International Journal of Management and Sustainability

The role of transformational leadership and motivation in enhancing meaningful employee performance

2025-12-04T21:22:25-06:00

Studies on transformational leadership and employee performance, with motivation as a key mediator, have been extensively investigated because inspiring leadership can enhance employees' intrinsic motivation, which in turn positively impacts their performance. Understanding motivation's role as a mediator enables organizations to design more effective leadership strategies that optimize employee productivity and engagement. The orientation of this study is to investigate the relationship between motivation and the effect of transformational leadership on employee performance within the Indonesian manufacturing sector. An explanatory research design was employed, involving a sample of 170 employees chosen using an incidental sampling technique. Data were obtained through a structured questionnaire and evaluated using Structural Equation Modeling (SEM) with Analysis of Moment Structures (AMOS) software to test the hypothesized relationships among variables and perform Confirmatory Factor Analysis (CFA). The findings indicate that both transformational leadership and motivation have a significant impact on employee performance. Furthermore, motivation is found to mediate the relationship between transformational leadership and employee performance, highlighting its pivotal role in enhancing individual outcomes. This study contributes to the growing body of literature by emphasizing the importance of motivation as a mechanism through which transformational leadership can drive optimized performance. The results underscore the need for organizations to cultivate transformational leadership practices that not only inspire but also strengthen employees’ self-esteem and self-confidence. Such strategies facilitate behavioral transformation and the development of employee potential, ultimately leading to maximized organizational performance and reinforcing the effectiveness of transformational leaders.

Stem CEOs and financial distress: An analysis of leadership, innovation, and risk in corporate financial performance

2025-12-30T23:42:15-06:00

This paper examines whether CEOs with STEM backgrounds have a relationship with corporate financial distress, using 2022 data from Sustainalytics ESG Risk Ratings. Our findings reveal that companies led by STEM CEOs exhibit a statistically higher Altman Z-Scores, indicating a lower risk of financial distress. It shows that STEM CEOs contribute to financial resilience through structured innovation, operational efficiency, and disciplined investment strategies because of their analytical minds and long-term orientation. The study finds that STEM CEOs are more likely to adopt data-driven and future-driven decision-making frameworks, which help maintain financial stability even in volatile markets. Our heterogeneity analysis reveals that the positive impact of STEM leadership is more significant among firms in developed countries, firms led by male CEOs, smaller firms, firms with smaller boards, and firms with lower levels of innovation. These results are robust to multiple tests, including Coarsened Exact Matching (CEM), Propensity Score Matching (PSM), and Two-Stage Least Squares (2SLS) instrumental variable regression. This study contributes to the leadership and corporate finance literature by showing how a STEM CEO’s educational background can impact firm-level financial outcomes. The findings also offer practical implications for corporate governance, talent selection, and policy interventions to promote financial resilience through STEM leadership.

Green employees’ relation practices and organisational sustainability of selected oil companies in South-South Nigeria

2025-12-31T00:12:15-06:00

This study examined the interlinkage between green employee relations practices and organizational sustainability of selected oil companies in South-South Nigeria. Anchored on human capital and resource-based theories, the research assessed the effect of green recruitment, green training, green performance appraisal, and green compensation on the sustainability of the Nigerian oil industry. The population comprised 1,318 employees across five selected oil companies in the oil-rich region of Nigeria, with a sample size of 307 determined through Taro Yamane’s technique and the table of random numbers. The reliability and validity of the research instruments were confirmed. Data were analyzed using descriptive and inferential statistics, with multiple regressions deployed to test the hypotheses. Findings revealed significant positive relationships between: green recruitment and organizational sustainability (β = 0.256, t = 7.540); green training and organizational sustainability (β = 0.115, t = 4.491); green performance appraisal and organizational sustainability (β = 0.662, t = 19.130); and green compensation and organizational sustainability (β = 0.096, t = 3.631). The study emphasizes the strategic importance of institutionalizing green hiring, green training, green reward structures, and green appraisal systems as essential strategies to promote and enhance the long-term sustainability of oil companies in the South-South geopolitical zone of Nigeria.

