Fostering eco-innovative behaviour among Malaysian SMEs: The role of leaders’ green awareness and knowledge sharing practices
DOI:
https://doi.org/10.15611/aoe.2026.1.03Keywords:
eco-innovation, environmental sustainability, social learning theory, social exchange theoryAbstract
Aim: This study investigated the indirect effect of sustainable leadership (SL) on employees’ eco-friendly innovative behaviour (EIB) through green knowledge sharing (GKS). It also examined whether leaders’ green awareness (GA) amplifies the main effect of SL on GKS.
Methodology: Grounded in social learning theory and social exchange theory, data were collected from 283 employees working in Malaysian manufacturing SMEs through a cross-sectional survey. Partial least squares structural equation modelling (PLS-SEM) was employed to test the hypotheses.
Results: The results reveal that SL does not directly predict EIB. Instead, GKS serves as a significant mediator between SL and EIB. Furthermore, GA does not moderate the relationship between SL and GKS.
Implications and recommendations: These findings highlighted the critical role of knowledge-sharing practices in enabling eco-friendly innovation within SMEs. Managers should prioritise fostering green knowledge sharing rather than relying solely on leadership style. Future studies should explore cultural contingencies and alternative moderating variables that may strengthen the SL-EIB relationship.
Originality/value: This research contributes to green innovation theory by integrating two theoretical perspectives, testing a novel moderated-mediation framework, and examining the role of SL, GKS, and GA in a Malaysian SME context. It offers valuable insights into how leadership practices translate – or fail to do so – into employees’ eco-innovation.
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Copyright (c) 2026 Katarzyna Piwowar-Sulej, Qaisar Iqbal
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Accepted 2025-09-01
Published 2026-02-27
