Ethical leadership, green innovation and environmental performance in the restaurant industry

Purpose This study aims to examine how employees’ perception of the ethical conduct of their leaders affects their level of green innovation and environmental performance. Therefore, this study investigated green innovation as a mediator between ethical leadership and environmental performance, specifically within the context of Pakistani restaurants. Design/methodology/approach Data was collected from the frontline employees using a convenience sampling method having a sample size of 213 respondents. The hypothesized model was analyzed through structural equation modeling using SmartPLS v3 software. Findings This study shows a (i) positive relationship between ethical leadership and environmental performance, (ii) positive association between ethical leadership and green innovation, (iii) positive relationship between green innovation and environmental performance and (iv) green innovation mediates between ethical leadership and environmental performance. Research limitations/implications This research suggests that top management of the restaurants needs to focus on exhibiting ethical leadership behavior, thereby fostering green innovation practices that will improve the environmental performance of Pakistani restaurants. Originality/value The current study is novel as it investigates the association between ethical leadership, green innovation and environmental performance, specifically within the context of Pakistani restaurants.