The impact of charismatic leadership on team performance: A study of sustainability of small and micro enterprises in China

2025-12-31T00:46:17-06:00

Small and micro enterprises (SMEs), serving as a major catalyst for economic and social advancement, play an irreplaceable role in promoting employment, technological innovation, and stimulating market vitality. Team performance is a key indicator for measuring the sustainable development level of SMEs, and the effectiveness of internal teams has a significant influence on determining their competitive standing and long-term development path. Charismatic leadership, as an important leadership style, is considered to have a unique role in motivating employees, promoting innovation, and facilitating team development through personal charm, influence, and appeal. This research centers on SMEs in China and explores how charismatic leadership affects team performance, particularly emphasizing the role played by team learning and team cohesion as intermediaries in this connection. The study gathered data via responses to a structured questionnaire completed by managers and employees within SMEs in Guangdong Province. The analysis shows that: (1) Charismatic leadership clearly enhances team performance in SMEs; (2) Team learning and team cohesion act as intermediaries through which charismatic leadership positively impacts team performance. The study clarifies the process through which charismatic leadership enhances team performance by fostering team learning and improving team cohesion, thereby not only enriching the theoretical framework regarding leadership behaviors and team effectiveness but also offering practical insights for SMEs to improve team performance and achieve sustainable development by cultivating charismatic leaders.

Green supply chain management and green creativity: Implications for sustainability

2025-12-31T01:48:42-06:00

The purpose of this paper was to examine the beverage business in Iraq and the connections between green supply chain management, green creativity, barriers to green supply chain management, and sustainability in supply chain management. The objective was to investigate the interactions among these elements to affect the results of sustainability in this particular industrial sector in Iraq. The paper included 248 participants, all of whom were employees in Baghdad Soft Drinks Company, which is a private joint-stock company. Structured questionnaires based on validated scales were used to collect data. Data were analyzed using Stata structural equation modeling to examine direct and mediated effects between research variables (GSCM, GC, SSCM). The findings show that GSCM improves SSCM, and GC partially helps explain this link. BGCM is also useful in moderating the connection between GSCM and SSCM. Therefore, it is necessary to eliminate the barriers in order to maximize the impact of the environment on the Iraqi beverage industry. This article explores sustainability and how it would be used to improve the supply chain strategy using innovative approaches. It shows how Iraqi beverage companies, with the assistance of green methods, may overcome obstacles and guarantee a high degree of sustainability with long-term environmental, social, and economic impacts.

A content analysis of sustainability reporting: A pathway to advancing low-carbon cities development in Malaysia

2025-12-31T04:40:29-06:00

Low-carbon cities represent a vital agenda of sustainable development, aligned with the United Nations Sustainable Development Goals (SDGs) and prioritized under the 12th Malaysia Plan. Although many local authorities have initiated programs to promote low-carbon development, limited secured funding remains a constraint. To attract private investment, effective communication, especially through public documents like annual reports, remains essential but is currently underutilized. Past research has found that disclosure of low-carbon initiatives by Malaysian local authorities is often limited, inconsistent, and varies widely. This is partly due to differences in how report preparers interpret and balance local priorities with global sustainability expectations. Consequently, stakeholders may face difficulties in evaluating these initiatives during the decision-making process. This study examines the annual reports of Malaysian local authorities, focusing on three objectives: to assess the comprehensiveness of disclosure, evaluate compliance with reporting guidelines, and identify variations in reporting practices. The analysis highlights similarities in core content elements but reveals differences in how low-carbon initiatives are reported, the level of compliance with guidelines, stakeholder inclusion, and the use of financial indicators. These variations reflect the differing contexts, capacities, and strategic priorities of local jurisdictions. The study offers insights into the current state of sustainability reporting among Malaysian local authorities and serves as a benchmark to improve transparency and consistency. It highlights the need for transparent and comprehensive reporting to meet stakeholder expectations and strengthen commitment to the SDGs, while also acting as a critical step toward securing private financing for sustainable development initiatives.

