Intervening Role of Sustainability Practices in the Nexuses of Responsible Leadership and Environmental, Task, and Contextual Performance

Sulaman Hafeez Siddiqui; Ali Ijaz; Rahil Nazar Chawla; Muqaddas Naz

doi:10.26710/sbsee.v5i1.2529

Sulaman Hafeez Siddiqui The Islamia University of Bahawalpur, Pakistan https://orcid.org/0000-0003-3004-0516
Ali Ijaz The Islamia University of Bahawalpur, Pakistan
Rahil Nazar Chawla University of the Punjab, Lahore, Pakistan
Muqaddas Naz University of the Punjab, Lahore, Pakistan

DOI: https://doi.org/10.26710/sbsee.v5i1.2529

Keywords: Responsible Leadership, Contextual performance, Task performance, Environmental performance, Banking sector of Pakistan

Abstract

Purpose: The current study assessed the function of responsible leadership in the banking industry using the stakeholder theory. The current study also looks into the connection between responsible leadership and task, contextual, and environmental performance.

Methodology: The banking industry's 389 branch employees, including branch managers, business development officers, general banking officers, branch operation managers, cash officers, and relationship managers, were surveyed using a survey questionnaire approach to gather data. Mplus was used to analyze the data using the structural equation modeling method.

Findings: The study's findings showed that ethical leadership had a direct influence on a firm's environmental (0.204), task (0.365), and contextual performance (0.188), as well as indirect effects through varied sustainability policies.

Implications: it implies the significance of sustainable policies concerning responsible leadership and a company's success. The current study is a pioneering effort that added to the body of knowledge on the relationship between organizational tasks, contextual performance, and environmental performance in Pakistan's banking industry. It also evaluated the role of sustainability strategies in the interim.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Author Biographies

Sulaman Hafeez Siddiqui, The Islamia University of Bahawalpur, Pakistan

Associate Professor, Institute of Business Management and Administrative Sciences, The Islamia University of Bahawalpur, Pakistan

Ali Ijaz, The Islamia University of Bahawalpur, Pakistan

PhD Scholar, Institute of Business Management and Administrative Sciences, The Islamia University of Bahawalpur, Pakistan

Rahil Nazar Chawla, University of the Punjab, Lahore, Pakistan

PhD Scholar, Hailey College of Banking and Finance, University of the Punjab, Lahore, Pakistan

Muqaddas Naz, University of the Punjab, Lahore, Pakistan

Hailey College of Commerce, University of the Punjab, Lahore, Pakistan

References

Abbasi, S. G., Tahir, M. S., Abbas, M., & Shabbir, M. S. (2022). Examining the relationship between recruitment & selection practices and business growth: An exploratory study. Journal of Public Affairs, 22(2), e2438.

Aguinis, H., & Burgi-Tian, J. (2021). Talent management challenges during COVID-19 and beyond: Performance management to the rescue. BRQ Business Research Quarterly, 24(3), 233-240.

Agussani, A., & Akrim, A. (2020). Enhancing social performance of NGOs operation in Indonesia through external positive pressure: mediating role of orientation dimensions and sustainable practices. Journal Of Security And Sustainability Issues, 10(October), 108-122.

Ahmad Zawawi, A. (2020). An analysis on the role of trust on nursing team contextual performance. Journal of Administrative Science, 17(2), 210-218.

Alafeshat, R., & Aboud, F. (2019). Servant leadership impact on organizational performance: The mediating role of employee engagement. International Journal of Human Resource Studies, 9(3), 85-100.

AlNuaimi, B. K., Al Mazrouei, M., & Jabeen, F. (2020). Enablers of green business process management in the oil and gas sector. International Journal of Productivity and Performance Management.

Ambad, S. N. A., Kalimin, K. M., Damit, D. H. D. A., & Andrew, J. V. (2021). The mediating effect of psychological empowerment on leadership styles and task performance of academic staff. Leadership & Organization Development Journal, 42(5), 763-782.

Anwar, G., & Abdullah, N. N. (2021). The impact of Human resource management practice on Organizational performance. International journal of Engineering, Business and Management (IJEBM), 5.

