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Many firms struggle to implement strategies that can successfully enhance the environmental sustainability of their processes. Drawing on the theories of green intellectual capital and complementary assets, this study develops a model describing the mechanism whereby firms can translate a green (i.e., environmental) strategy into a superior green process innovation performance (GPIP).

Regression analysis of multi-source survey data collected from 514 managers at 257 firms (257 top management members and 257 safety or environmental managers) was used to test the hypotheses.

A firm's green strategic intent has positive effects on the three aspects of green intellectual capital (i.e., human, organizational and relational capital). In turn, these three aspects have positive effects on GPIP. Moreover, green organizational capital positively moderates the effect of green relational capital on GPIP, whereas it negatively moderates the effect of human capital on GPIP.

In order to implement a green strategy successfully, especially in polluted industries such as the chemical industry, managers need to develop not only the firm's tangible resources but also its intangible resources. The more they invest in green organizational capital, the higher the level of GPIP that can be achieved. On average, a firm's green human capital is more important than its organizational and relational capital. Moreover, its organizational capital helps capture the benefits of its relational capital, but it impairs the creativity of its human capital.

The authors contribute to the literature on green strategy implementation by suggesting that green intellectual capital plays a mediating role in the relationship between a firm's green strategic intent and GPIP.

The purpose of this paper is to investigate the forces driving organizational innovation, particularly CEO transformational leadership as it affects external and internal social capital in top management teams.

Survey questionnaires were administered to 90 Chinese top management teams. Structural equation modeling was used to test the hypothesized relationships.

Both internal and external social capital mediated the relationship between transformational leadership and organizational innovation.

Organizations should strengthen internal and external capital of top management teams to reap maximal innovation outcomes from transformational leadership.

The findings contribute to the transformational leadership, social capital, and innovation literature first by showing how leadership influences innovation through largely neglected mechanisms – internal and external social capital. Second, a social capital focus challenges the tacit assumption that transformational leadership has only internal influences by showing that it potentially spills over to the external domain.

Managers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long been factored into organizational theories, scholars still lack a complete understanding of the specific managerial capabilities that drive innovation in today's digital economy. The present study builds on dynamic managerial capabilities theory to close this research gap. The paper proposes managers' dynamic capabilities and their three underlying drivers – managerial human capital, social capital, and cognition – as a direct antecedent to digital firms' innovativeness.

The study draws on survey data from German Industry 4.0 manufacturing firms, which were analyzed using regression analysis.

The results confirm managers' dynamic capabilities as facilitators of innovation. In contrast to previous research on nondigital industries, the findings demonstrate that only the complete portfolio of managers' dynamic capabilities promotes innovativeness in digital firms. The study provides evidence for the importance of dynamic managerial capabilities in the digital economy yet contradicts previous research on nondigital industries related to the advantageousness of managers' human capital, social capital, and cognition for innovation.

The study contributes to the literature by being the first to holistically test the effects of dynamic managerial capabilities on innovation in digital firms. The results offer a nuanced account of managers' dynamic capabilities, thereby expanding dynamic managerial capabilities theory to the digital economy.

This paper adopts an intellectual capital perspective to investigate the role of owners who are ethnic minorities in the foreign market expansion performance of SMEs, and in particular considers the human capital dimension of intellectual capital.

Based on the empirical investigation of a sample of 10,326 small- and medium-sized US high-tech manufacturing enterprises, the authors’ results reveal a positive relationship between the number of foreign markets where these SMEs operate and their financial performance, and that this effect is reinforced by the presence of ethnic minority owners, as ethnic minorities constitute a valuable source of intellectual capital which bring value to firms.

The authors’ findings reveal the importance of intellectual capital in an SME’s leadership position, specifically in terms of having individuals from normally disadvantaged groups as owners. In this sense, policymakers are crucial in supporting the inclusion of ethnic minorities in SME ownership, through advantageous treatment in firms, for example.

The study presents practical implications for managers seeking foreign market expansion. In addition, when defining ownership structure (e.g., in the start-up phase), the role of human capital, in the form of ethnic minorities, should not be neglected, especially if an SME intends to operate or is already operating in different national contexts.

The authors’ results provide important insights into the positive effect of human capital on SME foreign market performance. The idea of a moderating role played by owners from ethnic minorities suggested here contributes to the literature on human capital and is one of the first attempts to consider this moderating factor in this relationship, especially in the SME context.

Boards presently are considered the most critical component in improving corporate governance (CG). Board diversity is increasingly being recommended as a tool for enhancing firm performance. Academic research and regulatory action regarding board diversity are focussed mainly on gender and ethnic composition of boards. However, the perspective of board members on board diversity and its impact is mostly missing. Moreover, while strategic leadership perspective suggests that a broader set of upper echelon’s characteristics may shape their actions, empirical evidence investigating the impact of less-explored attributes of diversity is almost non-existent. While the research on the input–output relationship between board diversity and firm performance remains equivocal, an intervening relationship between board diversity and board effectiveness needs to be understood. The purpose of this paper is to address all three limitations and explore the subject from board members’ perspective.

The paper presents the findings of qualitative, exploratory research conducted by interviewing 42 board members of FTSE 350 companies. The data are analysed thematically.

