The research, published in the journal Discover Sustainability by a team from HUTECH University and Van Lang University in Ho Chi Minh City, set out to answer a question that has been surprisingly underexplored: does a proactive environmental strategy push firms toward digital transformation and green innovation at the same time, and do those two channels then carry the firm toward better sustainable performance? Drawing on the Resource-Based View and Dynamic Capabilities Theory, the authors built an integrated model and tested it statistically across a large, diverse sample of enterprises.

The theoretical framing matters. The Resource-Based View holds that firms win when they possess valuable, rare and hard-to-imitate resources, while Dynamic Capabilities Theory emphasises the ability to sense change, seize opportunities and reconfigure operations accordingly. A proactive environmental strategy, in this reading, is not merely compliance or public relations. It is an organisational-level resource that can be converted into dynamic capabilities, specifically the technological and innovative capacities that let a firm monitor, manage and reduce its environmental footprint while staying commercially competitive.

To test this, the researchers surveyed senior managers at 602 manufacturing enterprises and analysed the data using partial least squares structural equation modelling, or PLS-SEM, in the software package SmartPLS 4. This technique allows researchers to estimate multiple cause-and-effect pathways simultaneously and to assess how well each proposed link holds up in the data. The measurement scales, adapted from established literature, asked managers to rate statements about everything from top-management commitment and environmental training to the use of IoT sensors, artificial intelligence and eco-design principles.

The headline finding is clear: proactive environmental strategy is positively associated with both digital transformation and green innovation, and each of those, in turn, is positively associated with sustainable performance. The pattern is consistent with partial mediation, meaning that part of the benefit of an environmental strategy flows through these two channels rather than acting directly. Notably, the analysis found the two pathways to be parallel and comparably weighted, rather than one dominating the other. Digital transformation and green innovation function as complementary mechanisms, not rivals.

The digital pathway is particularly striking in its practical detail. Managers reported using IoT sensors to monitor energy consumption and emissions in real time across facilities, and deploying artificial intelligence or advanced analytics to optimise resource flows and cut waste. Digital technologies, respondents said, had fundamentally changed how firms monitor, manage and report their environmental impact. In other words, the environmental agenda is giving firms a concrete reason to invest in digital tools, and those tools then deliver the granular data needed to make sustainability measurable.

The green innovation pathway runs alongside it. Firms with proactive environmental strategies reported developing new products with significantly lower environmental impact than existing alternatives, investing substantially in research and development for clean technologies and processes, and embedding eco-design principles of reduce, reuse and recycle throughout product development. Sustainable performance itself was assessed across three dimensions: reduced greenhouse gas emissions and environmental discharges, improved financial results through resource-efficiency savings, and growing revenue from environmentally certified or green-labelled products and services.

Where does the environmental strategy come from in the first place? The study identified four antecedents that predict it: organisational support, dynamic environment, green transformational leadership and stakeholder pressure. Organisational support showed up as strong top-management commitment, dedicated budgets for environmental initiatives and employee training. Dynamic environment captured rapidly shifting competitive, customer and regulatory conditions. Green transformational leadership described leaders who articulate a compelling green vision, challenge employees to think creatively about environmental problems and inspire active contribution to environmental goals. Stakeholder pressure reflected customers demanding environmental certification, rising regulatory compliance burdens and growing community expectations.

One of the most interesting results is a null finding. The researchers tested whether industry type, specifically resource-intensive versus high-technology manufacturing, moderates the link between environmental strategy and digital transformation. It does not. The relationship appears stable across manufacturing contexts, which is good news for policymakers and managers alike: the strategy-to-digital connection is not confined to high-tech sectors but holds for heavy industry too. This suggests that the mechanisms at work are organisational rather than sector-specific, rooted in how firms marshal resources and respond to dynamic environments.

The implications reach well beyond Vietnam. Emerging economies are industrialising fast, and their manufacturing sectors face intense scrutiny over emissions and resource use. This study offers evidence that the dual transition, green and digital, can be managed as a single coherent strategy rather than two separate programmes. For managers, the message is that leadership vision, internal support and responsiveness to stakeholders build the environmental strategy that then unlocks both digital capability and innovation. For researchers, the integrated model demonstrates how two classic theories can be combined to explain how strategic intent becomes operational capability. As global supply chains increasingly demand verified sustainability, firms that treat environmental strategy as a driver of technological renewal may find themselves ahead of the curve, converting regulatory pressure into competitive advantage rather than cost.

Subject of Research: The relationship between proactive environmental strategy, digital transformation, green innovation and sustainable performance in Vietnamese manufacturing firms

Article Title: Environmental strategy and digital transformation: pathways to green innovation and sustainable performance in Vietnamese manufacturing firms

Article References: Tran, V. T., Nguyen, T. B., Le, N. N. T., Ngo, N. N. T., & Mai, B. D. (2026). Environmental strategy and digital transformation: pathways to green innovation and sustainable performance in Vietnamese manufacturing firms. Discover Sustainability. https://doi.org/10.1007/s43621-026-04755-9

Image Credits: AI Generated

DOI: 10.1007/s43621-026-04755-9

Keywords: proactive environmental strategy, digital transformation, green innovation, sustainable performance, Vietnamese manufacturing, emerging economies, PLS-SEM, Resource-Based View, dynamic capabilities, green transformational leadership, stakeholder pressure, sustainability

At the forefront of this research are scholars who argue that leadership has a profound impact on organizational culture and subsequent environmental outcomes. Green transformational leadership embodies a visionary approach, where leaders not only inspire but also empower employees to adopt sustainable practices. The emphasis lies on fostering a sense of collective responsibility and commitment toward environmental stewardship.

