Green supply chain management and firm sustainable performance: unlocking the role of transactional and transformational leadership in firm sustainable operations

Companies are adopting innovative and environmentally friendly methods and technologies to mitigate the adverse effects of their products and services on the natural environment. Various internal and external factors influence a company’s ability to comply with such sustainability standards. This study specifically examines the connection between a company’s sustainable supply chain operations and a crucial internal factor, namely leadership. It focuses on comparing and contrasting the impacts of transformational and transactional leadership on green supply chain management (GSCM) and the overall sustainable performance of the company. Using a quantitative approach, the author conducted surveys among employees and managers and utilized structural equation modeling to analyze the model. The findings indicate that transformational leadership significantly impacts GSCM practices and sustainable organizational performance (OSP). However, the association between transactional leadership and GSCM is relatively weak. Additionally, it is observed that GSCM positively contributes to OSP. The results emphasize the importance of upper-level management involvement in green initiatives, particularly GSCM, to enhance the company’s environmental performance and ensure its long-term sustainability. Transformational leadership serves as a driving factor in ensuring sustainability in a firm supply chain performance. Transactional leadership has a relatively weak role in organizational sustainable supply chain performance. A firm’s sustainable supply chain performance strengthens its capabilities to improve its environmental performance. A firm’s Top management must take constructive measures to ensure sustainability in their supply chain for improved environmental performance. Transformational leadership serves as a driving factor in ensuring sustainability in a firm supply chain performance. Transactional leadership has a relatively weak role in organizational sustainable supply chain performance. A firm’s sustainable supply chain performance strengthens its capabilities to improve its environmental performance. A firm’s Top management must take constructive measures to ensure sustainability in their supply chain for improved environmental performance.