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Responsible leadership and triple-bottom-line performance—do corporate reputation and innovation mediate this relationship?

Muzhar Javed (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)
Hafiz Yasir Ali (COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)
Muhammad Asrar-ul-Haq (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)
Moazzam Ali (COMSATS University Islamabad, Islamabad Campus, Islamabad, Pakistan)
Syed Ali Ashiq Kirmani (COMSATS University Islamabad, Islamabad Campus, Islamabad, Pakistan)

Leadership & Organization Development Journal

ISSN: 0143-7739

Article publication date: 4 May 2020

Issue publication date: 30 May 2020

1597

Abstract

Purpose

Drawing on stakeholder theory and contingency theory, this study empirically investigates the relationship between responsible leadership (RL) and each dimension of triple-bottom-line (TBL) performance. Moreover, we tested the mediating effect of corporate reputation (CR) and innovation between RL and TBL performance.

Design/methodology/approach

Perceptual data were collected from 227 senior-level Pakistani managers using a questionnaire survey. Structural equation modeling (SEM) was used to test the direct and mediating effect hypotheses.

Findings

The results revealed that RL significantly and positively affects each dimension of TBL performance. Further, innovation mediated the relationship between RL and each dimension of TBL performance. However, CR did not mediate the relationship between RL and environmental performance.

Originality/value

This is maiden study to empirically investigate the effect of RL on meso-level outcome. Further, this study would be among the few ones to use TBL as a measure of corporate performance. Moreover, it will be the first study to test the mediating role of CR and innovation in the above-mentioned relationship and will also validate contingency theory.

Keywords

Citation

Javed, M., Ali, H.Y., Asrar-ul-Haq, M., Ali, M. and Kirmani, S.A.A. (2020), "Responsible leadership and triple-bottom-line performance—do corporate reputation and innovation mediate this relationship?", Leadership & Organization Development Journal, Vol. 41 No. 4, pp. 501-517. https://doi.org/10.1108/LODJ-07-2019-0329

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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