Impact of perceived organizational support and green transformational leadership on sustainable organizational performance: a SEM approach

PurposeThe study aims to scrutinize the concomitant associations between corporate social responsibility (CSR), perceived organizational support (POS), green transformational leadership (GTL) and organizational performance (OP). This paper aims to explore the role of intervening variable to measure the strength on the relationship between CSR and OP.Design/methodology/approachThis research administered a survey through self-administered questionnaire among the staff-level employees of construction companies of Nepal. Fully filled 305 responses from the participants were analyzed using a structural equation model. The study used self-structured questionnaire as research tool and face-to-face meetings as data collection technique.FindingsThe research indicates that POS showed competitive partial mediation relation between CSR and OP. Besides, a novel exploration of the moderation effect of GTL displays a supportive role in harmonizing the CSR with organizational support to achieve better OP. This study enriches empirical evidence to understand the linkage between CSR and POS in staff-level employees in the construction area. Moreover, the research shed a light on GTL 's moderating influence on the mediated model of CSR, POS and OP.Research limitations/implicationsAlthough the results of the study add to the current knowledge base, several limitations highlight avenues for future research. Future studies can explore the relationship in other study areas with added evidence on a similar result with different analysis patterns and study sample. The research model studied in the context of Nepal creating evidence as a representation for the developing countries.Originality/valueThe intervening role of POS and GTL gives new insight for the research-based organization based social behavior and performance

[1]  P. Shrout,et al.  Mediation in experimental and nonexperimental studies: new procedures and recommendations. , 2002, Psychological methods.

[2]  K. Backman,et al.  Detecting common method bias in predicting creative tourists behavioural intention with an illustration of theory of planned behaviour , 2019 .

[3]  Osman M. Karatepe,et al.  The effects of organization mission fulfillment and perceived organizational support on job performance , 2016 .

[4]  M. Sarstedt,et al.  A new criterion for assessing discriminant validity in variance-based structural equation modeling , 2015 .

[5]  R. Imran,et al.  Entrepreneurial leadership: a missing link between perceived organizational support and organizational performance , 2020, World Journal of Entrepreneurship, Management and Sustainable Development.

[6]  C. Borland,et al.  Effect Size , 2019, SAGE Research Methods Foundations.

[7]  Khawaja Fawad Latif,et al.  Revisiting the relationship between corporate social responsibility and organizational performance: The mediating role of team outcomes , 2020, Corporate Social Responsibility and Environmental Management.

[8]  S. Shanmugapriya,et al.  Developing a PLS path model to investigate the factors influencing safety performance improvement in construction organizations , 2016 .

[9]  W. Visser.  Corporate Social Responsibility in Developing Countries , 2008 .

[10]  Amos Darko,et al.  How Does Transformational Leadership Promote Innovation in Construction? The Mediating Role of Innovation Climate and the Multilevel Moderation Role of Project Requirements , 2018 .

[11]  Li Zhang,et al.  Job strains, job control, and POS on employee performance: An interactionist perspective , 2018 .

[12]  F. Stinglhamber,et al.  The relationship between perceived organizational support and proactive behaviour directed towards the organization , 2016 .

[13]  Andrew M. Farrell,et al.  Insufficient Discriminant Validity: A Comment on Bove, Pervan, Beatty and Shiu (2009) , 2008 .

[14]  F. Stinglhamber,et al.  Employees’ Organizational Identification and Affective Organizational Commitment: An Integrative Approach , 2015, PloS one.

[15]  Z. Bhatti,et al.  How Perceived Corporate Social Responsibility Affects Employee Cynicism: The Mediating Role of Organizational Trust , 2018, Journal of Business Ethics.

[16]  J. Frynas,et al.  Political Corporate Social Responsibility: Reviewing Theories and Setting New Agendas , 2015 .

[17]  Ayman Bahjat Abdallah,et al.  Green supply chain management and business performance , 2019, Bus. Process. Manag. J..

[18]  Empowering Employee Sustainability: Perceived Organizational Support Toward the Environment , 2015 .

[19]  Gholamhossein Mehralian,et al.  The effects of corporate social responsibility on organizational performance in the Iranian pharmaceutical industry: The mediating role of TQM , 2016 .

[20]  Muhammad Asrar‐ul‐Haq,et al.  How corporate social responsibility boosts firm financial performance: The mediating role of corporate image and customer satisfaction , 2019, Corporate Social Responsibility and Environmental Management.

[21]  Alison Mackey,et al.  Taking Responsibility for Corporate Social Responsibility: The Role of Leaders in Creating, Implementing, Sustaining, or Avoiding Socially Responsible Firm Behaviors , 2014 .

[22]  Joseph F. Hair,et al.  When to use and how to report the results of PLS-SEM , 2019, European Business Review.

[23]  Gregory W. Allen,et al.  Transformational leadership and affective organizational commitment: mediating roles of perceived social responsibility and organizational identification , 2017 .

[24]  Jean‐Pascal Gond,et al.  The psychological microfoundations of corporate social responsibility: A person-centric systematic review , 2017 .

[25]  ศิวะพร ภู่พันธ์,et al.  Research Design: Qualitative, Quantitative, and Mixed Methods Approaches , 2018 .

[26]  Won‐Moo Hur,et al.  The Role of Job Crafting and Perceived Organizational Support in the Link between Employees’ CSR Perceptions and Job Performance: A Moderated Mediation Model , 2019, Current Psychology.

