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Biswas 2022 - Ecocentric Leadership and Voluntary Environmental Behavior For Promoting Sustainability

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Received: 28 August 2021 Revised: 4 December 2021 Accepted: 21 December 2021

DOI: 10.1002/bse.2978

RESEARCH ARTICLE

Ecocentric leadership and voluntary environmental behavior


for promoting sustainability strategy: The role of psychological
green climate

Shetu Ranjan Biswas1 | Md. Aftab Uddin2 | Swadip Bhattacharjee1 |


Mouri Dey3 | Tarek Rana4

1
Department of Management, University of
Chittagong, Chattogram, Bangladesh Abstract
2
Department of Human Resource Sustainability is not just a “buzzword” but refers to the ideal business strategy for
Management, University of Chittagong,
encouraging sustainable behavior for remaining relevant and competitive. Managers
Chattogram, Bangladesh
3
Department of Accounting, University of of organizations are increasingly expected to duly consider and demonstrate the
Chittagong, Chattogram, Bangladesh desired social and environmental intentions of translating leadership strategies into
4
Department of Accounting, School of
sustainable practices. Studies on employees' voluntary environmental behavior (VEB)
Accounting, Information Systems and Supply
Chain, RMIT University, Melbourne, Victoria, are increasing in number, in that it is believed that behavior can contribute to achiev-
Australia
ing organizational sustainability strategy. However, despite the studies being publi-
Correspondence shed on this emerging field, leadership is a missing link regarding the psychological
Tarek Rana, Department of Accounting, School
mechanism through which VEB can be defined and refined. Drawing on the theories
of Accounting, Information Systems and
Supply Chain, RMIT University, Melbourne, of social learning and social exchange, this study seeks to establish the impact of
VIC 3000, Australia.
ecocentric leadership (EL) on VEB and the mediating role of psychological green cli-
Email: tarek.rana@rmit.edu.au
mate (PGC) in this nexus. Data were collected from wide-ranging business organiza-
tions in Bangladesh through a self-administered survey questionnaire. The results
indicate that EL wields a significant direct influence on VEB. Moreover, EL through
the mediating effect of PGC indirectly shapes VEB. The study contributes original
insights to the discussions and debates on strategic leadership and climate account-
ability. Implications of ecocentric strategic leadership and recommendations for
future research are discussed.

KEYWORDS
ecocentric leadership, psychological green climate, social exchange theory, social learning
theory, sustainability strategy, voluntary environmental behavior

1 | I N T RO DU CT I O N over the world pledged to nations and organizations to adopt greener


business strategies to promote sustainable leadership and behaviors.
Sustainability strategy has garnered increasing attention of While many organizations have devised strategies suggesting their
researchers and practitioners in the management and accounting commitment to fighting climate change and carbon gas emissions in
fields (Cop et al., 2020; Landrum & Ohsowski, 2018). Organizations order to be “environmentally strategic,” we know little about whether
are increasingly expected to consider and demonstrate their social and how such motivations generated by senior managers (business
and environmental actions, to the extent that their business strategies leaders) actually solve problems like climate change (Çop et al., 2021;
and leadership are socially acceptable, moral, and sustainable (Begum Riva et al., 2021; Sabbir & Taufique, 2021). The rapidly growing inter-
et al., 2021; Kumar et al., 2021). At COP26,1 governments from all est in environmentally sustainable practices and importance of

Bus Strat Env. 2022;31:1705–1718. wileyonlinelibrary.com/journal/bse © 2022 ERP Environment and John Wiley & Sons Ltd. 1705
10990836, 2022, 4, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/bse.2978 by Readcube (Labtiva Inc.), Wiley Online Library on [28/03/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
1706 BISWAS ET AL.