Cultural boundary conditions in SSCM: Bridging western theory and local practice

2025-12-31T05:11:24-06:00

This study investigates how sustainable supply chain management (SSCM) theories developed in Western contexts perform in hierarchical and relationship-oriented cultures, with Thailand as the empirical setting. The purpose is to identify cultural boundary conditions that influence whether market orientation, dynamic capabilities, and managerial commitment lead to sustainable practices and performance outcomes. A quantitative explanatory design was applied, combining survey data from 159 publicly listed firms across eight industries with secondary sustainability performance disclosures. Partial least squares structural equation modeling (PLS-SEM) and confirmatory composite analysis (CCA) were used to ensure measurement validity and test hypotheses. Three key findings emerge. First, market orientation and dynamic capabilities significantly predict managerial commitment, explaining 80.3 percent of its variance and showing cross-cultural robustness at the managerial cognition level. Second, a cultural implementation paradox is identified, as managerial commitment does not translate into sustainable practice adoption, reflecting authority–consensus disconnections common in hierarchical contexts. Third, sustainable practices negatively affect social performance while showing no significant impact on economic or environmental outcomes, indicating social disruption effects that challenge the universality of the triple bottom line framework. The practical implication is that multinational firms and policymakers in emerging markets should adapt Western SSCM models to local contexts, preserving social capital and aligning with consensus-based decision-making.

Do managerial abilities matter? Evidence from U.S. bank loans and corporate sustainability

2025-12-31T08:06:16-06:00

This study examines how managerial abilities affect the link between the cost of bank loans and corporate sustainability. We contend that sustainability activities reduce the cost of bank loans, and that this effect depends on managerial abilities and the company's credit quality. Using a U.S. dataset of 3,537 bank loan facilities, we conduct different multivariate regressions to test our predictions. Our findings reveal that corporate sustainability significantly decreases the cost of bank loan financing for firms with high managerial abilities relative to those with low managerial abilities. Furthermore, we found that corporate sustainability significantly decreases the bank loan financing cost for high-quality borrowers with high managerial abilities relative to low-quality borrowers with low managerial abilities. Overall, this research contributes to the literature by showing that the impact of corporate sustainability practices on the cost of bank loans does not only depend on the borrower's credit quality, as shown in prior empirical studies, but also on managerial abilities. Firms with both high credit quality and high managerial abilities enjoy lower bank loan costs. Our results have important implications. In particular, they provide valuable insights for firms seeking to improve their borrowing conditions, bankers aiming to assess borrowers’ quality, and policymakers looking to promote corporate sustainable behavior.

Digital leadership, it support, and organizational learning capability: The mediating role of knowledge sharing

2025-12-31T09:06:05-06:00

The accelerating pace of digital transformation and globalization has placed significant pressure on organizational innovation sustainably. This study investigates the extent to which Digital Leadership (DL), IT Support (ITS), and Knowledge Sharing (KS) contribute to the development of Organizational Learning Capability (OLC). The research was conducted in South Korea’s Daegu Industrial Area, with a focus on the automobile industry. The survey consisted of a total of 355 respondents, providing insights into their perceptions of IT support, digital leadership, and knowledge-sharing practices within their organizations. The study employed partial least squares structural equation modeling (PLS-SEM) to analyze research data. Grounded in the Resource-Based View (RBV) theory, the study found that both DL and ITS substantially and positively influence KS, which in turn substantially influences OLC. Moreover, the analysis revealed that KS fully mediates the relationships between DL and OLC, as well as between ITS and OLC. These findings emphasize the central role of KS in boosting sustainable OLC. The findings provide meaningful understanding for managers seeking to align KS initiatives with their organizations' strategic objectives. By simultaneously examining the interrelationships among DL, ITS, KS, and OLC, this study extends prior empirical research and provides actionable recommendations for strengthening sustainable OLC in digitally advanced business settings. The study provides useful insights to foster OLC by replacing old and obsolete learning methods to remain sustainably competitive in terms of innovation and creativity. However, the digital work environment of South Korea may limit the applicability of the findings to other work environments.