Arif, S., & Akram, A. (2018). Transformational leadership and organizational performance: the mediating role of organizational innovation. SEISENSE Journal of Management, 1(3), 59-75.

Asif, R., & Nisar, S. (2021). EXPLORING THE RELATIONSHIP BETWEEN EMPLOYEES TURNOVER AND CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF BANKING SECTOR IN PAKISTAN. Academy of Accounting and Financial Studies Journal, 25, 1-14.

Biswas, A. (2021). DESIGNING OF SUSTAINABILITY BALANCED SCORECARD IN HEALTH CARE SECTOR–CONTEXTUAL REFERENCE TO THE EMERGENCE OF PANDEMIC. Management Accountant, 58-58.

Colley, J., & Spyridonidis, D. (2022). Responsible Leadership and Sustainability. In Unprecedented Leadership (pp. 139-159): Springer.

Conway, J. M. (1999). Distinguishing contextual performance from task performance for managerial jobs. Journal of applied Psychology, 84(1), 3.

Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting and Social Change, 173, 121092.

Demerouti, E., Derks, D., Ten Brummelhuis, L. L., & Bakker, A. B. (2014). New ways of working: Impact on working conditions, work–family balance, and well-being. In The impact of ICT on quality of working life (pp. 123-141): Springer.

Dong, W., & Zhong, L. (2022). How and when responsible leadership facilitates work engagement: a moderated mediation model. Journal of Managerial Psychology.

Dongrey, R., & Rokade, V. (2021). Assessing the Effect of Perceived Diversity Practices and Psychological Safety on Contextual Performance for Sustainable Workplace. Sustainability, 13(21), 11653.

El-Khalil, R., & El-Kassar, A.-N. (2018). Effects of corporate sustainability practices on performance: the case of the MENA region. Benchmarking: An International Journal, 25(5), 1333-1349.

FARH, J. L., Dobbins, G. H., & CHENG, B. S. (1991). Cultural relativity in action: A comparison of self‐ratings made by Chinese and US workers. Personnel psychology, 44(1), 129-147.

Fok, L. Y., Morgan, Y.-C., & Zee, S. (2021). The Linkages Between Commitment to Sustainability, Organizational Culture, Quality Management, and Organizational Performance. International Journal of Applied Management and Technology, 20(1), 6.

Fornell, C. (1982). A second generation of multivariate analysis: Measurement and evaluation (Vol. 2): Greenwood.

Haque, A., Fernando, M., & Caputi, P. (2018). Responsible leadership, affective commitment and intention to quit: An individual level analysis. Leadership & Organization Development Journal.

He, J., Morrison, A. M., & Zhang, H. (2019). Improving millennial employee well-being and task performance in the hospitality industry: The interactive effects of HRM and responsible leadership. Sustainability, 11(16), 4410.

He, J., Morrison, A. M., & Zhang, H. (2021). Being sustainable: The three‐way interactive effects of CSR, green human resource management, and responsible leadership on employee green behavior and task performance. Corporate Social Responsibility and Environmental Management, 28(3), 1043-1054.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.

Hurduzeu, R.-E. (2015). The impact of leadership on organizational performance. SEA–Practical Application of Science, 3(07), 289-293.

Ijaz, A., Siddiqui, S. H., & Rasheed, R. (2020). SDGs Implementation and Future Recommendations: A Case of Banking Sector in Pakistan. Pakistan Journal of Social Sciences (PJSS), 40(4).

Islam, M. (2022). Does financial development cause environmental pollution? Empirical evidence from South Asia. Environmental Science and Pollution Research, 29(3), 4350-4362.

James, K., & Priyadarshini, R. (2021). Responsible leadership: A new paradigm for organizational sustainability. Management and Labour Studies, 46(4), 452-470.

Javed, M., Akhtar, M. W., Hussain, K., Junaid, M., & Syed, F. (2021). “Being true to oneself”: the interplay of responsible leadership and authenticity on multi-level outcomes. Leadership & Organization Development Journal.