business strategy to facilitate them has proliferated (Cosenz leadership, and responsible leadership, significantly predict environ-
et al., 2020) numerous types of management practices, and leadership mental behavior (Ahmad et al., 2021; Al-Swidi et al., 2021; Anser
styles can ensure organizational behavior leads to more sustainable et al., 2021; Zhang, Ul-Durar, et al., 2021). In spite of climbing interest
outcomes. on sustainable issues, it is surprising that a very little attention has
The environmental sustainability and climate change challenges been paid to the concept of ecocentric leadership (EL), who empowers
and risks are multifaceted, and these are not just economic, social, and employees to shed light on their environmental impulses
environmental in character (Davis et al., 2020). These challenges also (Shrivastava, 1994), that examined whether and how EL flair can facili-
fundamentally play out at the strategic and leadership levels at organi- tate employees' VEB at work place through a mediated mechanism
zations through the social interaction of senior management with (Uddin et al., 2021). Specifically, research is yet to discuss how EL can
employees in the form of influencing psychological behavior and atti- shape PGC toward VEB through a mediated mechanism. Henceforth,
tudes towards environmental sustainability (Glass et al., 2016). To contend that ecocentric leaders are more effective in envisioning a
address the challenge of managing environmental sustainability, we clear eco-vision, cultivate favorable green culture, castaway transac-
need to focus on the strategy of internal workings of organizations. tional philosophy, and transform followers to willingly implement sus-
This can be done by analyzing managerial practices and the subse- tainable initiatives.
quent proliferation of pro-environmental attitudes and behaviors It is widely accepted that today's global ecological and climate
among all employees (Foo et al., 2021). A burning issue, for both busi- crises are embedded in corporate practices, government policy, and
nesses and societies, is environmental degradation in the form of individual actions, which must be addressed with particular care and
deforestation, desertification, deprivation of ecosystems, loss of biodi- focus within a neo-environmental outlook (Das et al., 2019). This
versity, pollution, and climate change. These are all threats to biodi- transition to sustainable management practices can be made possible
versity and climate change (Han et al., 2019; Safari et al., 2020; by significant application of EL ideals (Uddin et al., 2021). Ecocentric
Tang & Lam, 2017). Although businesses play a prominent role in leaders create an organizational environment that helps to foster
safeguarding the environment through energy conservation, emissions PGC, which in turn drives employees to participate in VEB (Al-Amin
reduction, and process reengineering (Li et al., 2020; Safari et al., 2021) which can be understood using social cognitive theory
et al., 2020), environmental degradation increases climate vulnerability and social exchange theory (Lin & Hsu, 2015; Thibaut &
at the organizational level by raising costs and spreading scarce Kelley, 2017).
resources too thinly (Paro et al., 2021; Zhang, Jin, et al., 2021). In this Social cognitive theory began as a social learning theory which
context, companies have become more mindful of environmental posits that learning occurs in a socio-institutional context with inter-
issues and engaged in more environmentally friendly business prac- actions of individuals, organizations, and environments
tices (Agudelo & mez,
Cortes-Go 2021; Akkalatham & (Bandura, 1986; Lin & Hsu, 2015). Our study benefits from a more
Taghipour, 2021) at all levels of organizations. nuanced consideration of social learning theory, which has prog-
The success of such pro-environmental initiatives introduced at ressed in many directions since the original work by Bandura (1977,
the work level is largely contingent on employees' perceptions of 1986). Social learning theory explains why people do as they do, and
environmental issues, that is, their psychological green climate (PGC) it postulates that individuals can learn new knowledge and behaviors
and subsequent behaviors, such as voluntary environmental behaviors by direct experience or by observing others (Bandura, 1977, 1986).
(VEBs), which are vital precursors of environmental sustainability The learning process, as this theory assumes, has four means: atten-
strategy at the organizational level (Li et al., 2020; Robertson & tion (a person needs to observe something in the organizational envi-
Carleton, 2016). PGC refers to the understanding of green perception, ronment); retention (a person remembers that observation);
values, and policy guidelines to attain distant sustainable goals by indi- reproduction (a person imitates what was observed); and motivation
vidual, and VEB excerpts the pro-environmental behavior to save the (environment needs to reinforce that observed behavior). This learn-
earth in the long run (Biswas et al., 2021). Conforming to Norton ing process is governed by an observation that there is a reward or
et al. (2015), environmental behavior patterns can be delineated from punishment of any given behavior which works as motivational and
two perspectives: prescribed or in-role environmental behavior which self-regulatory factors of reinforcement that contribute to expected
arises as a part of their job responsibilities such as conserving natural actions. However, a consequence is not necessary for learning to
resources; while voluntary or extra-role behavior can be interpreted occur. Instead, observing exemplary behavior by EL acts as informa-
as proactive and arduous but unrewarding actions that pointedly ben- tive function of reinforcement which sends a signal to employees for
efit the organizational sustainability such as initiating innovative ways imitating EL's behavior. Based on this, employees avidly pay attention
to improve work procedures (Kim et al., 2020; Norton et al., 2014). In to sustainability strategy in order to save or preserve the environ-
recent years, scholars have concentrated on establishing the predic- ment, or at least aspects of it (Su et al., 2020). In line with the pre-
tors of VEB, and leadership has been described as an important ante- mise of social learning theory, empirical evidence has revealed that
cedent of such behavior (Afsar et al., 2020; Robertson & leaders play an important role in shaping the workplace environment
Carleton, 2018; Uddin et al., 2020). and influencing employees' VEB (al Halbusi et al., 2020; Kuenzi
In this context, researchers have found that different leadership et al., 2020; Lülfs & Hahn, 2013; Walumbwa & Lawler, 2003). This
styles, namely, ethical leadership, green leadership, spiritual study envisions that social learning may occur in the organization as
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BISWAS ET AL. 1707

the outcome of leadership strategy whereby leaders model certain 2 | T H E O R E T I C A L F O U N DA T I O N S


