Green Transformational Leadership’s Impact on Employee Retention: Does Job Satisfaction and Green Support Bridge the Gap?

Abstract

This study explores the impact of green transformational leadership (GTL) on employee retention in the hospitality sector, with a specific focus on the mediating roles of employee satisfaction and perceived green organizational support (PGOS). Grounded in self-determination theory and organizational support theory, the research examines both the direct and indirect effects of GTL on employee retention. GTL fosters a sustainability-driven work environment, motivating employees through shared environmental values, which enhances their job satisfaction and perceived organizational support. These factors, in turn, strengthen employees’ commitment and willingness to stay within the organization. Using SmartPLS 3 for structural equation modeling (SEM), data collected from hospitality employees were analyzed to assess the hypothesized relationships. The findings confirm that GTL positively influences employee retention, both directly and indirectly, through the mediating effects of employee satisfaction and PGOS. This study contributes to the growing body of knowledge on sustainable leadership by highlighting the crucial role of green leadership practices in improving employee retention in environmentally conscious organizations. Implications for managers and policymakers in the hospitality sector are discussed, emphasizing the need for sustainability-driven leadership approaches to enhance workforce stability.

1. Introduction

Employee retention is essential for the success of hotels, as it significantly influences operational efficiency, service quality, and customer satisfaction. High turnover rates in the hospitality sector lead to increased recruitment and training expenses, disrupt the consistency of service, and negatively affect the organizational culture (A. Singh & Hassan, 2024). When employees stay longer, they gain a better understanding of guest preferences and company expectations, which enhances the overall guest experience and builds customer loyalty (Eyoun et al., 2025). Furthermore, a stable workforce fosters better teamwork, boosts morale, and promotes higher employee engagement, all of which drive productivity and long-term success (Stor, 2024).

Self-determination and organizational support theories are two powerful frameworks that can help organizations, particularly in the hospitality industry, enhance employee retention. Both theories focus on fostering positive employee experiences and satisfaction, which in turn influences their commitment to the organization.

Self-determination theory highlights the importance of intrinsic motivation through the fulfillment of three psychological needs: autonomy, competence, and relatedness. Meeting these needs leads to greater job satisfaction, engagement, and lower turnover rates (Ryan & Deci, 2023). In the hospitality industry, where work is often physically and emotionally demanding, offering employees autonomy, skill development, and meaningful relationships is crucial (Priyadarshini et al., 2023). Furthermore, organizational support theory can be used to enhance retention. It suggests that employees who feel their organization supports their well-being are more likely to stay with the company (Kurtessis et al., 2017). Hotels that provide green organizational support, such as promoting sustainability and eco-friendly initiatives, can boost employees’ sense of value and support (Rubel et al., 2025). Overall, research consistently indicates that employees who feel intrinsically motivated and supported by their organization are more likely to stay, which ultimately contributes to the hotel’s long-term success (Almustafa et al., 2025). Considering self-determination and organizational support theories, GTL may be a valuable tool for enhancing employee retention. To enlarge, green transformational leadership may greatly increase hotel staff retention by encouraging participation, organizational commitment, and a feeling of environmental purpose. Incorporating green values into their vision and motivating staff members with eco-friendly actions may improve morale and work satisfaction. Current research indicates that hotel staff are more likely to demonstrate organizational citizenship behaviors and stick with the company when they believe there is excellent environmental leadership (Alsawy et al., 2025; Giergia, 2025). Additionally, green transformational leaders often promote the growth and welfare of their staff, which lowers the likelihood of turnover (Oktaysoy et al., 2025). In the highly competitive hotel sector, where employee turnover is significant, these leadership techniques provide a competitive edge.

Although financial incentives have long been the main strategy for keeping employees, a new study indicates that they may not have a significant influence on maintaining long-term commitment (Alnsour & Kanaan, 2021), particularly in value-driven workplaces like the hospitality industry. In contrast, GTL has become a more viable and psychologically satisfying method of employee retention by motivating staff members with a vision of ethical behavior, environmental responsibility, and meaningful employment. By encouraging autonomy, competence, and a feeling of shared purpose—essential components of self-determination theory—GTL addresses internal motivating drives (Ryan & Deci, 2000). For instance, Kusi et al. (2021) discovered that GTL increases psychological empowerment and perceived organizational support, which in turn enhances employee retention. Financial incentives frequently fall short in meeting deeper emotional and value-based requirements, even if they could offer momentary satisfaction.

