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We investigate how green transformational leadership (GTL) influences green innovative service behavior (GISB), particularly in the hospitality sector, which faces significant environmental challenges. Drawing from social identity theory (SIT), we introduce green organizational identity (GOI) as a mediating mechanism through which GTL fosters GISB. Furthermore, we propose a moderated mediation model whereby a green knowledge-sharing climate (GKSC) serves as a first-stage moderator to further understand how and when GTL fosters GISB through GOI.

We employed a multi-study design (i.e. two independent studies across China) to test the hypothesized relationships. Study 1 involved full-time employees from the service industry in China, including healthcare, telecommunication, and insurance sectors (N = 313). Study 2 employed a time-lagged dyadic design, collecting responses from employees and their managers at three different time points in the hospitality sector (N = 419).

In Study 1, the simple mediation results demonstrate that GTL positively influences GISB through the mediating role of GOI. Moreover, in Study 2, the moderating effect of GKSC was supported, showing that in organizations with strong green knowledge-sharing climate, the indirect effect of GTL on GISB via GOI is amplified.

In our work, we address a critical gap in the literature by identifying both the mechanisms and contextual factors that explain how GTL influences GISB. By introducing GOI as a mediator and GKSC as a first-stage moderator, the study advances understanding of how leadership, organizational identity, and a green-supportive climate interact to promote eco-friendly innovation in service organizations. This contributes both theoretically and practically to the development of effective strategies for advancing green initiatives in the service sector.

The paper aims to explore and explain sustainable behaviours in an organizational context using self-determination theory, suggesting that individuals are likely to be engaged in green practices when supported by their needs.

The study used three waves of longitudinal design, consisting of 702 executives in leadership roles across public and private companies with an average of 15–20 years of work experience. Professionals working throughout PAN India, the USA, Germany and Australia provided us with the data.

Green transformational leaderships play a pivot in fostering optimism in employees when recrafting their work. Employees being encouraged to evaluate their jobs within the organization’s capacity would bring meaningful change and envision a sustainable future. All the study hypotheses were supported, highlighting the importance of green-focused leadership with individual agencies in line with the organization’s green values.

Using sustainable practices advances organizations in providing green commitment through leadership. Implementing this in the organization can help achieve long-term success by ensuring sustainable practices are embedded in culture rather than a peripheral initiative promoting sustainable decision-making and behaviours.

The study provides insights into the factors influencing decisions to maintain and adopt sustainable practices by providing a deeper understanding of green behaviour change and strategies for promoting pro-environmental strategies in organizations.