pro-environmental behaviors and creating conditions for learning and
reciprocity. The research problem, research questions, and hypotheses were con-
Social exchange theory is a sociological and psychological theory structed based on multitheoretical viewpoints. The study integrates
that explains social interaction of two parties contingent upon eco- the essence of social learning and social exchange as underpinning
nomic exchange (Blau, 1964; Homans, 1958; Thibaut & theories in order to logically connect the concepts of EL, VEB, and
Kelley, 2017). According to one tenet of social exchange theory, PGC, as well as explore the indirect effect (mediation) of PGC on the
individuals feel more obligated to the reciprocity of positive action influence of EL on VEB.
when they view the activities of their leaders and organization as The key tenet of social learning theory asserts that an individual
caring and concerned about their well-being (al Halbusi et al., 2020). learns appropriate behavior through observing and interacting with
In line with the theory, it can be argued that leaders establish rela- the actions and reactions of a role model (Bandura, 1977). Runhaar
tionships with their subordinates and support them to be environ- et al. (2008) argued that leaders must have a sense of responsibility
mentally aware and work sustainably, in a variety of ways. For for the environmental which Bansal and Roth (2000) termed as
example, they can promote employees' perceptions of “green” issues “social” incentives. Ecocentric leaders are usually acknowledged as
and support for environmental initiatives and foster open communi- legitimate figures because they exude environmental behaviors
cation on ecological issues, which all help to develop employees' (Uddin et al., 2021). Being promoters of conservation, such leaders
preferential treatment emanating from PGC to reciprocate beneficial imply the existence of higher order environmental values, thoughts,
behavioral reactions, such as VEB (Biswas et al., 2021). Conse- attitudes, and actions in the workplace. The consideration of
quently, when leaders directly support their employees in achieving ecocentric leaders as role models forms VEB among employees by
environmental sustainability or related strategy, a social exchange means of motivational and informational strategies (Bandura, 1977).
occurs between them, which is crucial for improving employees' Subsequently, subordinates seek to emulate and attain the eco-driven
VEB, as well as developing PGC (Paillé & Boiral, 2013). Drawing behaviors of the credible role model (al Halbusi et al., 2020).
from the lens of social exchange theory, studies have inferred that Moreover, academicians argue that employees' behavioral actions
ecocentric leaders have the dexterity to articulate and transmit a can be articulated through the tenets of social exchange theory.
simple yet compelling vision that prioritizes the environment and According to this theory, employees will reciprocally display additional
encourages personal commitment to implementing eco-initiatives. environmental behavior when they perceive that their leaders and/or
Two examples here are ISO 14001 and strengthening the PGC of organization place high importance on nurturing a congenial PGC,
employees regarding VEB (Boiral et al., 2009; Kura, 2016; which in essence means caring for the environment (Blau, 1964).
Tuan, 2020). This study aims to ascertain the association between Ecocentric leaders have the dexterity to transform organizational cul-
EL, PGC, and employees' VEB at the workplace by linking the fol- ture, and can shape employees' shared perceptions regarding internal
lowing research questions: How does EL influence VEB in the work- workplace policies, guidelines, strategies, and practices concerning
place?; and does PGC mediate the relationship between EL and ecological sustainability (Saleem et al., 2020; Uddin et al., 2021).
employees' VEB? Therefore, drawing on the social exchange theory, the study postu-
The paper emphasizes the following contributions to the knowl- lates that the perceived belief in EL that protects and nurtures the
edge on this subject. Although previous research has investigated the natural environment sharpens the PGC of employees, which in turn
impact of corporate environmental strategy (Biswas et al., 2021), improves their participation in VEB. Figure 1 presents the underlying
leadership styles (Afsar et al., 2020; Saleem et al., 2020; Ying research model.
et al., 2020) and job satisfaction (Kim et al., 2019) on employees'
VEB, very few studies have attempted to establish the mechanism
through which environment-oriented leadership predicts VEB (Li 3 | LI T E RA T U R E RE V I E W A N D
et al., 2020; Robertson & Carleton, 2018). Responding to the call of HYPOTHESIS DEVELOPMENT
Li et al. (2020) to contribute to the lack of studies on the influence
of environmental-specific leadership on VEB, this paper seeks to fill 3.1 | Ecocentric leadership
this gap by assessing the influence of EL on VEB. Moreover, previous
investigations have examined the links between environmental lead- The ecocentric nature of leaders is characterized by the valuing of
ership and VEB using autonomous motivation (Li et al., 2020), pro- nature for its own sake, as well as the belief that humans do not exist
environmental goal clarity (Peng et al., 2021), green crafting apart from nature and are thus inextricably linked to its survival
(Tuan, 2021) and environmental belief (Kim et al., 2019) in mediated (Komarov, 2020; Sartore-Baldwin & McCullough, 2018). The corpo-
mechanisms. However, this study incorporates a psychological rate transition to ecological sustainability necessitates this new form
construct—the PGC of employees—as a mediator between EL and of EL, as ecocentric management places ecocentrism at the center of
VEB, which not only provides new evidence for the mediated mecha- corporate decision making, rather than at the periphery (Sartore-
nism using PGC as a mediator but also significantly advances the Baldwin & McCullough, 2018). Various moderating supports for EL
related knowledge. have become the prerequisites for corporate greening, as they involve
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1708 BISWAS ET AL.

