Effect of corporate social responsibility on sustainable environmental performance: mediating effects of green capability and green transformational leadership; moderating effects of top management environmental concern and perceived organizational support

Abstract

Corporate Social Responsibility (CSR) is increasingly acknowledged as an essential component of sustainable environmental performance (SEP), but the mechanisms behind this relationship are poorly understood, particularly in the case of SMEs in developing nations. Based on the Natural Resource-Based View (RBV) theory, this study investigates how green capability (GC) and green transformational leadership (GTL) mediate the CSR-SEP relationship, with a focus on the moderating function of perceived organizational support (POS). A survey of 420 SME employees in Bangladesh was undertaken, and the results were examined using SPSS and AMOS for structural equation modeling. The findings indicate that CSR greatly improves SEP. Furthermore, GC and GTL act as key mediators, increasing the CSR-SEP relationship. Furthermore, POS moderates the correlations between CSR and SEP, as well as GTL and SEP, implying that organizational support can strengthen or weaken these links. These findings demonstrate the diverse role of CSR in promoting environmental sustainability in many economic circumstances. The study provides practical implications for SMEs and policymakers, emphasizing the strategic significance of leadership and organizational support in improving CSR-driven sustainability efforts.

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