Green servant leadership and environmental performance: the mediating effect of green human capital management practices and green intellectual capital

Purpose – This paper aims to explore the connections between green servant leadership (GSL), green
human capital management (G-HCM) practices, green intellectual capital (GIC) and the environmental
performance (EVP) of firms. Specifically, the mediating effect of G-HCM practices between GSL and GIC
relationship, as well as the mediating effect of GIC on the G-HCM and EVP relationships were investigated.
Design/methodology/approach – Data were collected through a cross-sectional survey questionnaire
from 203 rural banks in Indonesian banking sector. The study used partial least squares structural
equation modeling to test the hypotheses.
Findings – The findings indicate that G-HCM practices act as a mediator between GSL and GIC.
Furthermore, the research highlights that G-HCM practices, via its impact on GIC, indirectly influences
EVP. The results confirm that all direct and indirect effects hypothesized in the study were supported.
Research limitations/implications – Findings are limited to rural banks; cross-industry samples are
encouraged in future studies.
Practical implications – GSL and G-HCM practices must be enhanced by managers to improve GIC
and EVP.
Social implications – The findings promote sustainable banking practices that contribute to
environmental protection and ecological responsibility.
Originality/value – The study makes a meaningful contribution to advancing current theories by
suggesting that the connection between G-HCM practices and environment performance is not
solely determined by the additive effects of GSL and GIC nor by their interactive effects, but a
combination of both.
Keywords Green servant leadership, Environmental performance,
Green human capital management practices, Green intellectual capital
Paper type Research paper