The Effects of Transformational Leadership, Sustainability Innovation, and Green Practices on Green Performance Using Balanced Scorecard Approach

The global environmental crisis has intensified the need for sustainable business practices. While prior research emphasizes emissions reduction and green supply chains, the precursors to Organizational Green Practices (OGP) remain underexplored. This study investigates how Green Transformational Leadership (GTL) and Green Human Resource Management (GHRM) drive OGP and enhance Green Environmental Performance (GEP). The research introduces the Green Balanced Scorecard (GBSC) framework and examines the moderating effects of top management commitment and organizational social capital on GEP. Using data from 427 senior leaders and HR managers in small to medium-sized manufacturing enterprises in Southern Vietnam, analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM), the study confirms that GTL, GHRM, and sustainability innovation significantly contribute to OGP. The findings reveal a strong link between OGP and GEP, with top management and social capital enhancing these effects, providing valuable guidance for sustainable organizational growth.