Kalsoom, Z., Khan, M. A., & Zubair, D. S. S. (2018). Impact of transactional leadership and transformational leadership on employee performance: A case of FMCG industry of Pakistan. Industrial engineering letters, 8(3), 23-30.

Kappagoda, U. (2018). Self-efficacy, task performance and contextual performance: A Sri Lankan experience. Available at SSRN 3198802.

Kharlamov, A. A., & Parry, G. (2021). The impact of servitization and digitization on productivity and profitability of the firm: a systematic approach. Production Planning & Control, 32(3), 185-197.

Kim, K. (2018). Proactive versus reactive corporate environmental practices and environmental performance. Sustainability, 10(1), 97.

Kim, M.-S., & Thapa, B. (2018). Relationship of ethical leadership, corporate social responsibility and organizational performance. Sustainability, 10(2), 447.

Lawrence, S. R., Collins, E., Pavlovich, K., & Arunachalam, M. (2006). Sustainability practices of SMEs: the case of NZ. Business strategy and the environment, 15(4), 242-257.

Lee, C. (2021). Factors influencing the credibility of performance measurement in nonprofits. International Review of public Administration, 26(2), 156-174.

Liao, Z., & Zhang, M. (2020). The influence of responsible leadership on environmental innovation and environmental performance: The moderating role of managerial discretion. Corporate Social Responsibility and Environmental Management, 27(5), 2016-2027.

Lin, C.-C. T., & Peng, T.-K. T. (2010). From organizational citizenship behaviour to team performance: The mediation of group cohesion and collective efficacy. Management and Organization Review, 6(1), 55-75.

Lynham, S. A., & Chermack, T. J. (2006). Responsible leadership for performance: A theoretical model and hypotheses. Journal of Leadership & Organizational Studies, 12(4), 73-88.

Manesh, M. H., Singh, J. S. K., & Hussain, I. A. B. (2018). Transformational leadership and contextual performance: A quantitative study among nursing staff in Kuala Lumpur. International Journal of Management and Sustainability, 7(2), 101-112.

Mantikei, B., Christa, U. R., Sintani, L., & Negara, D. J. (2020). The Role of Responsible Leadership in Determining the Triple-Bottom-Line Performance of the Indonesian Tourist Industry. Contemporary Economics, 14(4), 463-474.

Mapar, M., Jafari, M. J., Mansouri, N., Arjmandi, R., Azizinezhad, R., & Ramos, T. B. (2020). A composite index for sustainability assessment of health, safety and environmental performance in municipalities of megacities. Sustainable Cities and Society, 60, 102164.

Min, J. (2017). Effects of the use of social network sites on task performance: Toward a sustainable performance in a distracting work environment. Sustainability, 9(12), 2270.

Miska, C., & Mendenhall, M. E. (2018). Responsible leadership: A mapping of extant research and future directions. Journal of Business Ethics, 148(1), 117-134.

Mushtaq, R., Shafqat, T., Khan, M. M., Ellahi, A., & Ansar, A. (2021). Does psychological empowerment mediates the association of workplace spirituality with organizational citizenship behavior and employee burnout? Asia Proceedings of Social Sciences, 7(2), 145-149.

Nguyen, T. H., Elmagrhi, M. H., Ntim, C. G., & Wu, Y. (2021). Environmental performance, sustainability, governance and financial performance: Evidence from heavily polluting industries in China. Business Strategy and the Environment, 30(5), 2313-2331.

Peters, B. G. (2019). Institutional theory in political science: The new institutionalism: Edward Elgar Publishing.

Pradhan, S., & Pradhan, R. K. (2015). An empirical investigation of relationship among transformational leadership, affective organizational commitment and contextual performance. Vision, 19(3), 227-235.

Pusparini, E. S., Soetjipto, B. W., Rachmawati, R., & Sudhartio, L. (2018). Stakeholder pressure and its effect on environmental proactiveness and firm performance: The mediating role of dynamic managerial capabilities. Pertanika Journal of Social Sciences and Humanities, 26(August), 197-212.

Rahim, S. H., & Malik, M. I. (2010). Emotional intelligence & organizational performance:(A case study of banking sector in Pakistan). International Journal of Business and management, 5(10), 191.

