The Effect of Leadership Style Towards Corporate Culture and the Implementation of Green Management and Its Performance

The Effect of Leadership Style Towards Corporate Culture and the Implementation of Green Management and Its Performance

Kusdi (Brawijaya University, Indonesia)
DOI: 10.4018/IJEGCC.2020010102

Abstract

The purpose of the study is to provide empirical evidence about the correlation between leadership style, culture of organization, implementation of green management, and company performance. Leadership is the key to running a firm. Leaders with the appropriate leadership style can shape corporate culture and impact a firm's performance. This research has shown that the transformational leadership style can significantly impact corporate culture, as opposed to the transactional leadership style. How much each style plays a role on the firm depends on the conditions of the firm, and one leadership style will tend to be more dominant than the other. Another finding is that corporate culture significantly impacts a firm's performance. It shows that corporate culture plays an important role in firms, whether they are large scale or small scale firms (SMEs), in that they make sure members of an organization have the same perspective and values and are able to ensure optimum corporate performance.
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2. Literature Review And Hypotheses

Literature review is important especially in explanatory research that tests particular theories because the literature is the basis for developing hypotheses. The literature review in the study focuses on theories that support the correlation among the following variables: leadership, corporate culture, implementation of green management and corporate performance.

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