Purpose: The purpose of this paper is to answer two questions. What is the impact of ethical leadership on followers’ creativity and organizational innovation? What are the mechanisms through which ethical leadership influences creativity and organizational innovation?Design/methodology/approach: Considering a market-oriented criterion to measure organizational innovation, the data were collected from 322 small-sized information technology firms working in Pakistan. Multilevel modeling and hierarchical regression analyses were used to explore the direct and indirect effects of ethical leadership on creativity and innovation, respectively.Findings: The results show that ethical leadership is an important predictor of both individual and organizational creativity. For the individual level, the results of multilevel modeling indicate that there is a positive link between ethical leadership and employee creativity. Furthermore, ethical leadership affects employee creativity through knowledge sharing and psychological empowerment. At the organizational level, the results reveal that ethical leadership is positively associated with organizational innovation directly.Practical implications: The findings imply that ethical leadership is an important tool to promote creativity and for the advancement of innovation for developing countries as well as for newly developed industries.Originality/value: This study is first to highlight the role of ethical leadership for organizational innovation. The main contribution of the study is to explore creativity as potential mediator for ethical leadership–organizational innovation nexus; where a market-oriented criterion is taken as proxy of organizational innovation.

Purpose: The purpose of this study is to examine how individual dimensions of green supply chain management (GSCM) practices affect firms’ financial performance directly and through environmental performance. Furthermore, the authors investigate the contingent role of institutional pressures on the direct link between GSCM practices and environmental performance and GSCM practices and financial performance.Design/methodology/approach: Using a convenience sampling technique, data were collected from 238 textile firms in the province of Punjab, Pakistan. Hayes’ PROCESS macro was used to analyze the hypotheses.Findings: The findings demonstrate that GSCM practices (green manufacturing, green purchasing, eco-design, cooperation with customers and green information systems) have a significant direct impact on firms’ financial performance directly and through environmental performance. Additionally, institutional pressures significantly moderate the nexus of GSCM practices-environmental performance and environmental performance-financial performance.Practical implications: Textile firms should implement GSCM practices not just because of the pressure from regulatory bodies but also to elevate their environmental and financial performance. Government should also play its role in influencing the organizations for the adoption of GSCM practices, as its role is a significant one in preserving the environment.Social implications: Because of less emission, energy usage and wastage, environmental performance will be increased, which affect the society positively.Originality/value: Along with studying the GSCM practices in the textile industry of Pakistan, drawing upon the institutional theory, the contingent role of institutional pressures on two stages (first, between GSCM practices and environmental performance, and secondly, between GSCM practices and financial performance) is the novelty of this study.

Purpose: The aim of this current study is to investigate the effects of knowledge management capabilities – knowledge infrastructure capability and knowledge processing capability – on organizational agility and business performance. This study also examines organizational agility as an underlying mechanism between knowledge management capabilities and business performance relationship.Design/methodology/approach: The data were collected from one hundred and sixty-nine organizations. Partial least squared (PLS)–based structural equation modeling (SEM) technique was employed to test the study hypotheses. The analysis was performed in WarpPLS 6.0 software.Findings: Results revealed that both dimensions of knowledge management capabilities positively influence organizational agility and business performance. In addition to the direct effect, knowledge management capabilities also have an indirect effect on business performance mediated through organizational agility.Research limitations/implications: This study attempts to develop an integrated framework to conceptualize a capability–capacity–performance relationship, where it suggests that knowledge management capabilities are important organization-level capabilities which facilitate organizations to develop necessary capacities i.e. organizational agility to successfully perform business activities.Practical implications: The findings help the managers to understand the contribution of knowledge management capabilities towards business performance. The findings imply that business performance can be enhanced by development of a culture - enabled by a knowledge-oriented structure and technology – that encourages knowledge sharing among employees because when employees are not sharing information, they are prone to repeating the same mistakes which they and other people have already committed. Likewise, strategies such as mentoring cross training, business process empowerment and technical training programs allow employees to gain business knowledge and foster organizational agility.Originality/value: Novelty of this study is to develop and empirically test an integrated framework of a capability–capacity–performance relationship. It suggests that knowledge management capabilities (firm capability) enable organizations to develop organizational agility (firm capacity) which in turn enhances performance.

The purpose of this study is to examine the role of green transformational leadership (TL) that influences green product and process innovation. More specifically, drawing together from leadership and capability-based view, the present study views green dynamic capabilities (GDCs) as an important underlying mediating mechanism through which green TL prompts green innovation. It also examines the moderating role of environmental dynamism between green TL and GDCs. Data were collected from manufacturing SMEs using the convenience sampling technique at two points in time. PLS-SEM was utilised to perform the analysis. The results demonstrate that green TL has a significant direct and positive association with green product and process innovation. The results also show a positive effect of green TL on GDCs, and GDCs in turn promote green innovation. Furthermore, these findings suggest that environmental dynamism plays moderating role in the relationship between green TL and GDCs, which implies that green TL is more effective in determining GDCs under high environmental dynamism. The study contributes to theoretical and practical knowledge by elucidating the relationships among green TL and green product and process innovation, underscoring areas of managerial development that can affect sustainable product and process innovation, specifically in manufacturing SMEs industry.

Purpose: Drawing from dynamic capability (DC) theory, this study aims to investigate how big data analytics (BDA)-enabled dynamic capabilities (DCs) prompt firm performance. This study proposes that BDA-enabled DCs lead firms toward simultaneous exploration and exploitation of new knowledge about markets and products (i.e. marketing ambidexterity) which in turn improves firms' market and financial performance. This study also examines if environmental dynamism strengthens the aforementioned relationship.Design/methodology/approach: This study uses survey questionnaire and data were collected in the form of two heterogeneous samples from Turkey and Pakistan. Partial least square-structural equation modeling (PLS-SEM) was used to test the hypotheses.Findings: Results reveal that BDA-enabled DCs positively affect both dimensions of marketing ambidexterity (exploration and exploitation). Marketing exploration and exploitation have positive effects on firms' market and financial performance. Results also demonstrate that environmental dynamism moderates the link between BDA-enabled DCs and firms' marketing exploitation. The moderating effect for BDA-enabled DCs and firms' marketing exploration was not consistent across both samples.Research limitations/implications: This study contributes to the literature of BDA and marketing ambidexterity in the light of DC theory in a way that when and how the marketing ambidexterity, derived from BDA-enabled DCs, has a positive impact on firm performance. Moreover, findings imply that the development and enhancement of BDA-enabled DCs facilitate firms to calibrate marketing exploitation and exploration to seek new knowledge about markets and products and using such knowledge to achieve superior performance.Originality/value: The novelty of present study is development of dynamic capabilities-based framework which sheds light on the role of big data for sensing, seizing and (re)configuring firms' resources to develop marketing ambidextrous capabilities in order to stay successful. From methodological perspective, this study uses two heterogeneous samples to assess robustness of results for ensuring greater generalizability and theoretical resonance.