Rehman, Z. U., Shafique, I., Khawaja, K. F., Saeed, M., & Kalyar, M. N. (2021). Linking responsible leadership with financial and environmental performance: determining mediation and moderation. International Journal of Productivity and Performance Management.

Rönkkö, M., & Cho, E. (2022). An updated guideline for assessing discriminant validity. Organizational Research Methods, 25(1), 6-14.

SBP. (2022). SBP Regulated Institutes State Bank of Pakistan. Retrieved from https://www.sbp.org.pk/f_links/f-links.asp

Shah, S. H. A., Saeed, M. A., Yasir, M., Siddique, M., & Umar, A. (2018). The impact of Transformational leadership on turnover intentions directly and through talent engagement in the banking sector of twin cities of Pakistan. Journal of Managerial Sciences, 3(11), 410-430.

Siddiqui, S. H., & Ijaz, A. (2022). Conceptualizing the Sustainable Workplace Well-being: A Measurement Framework. Pakistan Journal of Social Sciences, 42(2), 363-380.

Siddiqui, S. H., Viswanathan, K., & Rasheed, R. (2020). Linking Responsible Leadership and Sustainability Challenges. In Oxford Research Encyclopedia of Education.

Singh, S. K., Pradhan, R. K., Panigrahy, N. P., & Jena, L. K. (2019). Self-efficacy and workplace well-being: moderating role of sustainability practices. Benchmarking: An International Journal.

Tsui, A. S. (2021). Responsible research and responsible leadership studies. Academy of Management Discoveries, 7(2), 166-170.

Ullah, S., You, Q., Ali, A., Ullah, W., Jan, M. A., Zhang, Y., . . . Xie, X. (2019). Observed changes in maximum and minimum temperatures over China-Pakistan economic corridor during 1980–2016. Atmospheric research, 216, 37-51.

Voegtlin, C., Patzer, M., & Scherer, A. G. (2012). Responsible leadership in global business: A new approach to leadership and its multi-level outcomes. Journal of business ethics, 105(1), 1-16.

Wang, Y., Shen, T., Chen, Y., & Carmeli, A. (2021). CEO environmentally responsible leadership and firm environmental innovation: A socio-psychological perspective. Journal of Business Research, 126, 327-340.

Wei, W., Xin-Gang, Z., & Jieying, W. (2022). Can support policies promote the innovative diffusion of waste-to-energy technology? Environmental Science and Pollution Research, 1-16.

WIDODO, W., & YUSUF, F. A. (2021). The effect of organizational citizenship and visionary leadership on contextual performance: A case study in Indonesia. The Journal of Asian Finance, Economics and Business, 8(6), 377-386.

Xin-gang, Z., Wei, W., & Jieying, W. (2022). The policy effects of demand-pull and technology-push on the diffusion of wind power: A scenario analysis based on system dynamics approach. Energy, 261, 125224.

Xin-gang, Z., Wei, W., & Ling, W. (2021). A dynamic analysis of research and development incentive on China's photovoltaic industry based on system dynamics model. Energy, 233, 121141.

Young, H. R., Glerum, D. R., Joseph, D. L., & McCord, M. A. (2021). A meta-analysis of transactional leadership and follower performance: Double-edged effects of LMX and empowerment. Journal of Management, 47(5), 1255-1280.

Zailani, S. H. M., Eltayeb, T. K., Hsu, C. C., & Tan, K. C. (2012). The impact of external institutional drivers and internal strategy on environmental performance. International journal of operations & production management.

Zhang, J. A., Chen, G., O’Kane, C., Xiang, S., & Wang, J. (2022). How employee exploration and exploitation affect task performance: The influence of organizational competitive orientation. The International Journal of Human Resource Management, 33(5), 930-964.

Zhang, S., Wang, Z., & Zhao, X. (2019). Effects of proactive environmental strategy on environmental performance: mediation and moderation analyses. Journal of cleaner production, 235, 1438-1449.

Zhang, Y., Khan, U., Lee, S., & Salik, M. (2019). The influence of management innovation and technological innovation on organization performance. A mediating role of sustainability. Sustainability, 11(2), 495.