Commitment Capital's Role in Green Leadership
Commitment Capital's Role in Green Leadership
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
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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
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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).
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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.
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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
(%)
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).
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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
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
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