The study meticulously delves into the synergies between green transformational leadership and green HRM. Green HRM encompasses policies and practices that encourage employees to engage in eco-friendly initiatives. This ranges from recruitment and training programs focused on sustainability to performance evaluation systems that reward environmentally responsible behavior. When leaders embody a green transformational style, they cultivate an organizational climate that prioritizes these initiatives.

Moreover, the research highlights the pivotal role of innovation in achieving sustainable environmental performance. The interplay between leadership, HRM, and innovation creates a framework where organizations can explore new technologies and processes that minimize their ecological footprint. By encouraging a culture of creativity and experimentation, organizations can develop innovative solutions to complex environmental challenges.

One critical insight from the study is the necessity for leaders to articulate a clear vision of sustainability. This vision acts as a guiding principle, aligning organizational goals with broader environmental objectives. Leaders must communicate the benefits of green practices, not just for the environment but also for the organization’s long-term resilience and profitability. A well-articulated vision fosters buy-in from employees and stakeholders, making it easier to implement transformative changes.

The research further suggests that training and development play a crucial role in reinforcing the principles of green transformational leadership. Leaders must be equipped with knowledge and skills that enable them to effectively champion sustainability initiatives. This entails understanding the intricacies of green HRM practices and creating a supportive environment for innovation. Continuous learning and professional development can bolster leaders’ capabilities to navigate the complexities of sustainable practices.

Another vital aspect covered in the study is the importance of stakeholder engagement. Leaders must extend their influence beyond the organizational confines, engaging with various stakeholders including customers, suppliers, and the community at large. This collaborative approach enhances the effectiveness of sustainability efforts and fosters a sense of shared responsibility. Engaging stakeholders can provide valuable insights and resources that drive innovation and implementation of green practices.

Additionally, the research highlights case studies of organizations that have successfully implemented green transformational leadership. These case studies serve as compelling evidence of how this leadership style can lead to tangible environmental benefits and improved organizational performance. They offer practical insights into the strategies employed, the challenges faced, and the lessons learned, providing a roadmap for other organizations aspiring to embrace sustainability.

Crucially, the study underscores the need for a holistic perspective on environmental performance. It advocates for a multidimensional approach that integrates various organizational functions, including operations, marketing, and finance. By viewing sustainability as a core strategic priority, organizations can create cohesive and comprehensive plans that drive long-term success.

To measure the impact of green transformational leadership on environmental performance, the authors propose a framework that incorporates both qualitative and quantitative metrics. This measurement framework can help organizations assess their progress, identify areas for improvement, and communicate their achievements to stakeholders. Transparency in reporting enhances credibility and builds trust among consumers and investors.

As businesses navigate the complexities of sustainability, the importance of resilience becomes evident. Leaders must be adaptable, responding to emerging challenges and opportunities in the environmental landscape. The study posits that green transformational leadership fosters a culture of resilience, enabling organizations to thrive in a rapidly evolving market with sustainability at its core.

In conclusion, the research posits that green transformational leadership is more than a trend; it is a fundamental driver for sustainable environmental performance in today’s corporate landscape. By integrating green HRM and fostering a culture of innovation, organizations can unlock the full potential of their employees and create lasting positive impacts on the environment. As this body of work gains traction, it may very well influence the trajectory of business practices in the pursuit of sustainability.

The implications of this research are far-reaching. As more organizations embrace green transformational leadership, they contribute to a collective movement toward a more sustainable future. Leaders are not just influencers within their companies; they are key players in addressing pressing environmental challenges that transcend geographic and economic boundaries. The time for action is now, and the path forward is lit by the principles of green transformational leadership.

Sustainable leadership is not just a responsibility; it is an opportunity for organizations to innovate and differentiate themselves in a competitive marketplace. As leaders rise to the challenge, they will shape not only their organizations but also the world we inhabit. With each step taken toward sustainability, businesses can inspire others to follow suit, creating a ripple effect that has the potential to transform our global economy for the better.

Subject of Research: Green transformational leadership’s impact on sustainable environmental performance through green HRM and innovation.

Article Title: Green transformational leadership as a catalyst for sustainable environmental performance through green HRM and innovation.

Article References:

Haider, S.A., Akbar, A., Aman-Ullah, A. et al. Green transformational leadership as a catalyst for sustainable environmental performance through green HRM and innovation.
Discov Sustain (2026). https://doi.org/10.1007/s43621-025-02497-8

Image Credits: AI Generated

DOI: 10.1007/s43621-025-02497-8

Keywords: Green transformational leadership, sustainability, environmental performance, green HRM, innovation.