FIGURE 1 Research model

themselves and others in shaping corporate environmental strategies internal and external factors, including environmental consciousness,
and policies, and implement various green practices by influencing CSR perceptions, environmental regulations, pro-environmental atti-
employees' values and attitudes (Curry, 2020; Nicolaides, 2017; Zhou tudes, social norms, and religion influence the VEB of individuals
et al., 2018). EL is required to be embedded in the business strategy (Huber et al., 2018; Maki et al., 2019; Nebel et al., 2017; Zemo &
to safeguard our planet and its environment. In comparison to task- Nigus, 2021). Furthermore, people who participate in VEB at home are
oriented leaders (i.e., transactional leadership), ecocentric leaders, as likely to do the same at the workplace. Leadership behavior, perceived
environmental leadership style, have a distinct strategic vision relating environmental support, and work place spirituality have also been iden-
to organization's natural environment and long-run ecological perfor- tified as antecedents of the intention to display VEB (Das et al., 2019).
mance and sustainable growth for the organization or society
(Shrivastava, 1994). Furthermore, in between environmental specific
transformational leadership (Li et al., 2020) and EL, EL more sensibly 3.4 | Ecocentric leadership and voluntary
addresses environmental issues through inspiring subordinates to environmental behavior
engage in VEB for shaping a sustainable future (Graves et al., 2019;
Graves & Sarkis, 2018; Robertson, 2018). VEB features protection and altruism, so in effect, it is not self-
interest that is maximized, but instead the interests of the environ-
ment (Das et al., 2019). This behavioral exposition is supported by
3.2 | Psychological green climate leadership style. Not much is understood about the mechanism of
leadership style in nurturing the VEB of employees; EL affects and, in
PGC is an efficacious drive that involves employees' collective percep- some cases, moderates employees' VEB directly and indirectly with a
tion of the organization to improve green standards and achieve long- very environmental locus of control (Uddin et al., 2021). Ecocentric
term goals and objectives by implementing a variety of environmen- leaders have as a part of their psychological profile the qualities and
tally friendly policies and procedures (Das et al., 2019; Naz potentials that instill hope, faith, and the sense of cohesion and
et al., 2021). In the field of organizational and environmental psychol- responsibility in subordinates, which make them passionate to achieve
ogy, the psychological climate is regarded as a prevalent semantic indi- desired social and spiritual needs for future generations, the commu-
cator for the influence of individual attitude and behavior (Dumont nity, and nature (Afsar et al., 2018). Leaders that operate as ecocentric
et al., 2017; Khan et al., 2019; Norton et al., 2014). Leadership that exemplars inspire their followers to live more sustainably by promot-
rates biospheric values highly exerts a significant influence on PGC ing self-directed moral ideals, raising awareness, influencing others,
(Kawiana et al., 2021). Senior management support improves environ- and forging relationships and incentives. In Smith's (Smith, 2020)
mental performance through building a PGC (Saleem et al., 2020) in words, executives with an ecocentric mentality model behaviors sup-
which environmental knowledge and awareness are also reflected. port long-term initiatives, such as reduced resource use, energy sav-
ings, waste avoidance, recycling, and water conservation are all
supported by leaders with an ecocentric perspective (Araujo
3.3 | Voluntary environmental behavior et al., 2021; Biswas et al., 2021; Bolderdijk et al., 2018; Das
et al., 2019; Wesselink et al., 2017). The environmental norms of EL,
Researchers have begun to acknowledge that eco-friendly behaviors as well as the leadership and pro-environmental behaviors they
and practices are highly beneficial to both organizations and the envi- exhibit, play a critical role in stimulating the VEB of employees (Uddin
ronment (Biswas et al., 2021; Frese et al., 1997; Uddin et al., 2020). et al., 2021). This leadership flair improves employees' VEB in the
The broad construct of VEB refers to the self-committed act designed presence of socially responsible managerial ambience (Al-Amin
to participate in environmental preservation programs (Huber et al., 2021). Therefore, the following hypothesis is posited:
et al., 2018; Nebel et al., 2017). VEB is the most practiced behavioral
exposition linked to environmental performance at the firm level. Both Hypothesis 1. EL is positively related to VEB.
10990836, 2022, 4, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/bse.2978 by Readcube (Labtiva Inc.), Wiley Online Library on [28/03/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
BISWAS ET AL. 1709

