Driving Sustainable Change: Green Transformational Leadership, Job Crafting, and Work Engagement in Frugal Eco-Innovation

Abstract

Frugal Eco-Innovation (FEI) has become crucial for supporting the hospitality industry in third-world countries facing sustainability challenges. FEI can potentially enhance the environmental performance of employees in the hospitality sector. However, there is a lack of empirical studies on this topic in the existing literature. Therefore, our research aims to investigate the impact of Green Transformational Leadership (GTL), Green Work Engagement (GWE), and Green Job Crafting (GJC) on frugal eco-innovation. We conducted our study using a self-administered questionnaire, collecting data from 298 employees working in tourist hotels in Bali. We employed covariance-based structural equation modeling to test our hypotheses. Our statistical analysis revealed a significant positive relationship between green transformational leadership and overall frugal eco-innovation (b=0.215, t=2.954, p<0.003). This result suggests that GTL significantly promotes frugal eco-innovation for sustainable practices among green hoteliers. Furthermore, our results indicated that GTL is equally important for both green job crafting and green work engagement. GTL practices were positively correlated with both variables (b=0.377, t=5.289, p<0.000; b=0.542, t=7.744, p<0.000). Lastly, we found that GTL has a significant indirect effect on FEI, mediated by GWE and GJC, with a partial mediation effect. This empirical investigation is the first that provides an organized way to examine the effects of green transformational leadership on frugal eco-innovation and recommends the most effective means for hoteliers to embrace the best policies for sustainable practice. This study has important policy implications for harnessing individual development into resource-constraint green management practice. Additionally, GTL provides a supportive environment for employees with green crafting and engagement to realize their green potential.