GTL builds upon transformational leadership by incorporating environmental sustainability into leadership strategies. Based on transformational leadership theory, GTL focuses on inspiring and motivating employees to achieve organizational goals while promoting eco-friendly behaviors (Lathabhavan & Kaur, 2023). Leaders who embrace GTL not only drive innovation and commitment but also cultivate a sense of environmental responsibility among employees, aligning corporate objectives with sustainable practices (Janjua et al., 2024).

Green transformational leadership (GTL) has four main components: “idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration”. Leaders exhibiting idealized influence serve as sustainability role models, demonstrating ethical decision-making and environmentally responsible behaviors (Özgül & Zehir, 2021). Inspirational motivation enables them to communicate a compelling vision for sustainability, fostering employee dedication to green initiatives. Intellectual stimulation encourages innovative thinking to address environmental issues, while individualized consideration ensures employees receive the necessary guidance and resources to contribute to sustainability efforts (Moustafa Saleh et al., 2024).

Existing research on GTL has predominantly examined its effects on sustainability-related outcomes, including environmental performance (Luo et al., 2025), green innovation (X. Chen et al., 2025), corporate social responsibility (Taamneh et al., 2025), green innovative service behavior (Waqas et al., 2025), and environmental stewardship (Saini et al., 2025). While GTL’s role in advancing sustainability is well-documented, its spillover effect on employee retention remains insufficiently explored (Gom et al., 2021).

Moreover, despite recent research that has started to examine the influence of Green Transformational Leadership (GTL) on sustainable employee outcomes like retention (L. Li et al., 2021; Septiani & Herminingsih, 2025), the psychological processes underpinning these relationships are still not thoroughly explored. Specifically, studies have largely neglected the mediating roles of PGOS and employee satisfaction, which are essential in explaining how GTL influences retention outcomes (Gazi et al., 2025; Z. Hameed et al., 2022). Similarly, employee satisfaction plays a crucial role in determining workplace attachment and long-term retention, yet its mediating role in the green transformational leadership–turnover relationship remains underexplored (Rockstuhl et al., 2020; Shahzad et al., 2025). Additionally, the combined impact of green support and employee satisfaction was neglected. Much of the existing literature tends to examine these factors in isolation, lacking a comprehensive theoretical framework that fully captures the complexity of employee behavior (Begum et al., 2022).

For example, Kusi et al. (2021) found that GTL contributes to employee retention through mechanisms such as psychological empowerment and perceived organizational support. Likewise, Mittal and Dhar (2016) demonstrated that GTL enhances employees’ environmental commitment and encourages pro-environmental behavior. Nevertheless, these studies often adopt a linear approach and overlook the potential interplay between green support and satisfaction as dual mediators influencing retention. More critically, they seldom integrate Self-Determination Theory (SDT) and Organizational Support Theory (OST) to provide a deeper explanation of the psychological and relational pathways through which GTL operates.

Finally, the current study is conducted in the hospitality industry in Egypt, which has high employee turnover, job dissatisfaction, and limited career growth prospects (Abdou et al., 2022). Factors such as workplace stress, job insecurity, low wages, and lack of employee engagement contribute to these high turnover rates, ultimately affecting organizational stability and service quality (Krishnan & Rathakrishnan, 2025). Despite these challenges, the potential role of GTL as a strategic approach to enhancing employee retention while promoting sustainability remains underexplored. Therefore, investigating how GTL can address these industry-specific challenges to create a more stable and engaged workforce would provide valuable insights for leadership and sustainability research.