Technological innovation and SME performance: Mediating roles of digital transformation & resource integration, moderating roles of strategic orientation & market dynamics

2025-12-31T10:10:38-06:00

This study aims to investigate the impact of technological innovation (TI) on the performance of small and medium-sized enterprises (SMEs), while exploring the mediating roles of digital transformation (DT) and resource integration (RI), and the moderating effects of strategic orientation (SO) and market dynamics (MD). A quantitative research design was adopted using a structured questionnaire distributed to employees working in various Chinese companies. The population consisted of full-time employees across diverse industries in urban China. A sample of 412 respondents was selected using stratified random sampling to ensure representation across sectors. A structured questionnaire was administered to key managerial respondents, and the data were analyzed using SmartPLS structural equation modeling (SEM). Measurement scales were adapted from established studies to ensure validity and reliability of constructs. The results confirmed that TI has a significant positive impact on SME performance. Additionally, DT and RI were found to mediate this relationship effectively. The moderating analyses revealed that SO and MD significantly strengthen the positive effect of TI on performance, underscoring the importance of internal strategic alignment and responsiveness to external environments. This study advances the literature by integrating Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) to explain how SMEs can leverage innovation for superior outcomes. Beyond theoretical contributions, the findings provide practical guidance for SME managers and policymakers on embedding innovation strategies, fostering digital transformation, and aligning resources to enhance sustainability and long-term growth in volatile markets.

Key factors influencing the success of mediation in the UK construction industry

2025-12-31T13:28:55-06:00

Mediation has become an essential mechanism for resolving construction disputes, providing a time-efficient and cost-effective alternative to arbitration and litigation. This study examines the determinants of the success rate of mediation in construction projects in the UK, with particular focus on mediator competence, power relations, pre-mediation preparation, communication, and confidentiality. The study employs a quantitative methodology, with hierarchical regression analysis as the primary analytical approach to assess the impact of these determinants. Data were collected from 387 construction professionals, selected through purposive sampling, including project managers, contractors, legal advisers, and mediators. The results indicated that mediator skills are a significant determinant of effective mediation, emphasizing the importance of specialization in construction disputes. Power imbalances among disputing parties create asymmetries in projects that can undermine fairness and hinder resolution. Pre-mediation preparation and effective communication skills significantly contribute to the development of successful conflict resolution procedures. Confidentiality in complex construction ventures fosters trust, encourages open communication, and reduces adversarial opposition. These findings have practical implications for improving the mediation process through targeted training and the integration of mediation to promote fairness and efficiency. Given the limitations of a cross-sectional design, which restricts the ability to assess long-term mediation outcomes, future research could adopt longitudinal designs to explore cross-cultural variations in mediation success.

Commitment to organizational career, career growth, and intention to quit: Evidence from IT professionals

2025-12-31T13:53:03-06:00

The research proposes to explore the nexus between Commitment to Organizational Career (COC) and Career Growth (CG). It also examines the role of Intention to Quit (IQ) amid COC and CG among IT professionals. The antecedents of the study variables (COC, CG, and IQ) were validated using Exploratory Data Analysis. The relationships among the study variables were identified using SEM. Multiple regression analysis was adopted to examine the mediating role of IQ. COC is a single-factor construct; career growth comprises dual factors (professional development, compensation, and career goals), while IQ is a single-factor variable. The results confirm that COC influences CG; the impact of COC on CG is significant and inverse. Notably, the role of IQ is non-significant in the relationship between COC and CG. The study provides practical insights by examining the proposed mediation model and could make at least three contributions. Firstly, it explored and validated the antecedents of variables (COC, CG, and IQ). Secondly, it expanded the understanding and influence of COC on CG. Thirdly, it suggests mechanisms to drive COC to mitigate impediments to CG and reduce IQ, which can help HR professionals design effective career advancement policies. Thus, leveraging insights from this study, organizations fostering career growth and minimizing turnover risks can create a sustainable and committed workforce.

