measurement model for the first-order latent variables, the results show that
the individual factor loadings (Outer loadings) of the measurement scales are greater than 0.5
(see Table 2), and the Average Variance Extracted (AVE) values are also all above the
recommended threshold of 0.5... Furthermore, all Composite Reliability (CR) values exceed
0.7. Therefore, the scale reliability of the factors is also established according to prior research
(Fornell & Lacker, 1981; Bagozzi & Yi, 1988) (see Table 3).

Table 2: Outer Loadings of the Measurement Model


GP IL SL GI CC CC x SL
GP1 0,854
GP2 0,781
GP3 0,772
IL1 0,789

7
IL2 0,811
IL3 0,869
SL1 0,721
SL2 0,745
SL3 0,764
SL4 0,662
SL5 0,857
SL6 0,575
GI1 0,858
GI2 0,851
GI3 0,807
CC1 0,864
CC2 0,829
CC3 0,907
CC4 0,822
CC x 1,000
SL

Source: compilations by the authors

Table 3: Cronbach’s Alpha, Composite Reliability (CR), and Average Variance


Extracted (AVE) of the Constructs

Cronbach’s Alpha Composite Reliability Average Variance Extracted

CC 0,881 0,916 0,733

SL 0,829 0,868 0,527

IL 0,767 0,863 0,678

GI 0,789 0,877 0,704

GP 0,723 0,845 0,645


Source: compilations by the authors

The Heterotrait–Monotrait ratio of correlations (HTMT) was used to assess discriminant


validity among the constructs in the model. According to Henseler et al. (2009), when the
HTMT value is below 0.85, the constructs are considered to be empirically distinct. The results
presented in Table 4 show that all HTMT values are below the threshold of 0.85, confirming
that discriminant validity has been established for all constructs (Henseler et al., 2015).

Table 4: Heterotrait–Monotrait Ratio (HTMT) Matrix

GP IL SL GI CC
GP
IL 0,696
8
SL 0,240 0,221
GI 0,598 0,295 0,250
CC 0,118 0,140 0,063 0,062
CC x 0,324 0,266 0,163 0,332 0,044
SL

Source: compilations by the authors


Multicollinearity is a common phenomenon that occurs when there is a high correlation
between two or more independent variables in the model. Evaluating multicollinearity is
especially important for studies because when there is multicollinearity, the relationship
between independent variables and dependent variables is affected by other variables. In
Smart-PLS software, the existence of multicollinearity can be determined through the VIF
Index Results table. All factors in the relationship in this study have VIF coefficients of less
than 2, so there is no multicollinearity in the research model (see Table 5).

Table 5: VIF result


GP IL SL GI CC
GP
IL 1,058
SL 1,015 1,015
GI 1,058
CC 1,001 1,001
Source: compilations by the authors
4.4. Structural Model Results
The hypothesized relationships between the proposed constructs were evaluated using
structural equation modeling through path analysis. Regarding the findings in Table 6, out of
the 06 direct relationships, only 01 relationship was rejected.
Table 6: Structural Model Prediction Results

Hypothesis Relationship Path Observed P values [Link] Results


Coeffici -T values
ent
H1 SLGI 0,255 4,198 0,000 **** Accepted
H2 SLIL 0,251 4,765 0,000 **** Accepted
H3 GIGP 0,352 7,214 0,000 **** Accepted
H4 ILGP 0,450 8,578 0,000 **** Accepted
CCIL -0,104 1,760 0,078 * -
CCGI -0,012 0,163 0,871 Not -
statistically
significant
H5 CCxSLIL 0,245 4,256 0,000 **** Accepted
H6 CCxSLGI 0,306 4,842 0,000 **** Accepted

Notes: **** p <.001, *** p <.010, **p <.050, *p <.100


Source: compilations by the authors
Hypothesis H1, SL→GI, has a positive and significant result. This implies that H1 is
accepted (Path coefficient = 0.255, p < 0.001). H1 hypothesizes that SL has a positive effect on
employee GI.
9
Hypothesis H2, SL→IL, also has a significant and positive result. This implies that
hypothesis H2 has been accepted (Path coefficient = 0.251, p < 0.001). Hypothesis H2 states
that GI has a positive effect on organizational GP.
Hypothesis GI→GP (hypothesis H3) has a positive result and has a higher value than
the above 2 hypotheses. Thus, hypothesis H3 has been accepted with a path coefficient of
0.352, p < 0.001.
H4, the the hypothesis IL→GP, also has a positive result and has the highest value.
Thus, hypothesis H4 has been accepted with a path coefficient of 0.450, p < 0.001 (see Table
6).
The path SL→GI→GP has an indirect effect coefficient of 0.090, which is smaller than
the indirect effect coefficient of the path SL→IL→GP, which is 0.113. Therefore, the IL factor
plays a larger mediating role than the GI factor (see Table 7).
CC factor has a positive and significant impact on both GI and IL factors with
coefficients of 0.306 and 0.245, respectively. Thus, the moderating effect of CCxSL on IL and
GI is statistically significant. Thus, hypotheses H5 and H6 have sufficiently statistical basis to
be accepted (see Table 6 and Figure 2).
Table 7: Mediation Relationships Table

