Green leadership and sustainable supply chain performance: The mediating and moderating effects

This study examines how green leadership, green innovation, and artificial intelligence influence sustainable supply chain performance in an emerging economy. Drawing on Transformational Leadership Theory and Dynamic Capabilities Theory. The study tests a model using survey data from 405 managers and non-managers in Bangladesh’s manufacturing and healthcare sectors. Results show that green leadership directly affects sustainable supply chain performance and indirectly through green innovation, indicating partial mediation. Green innovation enhances sustainable supply chain performance as a key operational mechanism for environmental strategies. Artificial intelligence plays a dual role: it directly improves sustainable supply chain performance as a digital capability. It negatively moderates the relationship between green leadership and sustainable supply chain performance, suggesting a substitution effect. Greater adoption of artificial intelligence weakens leadership’s impact, suggesting that digital systems can replace some leadership functions. The study refines Transformational Leadership Theory and Dynamic Capability, demonstrating that leadership effects are both direct and capability-driven, and that digital technology reshapes leadership effectiveness. For practitioners, aligning leadership, innovation , and artificial intelligence is crucial for sustainable performance in digital environments.