Situational leadership, green innovation, and corporate culture as drivers of corporate sustainability: The mediating role of green perceived organizational support

Abstract

The palm oil industry is vital to Indonesia’s economy, but it has drawn international scrutiny over environmental sustainability. Environmental problems such as pollution and deforestation are showing how effective sustainable business practices can be. The present study investigates how situational leadership, green innovation, and corporate culture impact corporate sustainability, with green perceived organizational support as a mediator. A quantitative design with data from a survey of 398 employees in palm oil companies in Sumatra and Kalimantan was analyzed using PLS-SEM. Results indicate that situational leadership, green innovation, and corporate culture positively contribute to corporate sustainability, both directly and indirectly, through supporting the organizational arrangement for environmental policies, or green perceived organizational support, which strengthens staff commitment to sustainability. This study advances theories by adopting a three-factor model that encompasses macro-level constructs, specifically leadership and culture, coupling them with micro-level determinants such as innovation in the context of corporate sustainability in industries where higher levels of scrutiny are directed towards their environmental impact, whilst also positioning green perceived organizational support as a dominant mediating variable within the palm oil sector. It adds to sustainability management literature and derives implications for future studies on green organizational behavior in emerging economies such as Indonesia.