3.5 | Ecocentric leadership and psychological Das et al., 2019). An organization implementing green managerial
green climate practices wants to add value far beyond economic requirements, by
taking environmental benefits into account and also informing
The planet Earth requires ecocentric people who consider that all employees that the organization cares about environmental issues in
things are organisms which are inextricably interconnected in some its production and manufacturing processes (Tang et al., 2018). It is
way (Uddin et al., 2021). It helps explain why the influence of EL on evident that people who feel more positive about the environment,
an organization's sustainable development has become an emerging and who have a more mature awareness of the need to protect it, are
topic (Uddin et al., 2020). Although findings have revealed that EL more likely to display positive VEB that goes beyond their regular job
wields a significant positive impact on organizations' environmental duties (Biswas et al., 2021). To this end, the main purpose of the orga-
performance, the antecedents relevant to such performance need fur- nization's activities is to raise employees' awareness of “green” issues
ther investigation (Uddin et al., 2021). EL can help implement green (Hameed et al., 2020). Conversely, firms that do not do this are per-
management policies and motivate companies to devise “green devel- ceived to be less socially responsible, and this undermines the VEB of
opment” goals in a kind of holistic leadership (Anser et al., 2020; Zhou employees (Xu et al., 2020).
et al., 2018). This type of leadership flair builds a relationship with the The perceived organizational green climate provides incentive for
environment through engaging the people with a shared perception employees through social contacts and debates that influence their
that lets them express their gratitude and experience nature. Follow- common perception and create a personal space in which they can
ing the conceptualization of social learning theory, it can be argued display voluntary behavior toward the environment (Biswas
that the deep-seated passion and sanction of EL make an impression et al., 2021; Khan et al., 2019). Additionally, a PGC emphasizes edu-
on the environmental behavior of subordinates and increases percep- cating employees with work practices that maximize resource utiliza-
tions within the organization and its leadership that green initiatives tion, minimize waste, conserve energy, and prevent environmental
will generate momentum (Uddin et al., 2020). EL is also considered as deterioration, as well as abilities that strengthen VEB (Tsai
a social support system because leaders exhibit the types of high- et al., 2017). So, organizations inclined towards improving their envi-
quality interactions required for resilience at both the team and indi- ronmental performance need to make the participants clear about
vidual levels (Cop et al., 2020). their environmental disposition and strategy (Naz et al., 2021). In a
Ecocentric philosophy produced a conceptual framework for similar fashion, Khan et al. (2019) and Tsai et al. (2017) found a direct
ecocentric management in a North American study, which includes influence of PGC on environmental behavior. Therefore, the third
ecological sensing, values, envisioning, and implementation in organi- hypothesis proposed is:
zations (Hernández & Muñoz, 2021). Non-Western countries can
use an EL view to help develop human-nature linkages and promote Hypothesis 3. PGC positively influences VEB.
green standards by talking to people face-to-face, displaying envi-
ronmental practices, and setting up training programs (Curran, 2021; As previously mentioned, it is argued in several studies that the
Flagstad et al., 2021; Mukherjee et al., 2020). The present study prevalence of PGC directly facilitates employees' VEB (Afsar
also observed research in cross-country empirical perspective on the et al., 2016). Correspondingly, PGC contributes to the framing of com-
possibility of an ecocentric worldview to promote common values, mon perceptions, values, beliefs, and customs in the organization,
self-transcending purpose, and personal insight (Gardner & which prepare employees to focus on VEB (Al-Amin et al., 2021; Lu
Paulin, 2018; Manolopoulos, 2021; Sheridan et al., 2019; et al., 2019; Paillé et al., 2019). The influence of EL on VEB via the
Zegers, 2020). We can hypothesize that EL will positively promote a presence of PGC can be justified by understanding of social exchange
green psychological climate for the following reasons: (a) EL theory, which highlights the reciprocal responses in a positive or nega-
advances the benefits of positive thinking about the environment tive manner to participants' actions. Supportive EL behaviors beyond
through psychological shifting (Tuan, 2020); (b) the incorporation of job descriptions encourage employees to behave and act beyond their
environmental connections in decision-making (Li et al., 2020; Peng required and official role. Moreover, organizational policies and prac-
et al., 2021); and (c) the engagement of employees in environment- tices are highly influential in shaping the PGC of the workplace, which
related matters (Singh et al., 2020; Tuan, 2021). Based on the is in turn strongly linked to the individual behavior of employees.
above, our second hypothesis is: Additionally, a psychologically supportive green climate amplifies the
effect of environmentally supportive supervision on employees' VEB
Hypothesis 2. EL has a positive influence on PGC. (Robertson & Carleton, 2018) The development of corporate environ-
mental strategy through the direct influence of EL enhances
employees' PGC and their individual ecological behavior (Basu
3.6 | Psychological green climate and voluntary et al., 2019; Pellegrini et al., 2018). Consequently, the fourth hypothe-
environmental behavior sis suggested here is:

PGC denotes employees' collective perception of the organization's Hypothesis 4. PGC mediates the influence of
ability to fulfill its environmental responsibilities (Biswas et al., 2021; ecocentric leaderhsip on VEB.
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1710 BISWAS ET AL.

4 | RESEARCH METHOD latent variables with the 13 parameters, the present study attests that
any sample size more than 200 responses are adequte. Thus, the pre-
4.1 | Research setting and participants' sent study has no issue with sample size.
information Table 1 summarizes the demographic characteristics of the study
sample (n = 261) in terms of gender, age, job experience, educational
The study adopted a deductive reasoning approach with a positivist qualification, and organizational employee size. From the sample data,
paradigm and used the quantitative technique to examine the it emerged that male respondents (229, 88%) outnumberd female
observed relationships. Considering the importance of the issue, the respondents (42, 12%). In terms of age cohorts, the majority of
data were collected from a wide variety of industries, such as steel, responders were below 40 years of age (82%). Furthermore, the ten-
garments, shipping, tobacco, fertilizer, etc., which are the major pollut- ure experience revealed that most respondents (127) started their
ants at Chattogram division in Bangladesh. The reason behind using corporate careers at a young age, had worked for less than 10 years
the diverse pollutant organizations is to engender the estimates that (49%), followed by the mid-age group (110, 42%). In terms of educa-
represents the general scenario of the context. A self-administered tion, the majority of respondents, 144 (55%), have Master's degrees,
survey questionnaire was employed and convenience sampling tech- while 77 (30%) have Bachelor's degrees and 40 (15%) have other qual-
niques served to collected data. We employed convenience sampling ifications. Notably, a large proportion of the organizations, 101 (39%),
technique because it generates adequate responses in a short period had fewer than 500 employees, followed by large ones with more
of time (Al-Swidi et al., 2021). than 1,000 staff, 97 (37%).
To limit response and method bias, several precautions were
taken, such as (i) assuring the privacy and confidentiality of the
respondents' data; (ii) allowing the respondents to withdraw at any 4.2 | Measurement tools
time during the data collection process; and (iii) running Herman's one
factor test to examine if any single factor explained more than 50% of For the variables, this study employed measurement tools that were
the total variance. The study received 269 responses from 401 self- adapted from previous studies (Appendix A). Items representing the
admnistered questionnaire with a response rate of 67% response variables were translated in the native language (Bangla), with minor
which was adequate compared to similar studies (Uddin et al., 2021; modifications following the procedure of Brislin et al. (2006). The
Yi et al., 2019). After eliminating extreme cases effected with missing study adapted the scale of Chen and Chang (2013), which was
data, outlier, normality, 261 replies from the questionnaire were recently refined by Uddin et al. (2021), to measure EL. A sample item
finally retained and analyzed. Studies showed that any sample size was “our leader provides a clear environmental vision for the mem-
more than 200 for covariates based structural equation modeling bers to follow.” One item was dropped because of its poor regression
(SEM) (Loehlin, 2004; Sultan et al., 2021) or the “10 times rule weight. PGC was adapted from the scale of Norton et al. (2014). A
(Pituch & Stevens, 2016)”—the maximum arrow arrowheads pointed sample item was “my company believes that it is important to protect
toward any latent variable or five cases per parameter estimate the environment.” Finally, VEB was measured with items developed
(Bentler & Chou, 1987) are adequate for any study. Considering the by Frese et al. (1997), a sample item was “I do more for the