[27]  Chendi Zhang,et al.  Corporate Social Responsibility and Firm Risk: Theory and Empirical Evidence , 2012, Manag. Sci..

[28]  S. Salminen,et al.  Percieved organisational support: an African perspective , 2009 .

[29]  V. Crisóstomo,et al.  Corporate social responsibility, firm value and financial performance in Brazil , 2011 .

[30]  A. Carroll,et al.  The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice , 2010 .

[31]  Jennifer H. Gao.  Relating Corporate Social Responsibility and Employee Engagement: The Mediating Role of Perceived Organizational Support and Chinese Values , 2014, Int. J. Asian Bus. Inf. Manag..

[32]  Richard B. Nyuur,et al.  Corporate social responsibility and financial performance: Fact or fiction? A look at Ghanaian banks , 2014 .

[33]  Cheng‐hung Tsai,et al.  Evidence in Asian Food Industry: Intellectual Capital, Corporate Financial Performance, and Corporate Social Responsibility , 2020, International journal of environmental research and public health.

[34]  Murad Ali,et al.  Transformational leadership, corporate social responsibility, organizational innovation, and organizational performance: Symmetrical and asymmetrical analytical approaches , 2018, Corporate Social Responsibility and Environmental Management.

[35]  Noor Azizi Ismail,et al.  The moderating role of trust in business to business electronic commerce (B2B EC) adoption , 2017, Comput. Hum. Behav..

[36]  P. Bentler,et al.  Fit indices in covariance structure modeling : Sensitivity to underparameterized model misspecification , 1998 .

[37]  Weisheng Lu,et al.  Corporate social responsibility “glocalisation”: Evidence from the international construction business , 2020, Corporate Social Responsibility and Environmental Management.

[38]  Status of corporate social responsibility in selected Nepalese companies , 2012 .

[39]  Mohammad Nurunnabi,et al.  The Impact of Transformational Leadership on Job Performance and CSR as Mediator in SMEs , 2019, Sustainability.

[40]  S. Singh,et al.  Green innovation and environmental performance: The role of green transformational leadership and green human resource management , 2020 .

[41]  Zulma Medina-Rivera,et al.  Corporate Social Responsibility Practices and Programs as a Key Strategic Element in Organizational Performance , 2017 .

[42]  Herman Aguinis,et al.  What We Know and Don’t Know About Corporate Social Responsibility , 2012 .

[43]  Yiik Diew Wong,et al.  Interaction impacts of corporate social responsibility and service quality on shipping firms’ performance , 2018, Transportation Research Part A: Policy and Practice.

[44]  C. D. Ditlev-Simonsen.  The Relationship Between Norwegian and Swedish Employees’ Perception of Corporate Social Responsibility and Affective Commitment , 2015 .

[45]  Chung-Fah Huang,et al.  An empirical analysis of the influences of corporate social responsibility on organizational performance of Taiwan’s construction industry: using corporate image as a mediator , 2012 .

[46]  Yu-Shan Chen,et al.  The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity , 2013 .

[47]  Michel Tenenhaus,et al.  PLS path modeling , 2005, Comput. Stat. Data Anal..

[48]  A. Glavas,et al.  Corporate Social Responsibility and Employee Engagement: Enabling Employees to Employ More of Their Whole Selves at Work , 2016, Front. Psychol..

[49]  C. Fornell,et al.  Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics , 1981 .

[50]  Willem E. Saris,et al.  Choosing the Number of Categories in Agree–Disagree Scales , 2014 .

[51]  Abraham Carmeli,et al.  The Role of Perceived Organizational Performance in Organizational Identification, Adjustment and Job Performance , 2007 .

[52]  Tae-Hyun Kim,et al.  The Influence of Corporate Social Responsibility on Organizational Commitment: The Sequential Mediating Effect of Meaningfulness of Work and Perceived Organizational Support , 2018, Sustainability.

[53]  B. Obeidat,et al.  The Impact of Transformational Leadership on Organizational Performance via the Mediating Role of Corporate Social Responsibility: A Structural Equation Modeling Approach , 2016 .

[54]  Yanni Yu,et al.  The Influence of Perceived Corporate Sustainability Practices on Employees and Organizational Performance , 2014 .

[55]  Transformational Leader Behaviors and Substitutes for Leadership as Determinants of Employee Satisfaction, Commitment, Trust, and Organizational Citizenship Behaviors , 1996 .

[56]  Kathy Babiak,et al.  CSR and environmental responsibility: motives and pressures to adopt green management practices , 2011 .

[57]  Matthew S. Fritz,et al.  Mediation analysis. , 2019, Annual review of psychology.

[58]  M. Loosemore,et al.  Linking corporate social responsibility and organizational performance in the construction industry , 2017 .

[59]  Jurij Jaklic,et al.  Business intelligence and organizational performance: The role of alignment with business process management , 2020, Bus. Process. Manag. J..

[60]  Marc Ohana,et al.  Corporate social responsibility and employees’ affective commitment , 2019, Management Decision.

[61]  O. Farooq,et al.  The Impact of Corporate Social Responsibility on Organizational Commitment: Exploring Multiple Mediation Mechanisms , 2014 .

[62]  Joseph Sarkis,et al.  Corporate social responsibility governance, outcomes, and financial performance , 2017 .

[63]  R. Drozdenko,et al.  Relationships among Perceived Organizational Core Values, Corporate Social Responsibility, Ethics, and Organizational Performance Outcomes: An Empirical Study of Information Technology Professionals , 2010 .