How Ethical Leadership and Green Values Influence Green Performance Management and Creativity? Evidence from Firms in Saudi Arabia

Purpose – While using the combined lens of Social Learning Theory and Supply Value-Fit Theory, the study emphasizes the significance of reinforcement and value congruence in attaining environmental sustainability and acclaims that organizations foster ethical leadership, implement green performance management, and align employee green values with sustainability objectives. Design/methodology/approach – We collected data from 250 employees using convenience sampling working in two global Saudi firms operating in the oil and gas, energy and chemical sectors. We used partial least square structural equation modeling to test our hypothesis. Findings – Our findings show that green performance management practice partially and positively mediates the relationship between ethical leadership and employee green creativity. Furthermore, the relationship between ethical leadership and green performance management practices is moderated by individuals’ green values, such that the relationship is stronger when the green values are more pronounced, and vice versa. Originality – Our study explored a novel model that explained the role of ethical leadership, green performance management and individual green values in predicting employees’ green creativity. We explored this issue in an oil-rich economy which intends to reduce its carbon emissions and adopt green technologies. Our research highlights the importance of effective green performance management that can prove to be an effective control mechanism for organizations that are interested in sustainability. Furthermore, we suggest that organizations, in the presence of ethical leaders, encourage individual employees to adopt green values.