The current study aims to explore the direct effect of GTL on employee retention, in addition to exploring the indirect effect via PGOS and employee satisfaction. This research is expected to contribute theoretically to leadership and organizational behavior literature by integrating self-determination theory and organizational support theory to explain the direct and indirect effects of GTL on employee retention. While GTL has been widely associated with sustainability and pro-environmental behaviors (Z. Zhang et al., 2023), its spillover effect on employee retention remains underexplored, particularly in the hospitality sector. This study provides a holistic framework to explain how GTL enhances employee retention, not just through leadership influence but also by fostering intrinsic motivation, job satisfaction, and perceived organizational support (Priyadarshini et al., 2023). Finally, examining these relationships within the hospitality industry, particularly in developing economies like Egypt, adds to the growing literature on leadership effectiveness in high-turnover sectors.

1.1. Underpinned Theories

1.1.1. Organizational Support Theory

To examine the effect of GTL on employees’ retention through perceived green organizational support, the organizational support theory will be utilized. It is a widely studied framework that explains how employees develop perceptions of the extent to which their organization values their contributions and well-being. It suggests that when employees perceive strong organizational support, they are more committed, satisfied, and less likely to leave their jobs (Hossin et al., 2021).

The key precursors of perceived organizational support include organizational fairness, leadership support, and human resource practices, along with workplace conditions (Karim et al., 2025). Organizational support theory explains the impact of these factors through the lenses of social exchange theory and self-enhancement processes, which shape employees’ positive attitudes and behaviors toward the organization. From a social exchange perspective, organizational support fosters a sense of reciprocity, motivating employees to contribute more to the organization out of a perceived obligation or expectation of rewards (Aldabbas et al., 2025).

Aligning with organizational support theory, GTL plays a crucial role in employee retention by creating an environment that supports environmental values. Leaders who focus on sustainability initiatives boost employees’ perceived organizational support, leading to increased commitment and lower turnover intentions (Oktaysoy et al., 2025).

1.1.2. Self-Determination Theory

Self-determination theory offers a theoretical framework that relates to the environment, basic psychological needs, motivation, and behavioral outcomes, making it a key theory in understanding the interactions between leadership and employees’ behavior, including satisfaction and retention (Saini et al., 2025). The core premise of this theory is the fulfillment of basic psychological needs, which play a crucial role in driving individual behavior and self-development. These needs are categorized into three dimensions: autonomy, competence, and relatedness (Z. Zhang et al., 2023).

GTL emphasizes motivating employees toward sustainability goals, fostering a sense of autonomy, competence, and relatedness, as outlined in self-determination theory. Studies suggest that GTL enhances employee satisfaction by meeting intrinsic needs, leading to increased commitment and retention. Employees are more likely to stay with organizations that support their values and well-being through sustainable practices (Waqas et al., 2025).

Self-Determination Theory (SDT) and Organizational Support Theory (OST) together provide a well-rounded framework for understanding the psychological and organizational processes through which Green Transformational Leadership (GTL) promotes employee retention. GTL fulfills employees’ intrinsic motivational needs outlined by SDT by encouraging autonomy, enhancing competence, and fostering a sense of relatedness within the context of environmentally sustainable work (Saini et al., 2025). At the same time, GTL enhances perceived green organizational support—an essential aspect of OST—by showing that the organization values employees’ efforts in sustainability and prioritizes their well-being (Gazi et al., 2025). This combination of external support (green support) and internal motivation (employee satisfaction) boosts affective commitment and lowers the intention to leave (Oktaysoy et al., 2025), ultimately supporting greater employee retention.

2. Theoretical Background

2.1. Green Transformational Leadership

Leadership plays a critical role in shaping complex organizational performance by establishing a compelling vision for both present and future business activities in the marketplace and society (Ahsan, 2025).

Transformational leadership is composed of four key dimensions. The first dimension, idealized influence, involves leaders acting as ethical and professional role models whom employees admire and trust (Mesaadah & Al Awaysha, 2025). The second, inspirational motivation, refers to a leader’s ability to communicate a clear vision of the future that aligns with the organization’s strategic goals, while also guiding and inspiring employees to bring that vision to life (Luo et al., 2025). The third, intellectual stimulation, fosters a culture of creativity, where leaders encourage employees to develop innovative solutions that enhance organizational performance (Harsono et al., 2025). Finally, individualized consideration reflects a leader’s role in nurturing employee commitment and loyalty by providing personalized support, addressing concerns, and improving well-being, ultimately making employees feel more confident in proposing new ideas and strategies (Nanjundeswaraswamy et al., 2025). Transformational leadership boosts employee commitment to organizational goals by promoting encouragement, support, motivation, and innovation. This approach enhances creativity, fuels innovation, and helps sustain competitiveness (Qalati et al., 2022).