TABLE 1 Demographic profile of respondents (n = 261)

Characteristics Classifications Frequencies Percentage


Gender Male 229 88
Female 32 12
Age (mean age = 35.25 years) Above 22 77 29
Above 30 138 53
Above 40 46 18
Employment (mean experience = 9.79 years) Less than 10 years 127 49
Less than 20 years 110 42
20 years and above 24 9
Education Bachelor degrees 77 30
Master degrees 144 55
Others 40 15
Organizational size (mean employees = 1,291.9) Less than 500 101 39
Less than 1,000 63 24
More than 1,000 97 37
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BISWAS ET AL. 1711

environment at work than I am expected to.” All items were measured 5 | FI ND I NG S


using 5-point Likert scale where 1 stands for strongly agree and
5 stands for strongly disagree. 5.1 | Analytical tools

The study employed IBM SPSS, PROCESS macros, and SmartPLS3 to


4.3 | Common method bias examine the data. SmartPLS3 was used to fit the SEM, which is con-
sidered to be a better regression analytical tool because: First, it ana-
Common method bias and response bias are common concerns in lyzes the measurement and structural models holistically and, second,
cross-sectional research which limit the generalizability and robust- provides more robust results than traditional regression techniques
ness of the findings (Mahmood et al., 2019; Podsakoff et al., 2012; (Hair et al., 2014, 2017). Moreover, it is recommended to use partial
Spector & Brannick, 2010). Consequently, several precautions as least squares (PLS)-based SEM over covariate-based SEM when the
suggested in other studies were taken to neutralize the effects. As purpose is prediction rather than theory development (Bari
well as ensuring the anonymity and privacy of the responses, mea- et al., 2020). Hence, the use of PLS-based SEM via SmartPLS3 was
sures were taken regarding the content validity of the items so that justified (Hair et al., 2017).
statements representing latent variables would be easy to understand
and answer. The test estimates of Harman (1967) one factor showed
that no single factor explained more than 50% of the variance. We 5.2 | Measurement issues with psychometric
examined the correlation matrix using the Bagozzi method and esti- properties
mates confirmed that correlation between any two latent variables
did not exceed the threshold limit (.90) (Bagozzi et al., 1991; Pavlou The psychometric properties of the three tools were examined
et al., 2007). We estimated the alternative models, compared the through convergent and discriminant validities, as shown in Table 2.
three-factor model with single factor one, and found that the three- Previous studies have used composite reliability (CR), Cronbach's
factor version (χ /df = 1.703; comparative fit index [CFI] = 0.983;
2
alpha (CA), and average variance extracted (AVE) to examine conver-
Tucker–Lewis index [TLI] = 0.978; root mean square error of approxi- gent validities. We found that convergent validity was realized
mation [RMSEA] = 0.052) generated fitter estimates than the single because none of those were beneath the threshold limit (CR or
factor model (χ 2/df = 16.214; CFI = 0.609; TLI = 0.513; CA = 0.80 and AVE = 0.50) (Hair et al., 2014, 2017). Testing of dis-
RMSEA = 0.242) (Muhammed & Zaim, 2020). Finally, multicollinearity criminant validity reveals that the square root of the AVE of any latent
issues were investigated, with the results showing that the variance variable is higher than its correlation with other latent variables.
inflation factor of any latent variable did not exceed 2.00 Consequently, there was no issue with convergent or discriminant
(Kock, 2015). Based on this, bias was not an issue in the study. validity (Hair et al., 2014, 2017).

