Fostering Sustainable Supply Chain Performance Through Inclusive Leadership and a Green Psychological Climate With a Mediation of Employee Green Creativity

ABSTRACT Emerging globalization and environmental awareness are capturing the attention of firms, driving a focus on sustainable performance, which requires a green strategy and a shift in leadership philosophy. Therefore, the current research investigated the effect of inclusive leadership (IL), both directly and indirectly through employee green creativity (EGC) and psychological climate, on sustainable supply chain performance (SSCP). Data were collected from 2105 supply chain professionals employed in various manufacturing industries within the United States. The hypotheses were evaluated using structural equation modeling through Smart PLS. The findings revealed that IL positively impacts the green psychological climate (GPC). In contrast, IL has a significant impact on both EGC and SSCP. GPC enhances SSCP and is a key antecedent to EGC. The study reveals that GPC mediates the IL‐SSCP relationship, while EGC impacts SSCP, thereby mediating both IL‐SSCP and GPC‐SSCP connections. These findings underscore the pivotal role of leadership in promoting green creativity and driving sustainable performance within organizations. This research contributes to the understanding of how leadership and sustainability intersect. As we see, IL encourages EGC, helping companies become more environmentally sustainable. Current research also contributes to the componential theory of creativity by suggesting that inclusiveness can be considered an internal motivator for EGC.