The findings of the research suggest that board members of FTSE 350 companies consider the diversity of functional experience to be a critical requirement for boards’ role-effectiveness. Functionally diverse boards manage external dependencies more effectively and challenge assumptions of the executive more efficiently, thus improving CG. The findings significantly contribute to the literature on board diversity, as well as to strategic leadership theory and other applicable theories. The research is conducted with a relatively small but elite and difficult to approach set of 42 board members of FTSE 350 companies.

The paper makes a unique and significant contribution to praxis by presenting the perspective of practitioners of CG – board members. The findings may encourage board nomination committees to seek board diversity beyond the gender and ethnic characteristics of directors. The findings may also be relevant for policy formulation, as they indicate that functionally diverse boards have improved effectiveness in a range of board roles.

Board diversity is about building a board that accurately reflects the make-up of the population and stakeholders of the society where the company operates. The aim of board diversity is to cultivate a broad range of attributes and perspectives that reflects real-world demographics as boards need to continue to earn their “licence to operate in society” as organisations have a responsibility to multiple constituents and stakeholders, including the community and the wider society within which they exist. Building social capital through diversity has value in the wider context of modern society and achieving social justice.

The paper makes an original and unique contribution to strategic leadership theory by strengthening the argument of the theory. The paper explores beyond widely researched attributes of gender and ethnicity on boards and explores the impact of a less-researched characteristic of directors – their functional experience. Moreover, the paper opens the “black box” of CG – boards, and presents the perspectives of board members. The findings indicate that board members in FTSE 350 boards define diversity more broadly than academics and regulatory agencies often do.

The purpose of this paper is to examine the role of innovative HR practices as an important mechanism through which strategic flexibility affects firm performance as well as the role of female leadership in this relationship.

Data were gathered from a sample of 113 firms in China. The authors collected information on organizational strategy, HR practices, CEO information, corporate social responsibility and other firm characteristics in terms of firm age, location, and financial performance. Conditional procedural analysis was conducted to test the model.

The authors found strong evidence in support of the mediation relationship in which organizations with a strong focus on strategic flexibility are more likely to adopt Innovative HR Practices. Furthermore, the authors found that the extent to which firms have adopted innovative HR practices has a strong effect on employee productivity. In addition, the authors found that female leadership enhances strategic flexibility-performance relationship.

Information on strategic flexibility, HR practices and firm performance was collected at the same time. Future studies based on panel data would be helpful to establish the causal relationships in the model.

The authors’ findings suggest that practitioners should put more emphasis on developing innovative HR practices, as they are required by strategic flexibility.

Firms pursuing strategic flexibility should feel more confident when appointing a female CEO, because the results show that female leadership may enhance the positive impact of strategic flexibility on firm performance.

This research study is the first empirical examination of the mediating influence of innovative HR practices on the relationship between strategic flexibility and firm performance. The study also shows that female leadership benefits an organization in implementing strategic flexibility. The results are of value to researchers, human resource management managers, employees, and executives who are seeking to develop practices that are flexible and innovative in order to stay competitive in dynamic environments.

Ethical leadership is at the forefront of what matters in today’s business life and current issues, with a view to making strong moral decisions through bilateral communication. Service innovation behavior is important in terms of individual and institutional actions in the process of producing and implementing new ideas. Investigating the mediating role of psychological capital which consists of self-efficacy, optimism, hope and psychological endurance dimensions, between ethical leadership and service innovation behavior, is a matter to be investigated. This study aims to assess the impact of ethical leadership on service innovation behavior by means of a comprehensive literature review. In this framework, psychological capital forms the scope of researching the mediating role.

This study was conducted with 376 blue-collar workers randomly selected from 140 company which were selected from 1,294 joint stock companies among 76,882 companies operating in the province of Adana in Turkey and registered in the Adana Chamber of Commerce, by applying a questionnaire of 40 items.

As a result of the factor analysis, 6 items which could not provide reliability were extracted from the scale and the remaining 34 items were distributed in three factors and the validity of the construct validity was measured by the convergence and divergence methods. Construct reliability (CR) values were found to be statistically significant (SRMR: 0.50, RMSEA = 0.058, IFI: 0.955, CFI = 0.97, GFI = 0.96, AGFI = 0.86, TLI = 0.97, χ²/s.d. = 2.264) when it was above 0.7, and the structural equation model determined that the research data and the initially determined model are compatible. Ethical leadership has a significant effect on psychological capital (ß = 0.224, p < 0.001), ethical leadership has a significant effect on innovation (ß = 0.113, p < 0.001), psychological capital was found to have a significant influence on service innovation (ß = 0.965, p < 0.001), and ethical leadership was mediated by psychological capital on service innovation behavior (SIE = 0.235).

Further research is needed to assess conducting research in enterprises with different cultural characteristics. This paper provides the effectiveness of ethical leadership and psychological capital factors, which are effective in improving employee service innovation behavior and enabling managers to develop human resources strategies in this respect.

The results provide the impact of ethical leadership on the productivity of employees in the workplace and provide practical benefits in terms of developing innovation-oriented service development behaviors.

The innovative behaviors of the employees enable the development of innovative ideas in social life by contributing to consumer satisfaction and economy. Ethical leadership ensures positive behaviors in the society by ensuring that employees in the workplace develop justice sentiments.

The mediating role of psychological capital between ethical leadership and service innovation behavior has not been investigated before. In this study, the effects of self-efficacy, optimism, hope and resilience factors were investigated in providing ethical leaders and employees, creating value in the enterprise, and in providing innovation-focused services for employees.