Human resource capabilities as innovation strategy: Impact on business performance of batik SMEs in Indonesia

2025-12-31T14:22:48-06:00

This study explores the role of human resource capabilities as a catalyst for innovation strategy and their influence on the performance of Batik Small and Medium Enterprises (SMEs) in East Java, Indonesia. Using a quantitative approach, data were collected from 249 Batik SME owners and analyzed through Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that human resource competencies significantly and positively affect various dimensions of innovation strategy, including product, process, technological, organizational, and service innovations. These innovation strategies, in turn, enhance firm competitiveness and performance. Furthermore, the relationship between innovation and performance is moderated by marketing strategy, underscoring its strategic importance in maximizing innovation outcomes. Importantly, the study highlights how human resource-driven innovation promotes sustainability by supporting environmentally responsible practices, social inclusion, and cultural heritage preservation. By integrating the Resource-Based View and Dynamic Capabilities theories, this research demonstrates that human capital, particularly in traditional, labour-intensive sectors, forms the basis of multidimensional and sustainability-oriented innovation. The study contributes to the innovation literature by showing that different types of innovation follow distinct paths toward competitiveness and performance. It also challenges assumptions that marketing strategies always amplify innovation outcomes. In the context of sustainability research, the study underscores how culturally rooted human innovation in Batik SMEs fosters economic resilience, environmental consciousness, and socio-cultural continuity. These insights offer practical implications for SMEs, policymakers, and development agencies aiming to enhance the competitiveness and sustainability of heritage-based industries in evolving market landscapes.

A holistic model for measuring financial reporting quality in Sri Lanka

2025-12-31T15:21:38-06:00

High-quality financial reporting ensures that disclosed financial information is reliable, relevant, timely, and unbiased, enabling informed stakeholder decisions. The Qualitative Characteristics (QCs) approach, derived from the Conceptual Framework of Financial Reporting, is widely recognized as the most appropriate method to evaluate Financial Reporting Quality (FRQ). Accordingly, this study develops a context-specific FRQ measurement model based on QCs within the Sri Lankan context. The proposed model integrates fundamental (Relevance, Faithful Representation) and enhancing (Comparability, Verifiability, Timeliness, Understandability) characteristics. Data were collected through a questionnaire survey of 397 Sri Lankan investors with accounting knowledge. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to construct the model, supported by Exploratory and Confirmatory Factor Analyses for validation. Reliability and validity were assessed using indicator reliability, Average Variance Extracted (AVE), Cronbach’s alpha, composite reliability, Fornell–Larcker, and HTMT criteria. All QCs significantly influence FRQ, with relevance and faithful representation identified as primary drivers. The resulting model provides a holistic, IASB-aligned tool for assessing FRQ, supporting stakeholders in evaluating the decision usefulness of financial information. The findings are limited to investors with accounting knowledge, which may constrain generalizability. Future research could extend the model to diverse stakeholder groups.