GTL extends transformational leadership by incorporating its four main dimensions—“idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration”—within an environmental sustainability framework (Ismail, 2025). GTL signifies leaders’ commitment to environmental and social responsibility, inspiring employees to adopt sustainable practices. It also encourages employees to pursue eco-friendly goals and instill motivation beyond fulfilling mandatory green practices and fostering voluntary green behaviors (W. Li et al., 2020). GTL practices often yield numerous benefits, including improved sustainable business performance, a stronger competitive advantage, enhanced environmental outcomes, and cost reductions (Mory-Alvarado et al., 2023).

2.2. Perceived Green Organizational Support (PGOS)

PGOS represents employees’ beliefs regarding how much their organization appreciates their contributions, listens to their ideas, and prioritizes their well-being. Grounded in Social Exchange Theory, which emphasizes mutual reciprocity, perceived organizational support encourages employees to reciprocate the support they receive (Hameli et al., 2025). Hence, it is deemed instrumental in motivating employees to adopt green behaviors, fostering a workplace culture that supports sustainability efforts (Bhatnagar & Aggarwal, 2020). According to Bonaiuto et al. (2022), when employees view their leaders as supportive, actively advocating for their work and success, this leads to greater engagement and improved organizational outcomes.

Similarly, PGOS pertains to employees’ perceptions of how much their organization values and upholds their environmental beliefs and principles (W. U. Hameed et al., 2021). Effective workplace sustainability initiatives require leadership involvement, strong support from top management, HR policies that encourage eco-friendly innovation, and organizational frameworks that facilitate creativity (Bhatti et al., 2022). Employees frequently interpret personalized support and attention from green transformational leaders as a form of environmental advocacy within the organization, resulting in increased PGOS. This, in turn, motivates employees to exceed expectations in addressing environmental concerns (W. G. Kim et al., 2020).

2.3. Employee Satisfaction

Employee satisfaction is a crucial factor in maintaining a healthy organization, as it directly influences employees’ ability to perform their responsibilities effectively. Additionally, employee satisfaction plays a significant role in employees’ decisions to remain in or leave their current roles (Hoxha et al., 2024). Satisfaction is evident in its ability to reduce turnover, burnout, and absenteeism, which contribute to organizational stability (Madigan & Kim, 2021).

Employee satisfaction is significantly influenced by green transformational leaders, who inspire a sense of purpose beyond profit-driven objectives. Studies indicate that when leaders demonstrate a strong commitment to sustainability, employees experience greater intrinsic motivation, job fulfillment, and work engagement (S. X. Zhang et al., 2022).

2.4. Employee Retention

Retention refers to an organization’s ability to keep employees in their roles for an extended period (Yang et al., 2012). Regardless of the industry, retaining valuable employees is vital, as turnover incurs substantial costs for organizations. Employee turnover depletes the workforce, negatively impacting overall organizational performance (Thomas & Aurora, 2024). A high turnover rate also results in several detrimental consequences, including increased expenses, disruptions to daily operations, and a loss of employee expertise (Aboutaleb et al., 2025).

Researchers have proposed various retention strategies, including job diversity, job rotation, a positive work environment, and leadership attitudes (Ali et al., 2023). Strong leadership is essential for employee retention, as it cultivates a positive work environment, offers support, and acknowledges employees’ efforts. By providing guidance, motivation, and growth opportunities, leaders help employees feel valued and engaged, leading to lower turnover rates (AbdELhay et al., 2025). Effective leadership also fosters open communication, trust, and a sense of belonging, which boosts job satisfaction and commitment. By nurturing a culture of support and development, leaders can greatly impact employee loyalty, ultimately enhancing retention and organizational success (Waseem et al., 2024). Similarly, Conroy et al. (2023) reported that transformational leadership positively impacts retention by promoting trust, motivation, and employee development. Despite these findings, the high turnover rate in hospitality suggests that leadership practices must go beyond traditional approaches, incorporating sustainability-focused models such as green transformational leadership to align with evolving employee values and environmental concerns.