TABLE 2 Estimates in the correlation


Variable 1 2 3 4 5 6 7 8
matrix
1. Sex 1
2. Education .087 1
3. Age .136* .268** 1
4. Tenure .195** .208** .866** 1
5. Size .068 .001 .090 .054 1
6. EL .082 .087 .067 .040 .029 0.808
7. PGC .035 .050 .072 .059 .011 .428** 0.852
8. VEB .005 .079 .089 .064 .104 .405** .469** 0.910
Mean — — 35.253 9.789 1291.916 1.761 1.819 1.748
SD — — 7.154 6.736 2966.982 0.592 0.566 0.618
AVE — — — — — 0.653 0.726 0.829
CR — — — — — 0.915 0.914 0.936
CA — — — — — .883 .874 .897
R2 — — — — — .000 .188 .273

Abbreviations: AVE, average variance extracted; CA, Cronbach's alpha; CR, composite reliability; EL, ecocentric
leadership; PGC, psychological green climate; SD, standard deviation; VEB, voluntary environmental behavior.
*Significant at 0.05.
**Significant at 0.00.
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1712 BISWAS ET AL.

5.3 | Hypothesis testing in the structural modeling employees. This finding agrees with the findings of Robertson and
Carleton (2018), thus demonstrating that as an exemplary characteris-
Figure 2 (structural model) highlights the estimates of our hypothe- tic of ecocentrism, an EL style positively influences followers to
sized relationships. In Hypothesis 1, we proposed there is a positive engage in voluntary environmental initiatives. The manifestation of
influence of EL on VEB. The estimates in Figure 2 show that the influ- leaders' passion and support through their actions to save the planet
ence is significant (β = .254, p < .012). It means that Hypothesis 1 is deepens employees' values and commitment towards the environ-
supported. In Hypothesis 2, we predicted that EL influences PGC. The ment, which results in heightened VEB (Uddin et al., 2021). This expla-
estimates in Figure 2 show that the influence is significant and posi- nation is in line with social learning theory, in that followers tend to
tive (β = .439, p < .000), so Hypothesis 2 is also supported. Finally, we emulate the environmental actions and behaviors of an appropriate
hypothesized in Hypothesis 3 that PGC impacts on VEB. Likewise, we leader, such that EL resembles a role model, with the attribution of
found that the influence was significant (β = .418, p < .001) and so pro-environmental traits.
Hypothesis 3 is also supported. In line with earlier research on environmental management
In Hypothesis 4, we hypothesized that PGC mediates the influ- (Tuan, 2021; Zhou et al., 2018), we established that EL is an essential
ence of EL on VEB. We used PROCESS macros to examine the media- precursor of PGC (β = .439, p < .000), thus supporting Hypothesis
tion effect. Notably, we run direct effect (EL à VEB) before using 2. When an organization/leader endorses and sanctions environmen-
mediating variable (PGC), and estimates showed that the effect was tally friendly activities and approves rules and intervention to achieve
significant (β = .409, p < .000). The results in Table 3, in a mediated prescribed earth-saving policies, the employees' collective evaluation
model, show that the indirect effect is significant (EL à PGC à VEB: of the organization's environmental outlook becomes crystal clear.
β = .162, p < .012) and that the 95% bias-corrected indirect effect This occurs because as proponents of organizational strategies,
does not contain zero (0). The estimates show that the indirect (medi- ecocentric leaders have a persuasive vision of sustainable develop-
ation) effect exists. Since the direct effect (β) falls to .254 (p < .012) ment. As is asserted in social learning theory, subordinates learn or
from .409 (p < .000) after using the mediating variable, it can be con- develop environmental priorities because they observe and learn from
cluded that there is a partial mediation effect. Hence, Hypothesis 4 is the actions of their superiors (Bandura, 1977).
partially supported. The results of the data analysis reveal that PGC also positively
influences VEB (β = .418, p <0.001), so Hypothesis 3 is supported
(Das et al., 2019; Dumont et al., 2017). This signifies that organiza-
6 | DISCUSSION tional member in possession of positive PGC for ecological conserva-
tion willingly engage in VEB. The rationale behind the significant
Using the lens of multitheoretical perspectives, such as social learning influence of PGC on VEB can also be justified by the precept of social
and social exchange theory, the study examined both direct and indi- exchange theory, which confirms reciprocal exchange between two
rect effects in a mediated mechanism to explain VEB, with the help of entities. More specifically, when employees nurture a positive attitude
EL and PGC. We conceptually developed and empirically tested a about the prevailing positive PGC in organizations, they will be
hypothetical research framework in which EL was tested to examine relieved of any tension about being pro-environmental and avoid
its impact on VEB. It was also investigated whether the inclusion of social alienation from their closed groups because their VEB might be
PGC as a mediating variable explained VEB more than without its beyond their task role or list of duties.
inclusion. Finally, as expected, the findings of the testing of Hypothesis
First, in line with our estimation, the results confirm that EL exerts 4 are also consistent with our original notion that PGC partially medi-
a significant direct influence (β = .254, p < .012) on the VEB of ates the influence of EL on VEB (Tuan, 2021). This outcome can be

FIGURE 2 Structural model with path


estimates

TABLE 3 Estimates on the mediation


Hypothesis Path β STERR T statistics UCL LCL
effect
Hypothesis 4 EL à PGC à VEB .162 0.040 2.5302 0.096 0.256
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BISWAS ET AL. 1713

explained by the argument that the presence of PGC strengthens the support elevate the levels of employees' VEB where missing the link
previous influence of EL on VEB and that EL also predicts VEB of environmental leaders especially ecocentric leaders. By adopting
through the mediation mechanism of PGC. The multitheoretical lenses social exchange perspective on EL, our research findings identify that
of social learning and social exchange theory accurately underpin the individuals are more likely to engage in positive environmental behav-
mediation mechanism influencing VEB. The active pro-environmental ior when they believe that the leader (i.e., EL) and the organization
idolized role of EL redefines and improves the canvas of PGC among care them. Therefore, sustaining a link with social exchange theory,
employees, which consequently excites them to be more passionate the findings synthesize a balanced framework of social exchange the-
about conserving the environment and taking part in VEB (Uddin ory, EL, and VEB literature.
et al., 2020).