Logistics management and e-commerce performance: A PLS-SEM analysis of Jumia operations, Abuja-Nigeria

2025-12-31T15:38:32-06:00

E-commerce performance is increasingly crucial in Nigeria’s rapidly expanding digital marketplace, yet logistics challenges persist, threatening the sustainability and competitiveness of leading firms like Jumia. Despite market growth, a gap exists in understanding how specific logistics management practices, particularly order processing and information flow, impact e-commerce performance in Abuja. This study aims to assess the effects of order processing and information flow on Jumia’s operational outcomes in Abuja, FCT. Employing a survey research design, data were collected from all 187 Jumia employees in Abuja using structured questionnaires. A partial least squares structural equation modeling (PLS-SEM) was used. Among the key findings, it is notable that the efficient processing of orders has a strong positive influence on Jumia's performance, increasing customer satisfaction and repeat purchases. Conversely, information flow within this study had a highly negative effect on performance, attributed to information overload and inefficiencies. It is not about the quantity or speed of information flow but its quality and management, contrasting traditional expectations. This observation indicates that Jumia’s logistics operations urgently need enhancement in information filtering and processing to maximize performance. Based on these insights, the study proposes that Jumia Nigeria should adopt new order management systems, streamline warehouse activities, and provide specialized staff training. Additionally, it is important to establish effective information filtering systems and communication channels to report incidents. These steps are likely to improve operational effectiveness, customer satisfaction, and the company's competitive position in Nigeria’s e-commerce industry.

The adoption of green HRM practices in Indonesian state-owned banks: A pathway to sustainable organizational performance

2025-12-31T15:55:28-06:00

Amid rising global urgency around sustainability, a critical question emerges: can Green Human Resource Management (GHRM) serve as a genuine driver of sustainable performance in public institutions, or is it merely a rhetorical gesture? This study explores the dynamic interplay between GHRM practices and organizational sustainability in Indonesia’s state-owned banks, positioning employee engagement as the mediating lever. Drawing on data from 260 civil servants and analyzed using Structural Equation Modeling (SEM), the findings reveal that GHRM significantly enhances both employee engagement (β = 0.59, p < 0.01) and sustainability outcomes (β = 0.33, p < 0.01). Notably, engagement also plays a pivotal mediating role (β = 0.35, p < 0.01), translating green strategies into tangible performance outcomes. The model demonstrates robust fit indices (CFI = 0.98, RMSEA = 0.067), affirming the structural coherence of the hypothesized paths. This inquiry delves beyond numeric validation, unpacking practices such as green recruitment, sustainability-driven training, ecologically aligned performance appraisals, and environmental incentive systems. It highlights how employees who find resonance between personal values and institutional sustainability missions are more inclined to actively contribute. In bureaucratic systems often perceived as rigid, these findings suggest a possible inflection point: that culturally grounded, participative HR strategies may catalyze ecological transformation in meaningful ways. Ultimately, this research offers empirical and conceptual value to public sector institutions seeking to embed sustainability into the fabric of HR systems, with engagement acting as both a bridge and a barometer.

Effect of ethical leadership in corporate tax leaders on corporate transparency, ESG management, and corporate performance

2025-12-31T16:16:50-06:00

This study aims to empirically assess the effect of ethical leadership in corporate tax leaders on corporate transparency, ESG management, and corporate performance. The research model was constructed, and hypotheses were formulated for structural equation analysis. This study used a total of 262 questionnaires collected from tax leaders in large South Korean companies. A research model was designed using structural equations, and results were derived through confirmatory factor analysis, correlation analysis, and path analysis. The analysis results verified that ethical leadership had a positive effect on corporate transparency and ESG management. However, ethical leadership in tax leaders had no direct impact on corporate performance. This study also proved that this leadership can be positively influenced by corporate transparency and ESG management activities and is not a direct determinant of corporate performance. Additionally, corporate transparency had no direct effect on corporate performance; however, it can be affected along with ESG management as a mediated factor through which the ethical leadership of tax leaders influences corporate performance. These results indicate that the implication is that ethical leadership in corporate tax management impacts corporate performance when corporate transparency and ESG management activities are reinforced, and its effectiveness is maximized as well. Further, it suggests that corporate tax leaders have a crucial role in maintaining financial transparency, fair tax management, and social responsibility.