3. Hypotheses Development

3.1. Green Transformational Leadership (GTL) Effect on Employee Retention

GTL broadens traditional transformational leadership by prioritizing environmental sustainability and encouraging employees to adopt eco-friendly behaviors. Under the lens of organizational support theory, the green transformational leader sends a clear message that the organization values its employees’ contributions and is dedicated to environmental initiatives. Green transformational leaders also act as ambassadors of the organization’s core values by communicating a strong, sustainable vision, demonstrating eco-friendly practices, and empowering staff to participate in green activities (Lin et al., 2022). This behavior, in turn, enhances employees’ perception that the organization supports not only their career development but also its wider environmental responsibilities (S. X. Zhang et al., 2022).

GTL is expected to make significant efforts to minimize employees’ intention to leave by prioritizing effective human resource management (Nguyen et al., 2024). Previous research also suggests that if leaders fail to address employees’ negative psychological perceptions, their intention to leave the organization is likely to rise. Similarly, a study conducted by Gom et al. (2021) involving 162 hotel employees found a significant negative relationship between transformational leadership and employees’ intention to leave. Given the nature of transformational leadership, which emphasizes supporting and inspiring employees while mitigating workplace stress, it is expected that turnover intentions will naturally decline due to transformational leadership (Çop et al., 2021). It can be concluded that:

H1. 

Green transformational leadership positively affects employee retention.

3.2. The Mediating Role of Perceived Green Organizational Support (PGOS)

The concepts of perceived organizational support (POS) and perceived green organizational support (PGOS) are similar yet different. PGOS explicitly captures the view that the business encourages employees’ engagement in environmental and sustainability activities, whereas POS refers to employees’ general opinion that their organization appreciates their contributions and cares for their well-being (Eisenberger et al., 1986). By bringing organizational principles and workers’ ecological values into alignment, PGOS strengthens the emotional bond and commitment of employees and amplifies the motivating impacts of POS. According to recent studies conducted in the hotel sector, PGOS greatly increases employee engagement, green behavior, and retention, especially for those who are concerned about sustainability (Karatepe et al., 2022). As more and more hotels embrace green practices, PGOS becomes a key component in luring and keeping eco-aware employees.

PGOS reflects employees’ perception that their organization prioritizes and values environmental sustainability while encouraging their green initiatives (Aboramadan et al., 2022a). When employees recognize that their organization is genuinely committed to environmental efforts and provides necessary resources to support eco-friendly behaviors, they are more likely to engage in sustainable practices (Dumont et al., 2017).

Furthermore, by consistently engaging in sustainable practices and reinforcing a green vision, green transformational leaders cultivate a culture of trust and reciprocity. According to organizational support theory, when employees believe that their leaders and the organization genuinely care about their welfare and align with their personal values, they are more inclined to respond with greater commitment and discretionary effort (Shanock et al., 2019). Observing their leaders’ active advocacy and investment in green practices strengthens employees’ sense of perceived green organizational support. This enhanced support, in turn, motivates them to engage in pro-environmental behaviors, fostering a positive feedback loop that not only propels organizational sustainability but also boosts overall job satisfaction and organizational commitment (K. Y. Kim et al., 2024). Given the above, we propose:

H2. 

Green transformational leadership will be positively associated with perceived green organizational support.

Research suggests that organizational support, particularly in the context of sustainability, enhances job satisfaction and organizational commitment, which are key factors in employee retention (Bose & Khan, 2022). Employees who perceive strong green support from their organization tend to align their personal values with the company’s mission, fostering a sense of purpose and reducing turnover intentions (Ramus & Steger, 2000). Additionally, green organizational support can improve employee well-being by reducing workplace stress associated with environmental concerns and promoting a healthier, more sustainable work environment (Ahmad et al., 2022).