7.2 | Practice/managerial implications


7 | C O N CL U S I O N
Over and above the theoretical contributions, our findings offer fresh
Drawing upon social learning and social exchange theories, the study insights into organizational leaders in developing countries who
establishes a pathway for fostering VEB among employees by investi- develop sustainability strategy to inspire and foster voluntary eco-
gating the direct impact of EL and the mediating effect of PGC. The actions among employees. The importance of EL in strengthening
hypothesized and supported hypotheses emphasize that EL has a sig- VEB is crucial in the present landscape. First, organizational leaders at
nificant direct effect on employees' VEB. In addition, PGC acts as a any level should act as role models for eco-activities to ensure a
mediator between EL and PGC, which consequently fosters employee cleaner, less polluted world for present and future generations. In a
VEB, such as avoiding needless printing, ensuring that reusable items developing country such as Bangladesh, where a hierarchical culture
are recycled, using stairs instead of elevators, etc. prevails, employees are extremely leader-centric and reluctant to
engage in non-task-related roles. However, the adequate and timely
demonstration of EL would encourage them to be proactive in per-
7.1 | Theoretical contributions forming VEB without the fear of social exclusion if their VEB goes
otherwise. Second, senior management should make great efforts to
The study contributes in theoretical terms to the literature on pro- craft an eco-friendly strategy or green business strategy and work-
environmental strategic behavior in numerous ways. Our findings rep- place where employees will feel encouraged to undertake eco-friendly
licate and support previous research on VEB. Although these studies or green-business initiatives. Third, instilling a sense of stewardship
cover the influence of servant leadership (Ying et al., 2020), ethical and reshaping employees' behavior in a way that is fundamentally
leadership (Saleem et al., 2020), and responsible leadership (Zhao & beneficial to environmental conservation is made possible by the com-
Zhou, 2019) on VEB, they have nonetheless overlooked the impact of mon perception and understanding that exists within a PGC. Given
leadership, notably EL, from the environmental strategy perspective. that employees notice that organizations are not only framing eco-
The findings of this study demonstrate how EL, through the mediated friendly strategies and making green-business interventions but also
mechanism of PGC, encourages employees to make extra efforts to soliciting and rewarding those staff who align their behavior according
conserve the environment. Notably, previous incongruous findings to eco-friendly business strategies but strive to maintain this legacy
about the mediation and moderation effects of PGC (Dumont and take eco-friendly stance will improve morale in the workplace and
et al., 2017; Tuan, 2021) motivated the researchers to establish its promote VEB.
mediation role. Our findings report a partial mediation effect of PGC
on the association between EL and VEB. Finally, it overcomes the
generalizability issues of the research outcomes as our study does not 7.3 | Limitations and future research direction
focus on a single industrial sector but includes a wide range of indus-
tries like manufacturing (Cai et al., 2020), power generation (Ying In addition to proposing noteworthy contributions to theory and prac-
et al., 2020), casinos, and hotels (Tian & Robertson, 2019). tice, future research endeavors should address the following issues.
In addition, coherent with social learning theory, the findings pro- First, studies could expand our findings to other emerging economies,
vide a clear evidence that leaders who are committed to protecting as this research investigation was conducted only in Bangladesh, a
the environment are better able to develop environmentally friendly developing country with an increasingly free market economy. Sec-
policies and procedures to achieve organization's environmental goals ond, despite the fact that the study took various measures to avoid
and acted as role model to inspire their employees to do the same. concerns with the cross-sectional data, indicating that there was no
Therefore, EL is said to be the interpretive filters, impacting an organi- issue of bias, future research could employ longitudinal data to
zation's green environment setting and employees' voluntary eco- observe if there is any significant difference between the two
friendly behavior. On the other hand, drawing upon social exchange methods. Third, behavioral observation or archival report could pref-
theory, previous studies revealed that organizational (Paillé & Mejía- erably be taken as an alternative mean to understand multifaceted
Morelos, 2014) and leaders (Gkorezis, 2015; Lülfs & Hahn, 2013) nature of the variables that may overcome the problems of single
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1714 BISWAS ET AL.

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1718 BISWAS ET AL.

APPENDIX I A. impact
My company is interested in supporting environmental
Ecocentric leadership degradation causes
Our leader inspires the employees with the environ- My company believes that it is important to protect
mental plans the environment
Our leader provides a clear environmental vision for My company is concerned with becoming more envi-
the employees to follow ronmentally friendly
Our leader gets the employees to work together for
the same environmental goals
Our leader encourages the employees to achieve envi- Voluntary Environmental Behavior
ronmental targets I take chance to get actively involved in environmental
Our leader acts with considering employees' environ- protection at work
mental belief I take initiative to act in environmentally-friendly ways
Our leader stimulates the employees to think about at work
green ideas I do more for the environment at work than I was
expected to

Psychological Green Climate


My company is worried about its environmental

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