Standardized Mean Standard T-statistic P values


Coefficients(O) (M) Deviation Test
( STDEV) (|O/STDEV|)
SLGIGP 0,090 0,090 0,024 3,710 0
SLILGP 0,113 0,115 0,028 3,985 0
Source: compilations by the authors

Fig. 2: Research Findings

Source: compilations by the authors

5. Conclusion and Managerial Implications


In this study, the author proposed a model of factors affecting the green performance of
the organization, focusing on the role of environmentally oriented servant leadership,
employees' green innovation and informal leader’s role. The results of the study showed that
environmentally oriented servant leadership has a positive impact on both employees' green
innovation and informal leader’s role. At the same time, employees' green innovation and
informal leader’s role both have a positive impact on the green performance of the
organization. The results of this study show similar values to previous studies by authors such
as Chen et al. (2014), Walls & Berrone (2017) and Liden et al. (2008) as it continues to affirm
the role of environmentally oriented servant leadership and employees' green innovation in
promoting sustainable development. However, this study has contributed to the theoretical
10
implications by showing a certain influence on the informal leadership group - a group that has
received little attention in previous studies.
The main difference of this study is the emphasis on the mediating role of employees'
green innovation and informal leader’s role in the relationship between environmentally
oriented servant leadership and organizational green performance. This difference can be
explained by the research context in Vietnam - where the organizational culture tends to
emphasize the spirit of collectivism and the informal role of individuals in the organization.
In particular, the study also clarifies the moderating role of commitment capital in the
relationship between environmentally oriented servant leadership and employees' green
innovation. Specifically, when commitment capital is high, the positive impact of
environmentally oriented servant leadership on green innovation becomes more evident, with a
p-value of less than 0.05, reinforcing hypothesis H6. Simple slope analysis shows that CC
enhances this impact at different levels (above, equal to, or below one standard deviation),
indicating the supporting role of internal commitment to green leadership efforts and green
innovation in the organization. Based on the research results, the author proposes a number of
recommendations to promote green performance in the organization.
To enhance green innovation and green performance of the organization, leaders need
to develop a system of specific, feasible, and practical green criteria. At the same time, it is
necessary to implement in-depth training programs on green initiatives, combined with
periodic monitoring, evaluation, and flexible adjustment mechanisms to ensure the
effectiveness and sustainability of innovation activities.
For the group of solutions to promote green innovation of employees, it is necessary to
focus on raising awareness and training skills related to green innovation; establishing
appropriate incentive and motivation mechanisms; building a green organizational culture,
promoting cooperation and knowledge sharing among departments; and implementing
activities to monitor, respond to and periodically improve green initiatives in the organization.
For State management agencies and Associations, there should be solutions to promote
the development of service leadership and green innovation. Specifically, the State needs to
improve the legal system, develop a strategy to raise public awareness and create conditions
for the private sector to participate in green transformation. Associations need to support
businesses to improve their green leadership and innovation capacity through training and
seminars; coordinate with universities in research and training; establish awards to recognize
contributions in this field; and build a mechanism to monitor and evaluate the effectiveness of
green policies and initiatives.
In addition to certain theoretical and practical contributions, the study still has some
limitations.
First, the study has not considered more diverse contexts. Future studies can overcome
this by conducting surveys in many regions, countries and territories with different
characteristics to draw more comprehensive and general conclusions.
Second, although the study focused on the factors of servant leadership, green
innovation and committed capital, there is still a lack of integration of external factors such as
government policies, market pressures or technological changes. Future studies can consider
combining these factors to increase the practical applicability of the model.
Third, the study did not delve into a specific industry or market segment. The
exploitation of classified data from demographic groups was also not done, leading to
limitations in better understanding the level of influence of variables on each target group.

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Appendix 1: Sample Descriptive Statistics

Criterion Information Quantity Percentage (%)

Male 165 51,4


Gender
Female 156 48,6

Company Size (Number of 100  200 employees 104 32,4


employees)
200  300 employees 131 40,8
16
300  450 employees 86 26,8

Less than 2 years 95 29,6

2 5 years 112 34,9


Employee work experience
5  10 years 70 21,8

10 years or more 44 7,8

Employee 207 64,5

Position in the company Department Head 83 25,9

Director 31 9,6

Private Company/ Foreign Private 175 54,5


Investment Foreign Investment 146 45,5

17

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