Furthermore, organizations that invest in sustainability initiatives often provide employees with training, incentives, and career development opportunities related to green practices. This investment not only enhances employee engagement but also strengthens their long-term commitment to the organization (Shah, 2023). Hence, it can be hypothesized that:

H3. 

PGOS affects employee retention positively.

PGOS can be seen as a “socio-emotional resource” that represents the organization’s encouragement of employee participation in environmental initiatives within the workplace (Karatepe et al., 2022). This perceived support leads to various positive outcomes at the individual, team, and organizational levels. These effects may relate to environmental sustainability but can also extend to other areas. When employees perceive that their organization not only prioritizes environmental responsibility but also actively supports green initiatives, it reinforces their emotional attachment and commitment to the organization. For example, S. X. Zhang et al. (2022) and C.-J. Wang (2022) found that PGOS is associated with increased organizational identification and loyalty, ultimately leading to lower turnover intentions. Based on the aforementioned discussion, it can be assumed that:

H4. 

PGOS mediates the nexus between green transformational leadership and employee retention.

PGOS significantly impacts employee satisfaction by strengthening their connection to the company’s values and dedication to environmental sustainability (Hossin et al., 2021). When employees recognize that their organization prioritizes sustainable practices through environmentally friendly policies, green initiatives, and responsible leadership, they tend to feel more appreciated and engaged. This alignment enhances their sense of purpose and adds meaning to their work, ultimately increasing job satisfaction (L. Li et al., 2021). Moreover, companies that focus on sustainability often cultivate a supportive and ethical work environment that promotes employee well-being. A strong reputation for environmental responsibility can also instill a sense of pride among employees, further enhancing their commitment and overall job satisfaction (Slijepčević et al., 2024). Considering H2, it can be hypothesized that:

H5. 

PGOS affects employee satisfaction positively.

When employees believe that their organization appreciates their efforts, especially in the realm of environmentally sustainable actions, and is genuinely concerned for their well-being, their overall job satisfaction tends to increase. Green transformational leaders help cultivate this belief by actively involving employees in environmental initiatives, acknowledging their green contributions, and aligning sustainability objectives with employee values (Alwali & Alwali, 2025). These leadership behaviors are interpreted by employees as organizational support, which enhances their satisfaction with both their roles and the broader workplace environment. Research confirms this mediating relationship. For example, scholars demonstrated that perceived green organizational support plays a significant intermediary role in the link between GTL and positive employee outcomes, such as job satisfaction and retention (Kusi et al., 2021). Likewise, Aboramadan et al. (2022b) showed that employees who sense strong environmental support and identification with their organization experience a heightened positive effect of green leadership on satisfaction. These insights highlight the critical function of perceived support in sustainability contexts as a mechanism that connects leadership practices to employee attitudes. Overall, it can be hypothesized that:

H6. 

PGOS mediates the nexus between green transformational leadership and employee satisfaction.

3.3. The Mediating Role of Employee Satisfaction

Employee satisfaction is significantly impacted by the fulfillment of core psychological needs, notably autonomy, relatedness, and opportunities for growth. When employees are granted autonomy in their roles, they gain the freedom to make decisions and customize their work methods, which boosts their intrinsic motivation and overall job satisfaction (Nguyen et al., 2024). Similarly, work environments that nurture relatedness—where individuals genuinely feel connected and can build supportive relationships—play a vital role in enhancing emotional well-being and fostering organizational commitment. Additionally, offering ample opportunities for growth is essential in elevating employee satisfaction. Recent studies have demonstrated that organizations investing in continuous learning and development initiatives experience higher job satisfaction and lower turnover rates (Shiri et al., 2023).

Green transformational leadership, defined by leaders who inspire and drive employees toward environmental sustainability, effectively meets key psychological needs, thereby enhancing job satisfaction. GTL encourages staff to participate in eco-friendly initiatives and provides them with the autonomy to develop innovative solutions to environmental challenges (Waqas et al., 2025). This autonomy mirrors the self-determination theory’s emphasis on self-governance, leading to improved job satisfaction. Furthermore, by offering opportunities for developing skills in green practices, GTL boosts employees’ sense of competence. When employees gain mastery over sustainable tasks, they feel more effective and capable in their roles, which in turn elevates job satisfaction (Khan et al., 2025). Additionally, GTL helps cultivate a culture of shared environmental values, reinforcing a sense of community and belonging among employees. This enhanced relatedness addresses a fundamental psychological need and contributes to greater job satisfaction (S. K. Singh et al., 2020). Based on the aforementioned discussion, it is expected that:

H7. 

Green transformational leadership supports employee satisfaction positively.

Job satisfaction plays a vital role in employee retention, significantly influencing whether individuals choose to stay with or leave an organization. Employees who are highly satisfied with their jobs tend to demonstrate stronger commitment, whereas dissatisfaction often results in increased turnover rates (Aliu & Kutllovci, 2025).

Research indicates that job satisfaction is a crucial factor in retaining employees. Those who are satisfied with their work exhibit greater motivation, engagement, and loyalty, making them less likely to seek other job opportunities (Chang et al., 2021). Furthermore, satisfied employees contribute to a positive workplace atmosphere and enhanced productivity, reinforcing their connection to the organization (Hunsaker & Ding, 2022). Organizations that focus on enhancing job satisfaction through supportive leadership, career development programs, and a positive work environment tend to have lower employee turnover rates (Liu & Wong, 2023). Consequently, it is hypothesized that:

H8. 

Employee satisfaction affects employee retention positively.

Recent research has frequently examined GTL in relation to concepts such as green innovation and green human resource management. However, there is a notable lack of studies exploring GTL from an organizational behavior perspective (Çop et al., 2021). Previous findings suggest that job satisfaction serves as a partial mediator in the relationship between leadership behavior and employees’ intention to leave, emphasizing the significant role of leadership in shaping job satisfaction and, consequently, organizational outcomes (Kasa-Jashari & Janeska-Iliev, 2025). Various studies have demonstrated that transformational leadership positively influences job satisfaction, which in turn reduces employees’ turnover intentions (Manoppo, 2020). This indirect relationship suggests that strong leadership qualities contribute to higher job satisfaction and lower turnover intentions (Oktaysoy et al., 2025). Based on H2, H7, and H8 as seen in Figure 1, it is assumed that:

H9. 

Employee satisfaction mediates the nexus between GTL and employee retention.

H10. 

Perceived green support and employee satisfaction sequentially mediate the impact of GTL on employee retention.

4. Methodology and Measurement

4.1. Instruments and Measures

The study utilized a structured questionnaire survey consisting of two main sections. The first section collected essential demographic data about the participants; the second section assessed the study constructs. A 6-item scale was employed from Y.-S. Chen and Chang (2013) to assess environmental transformational leadership (ETL). Six statements by Paillé and Meija-Morelos (2019) were used to measure perceived organizational support (GPOS). Job satisfaction (J.Satis) was measured using 10 items from Macdonald and Maclntyre (1997). Finally, to study employee retention (ER), eight items were taken from (Kyndt et al., 2009) (see Appendix A). Except for demographic questions, all survey questions were evaluated on a 5-point Likert scale, where 1 indicated “strongly disagree” and 5 signified “strongly agree”. To ensure the questionnaire’s validity, nine academics and thirteen business professionals meticulously reviewed it.

4.2. Data Collection and the Sample

The research utilized a convenience sampling method to gather data from hotel employees in high-rated small- and medium-sized hotels (SMSHs) in Sharm El-Sheikh, Egypt. In our study, we targeted small and medium-sized hotels (SMSHs). According to the Egyptian law, small enterprises are firms that have 10 to 50 employees and sales profits between EGP 1 million (20,000 $) and EGP 50 million (1 million $) annually, while medium-sized enterprises are firms that have 51 to 200 employees and sales profits between EGP 50 million (1 million $) and EGP 200 million (4 million $) annually (Zaazou & Salman Abdou, 2022). Remarkably, the tourism sector is dominated by SMHs; around 99% of the firms can be classified as SMEs (Middleton, 1998). The same is true for the Egyptian hotel industry, with more than 50% of hotels being classified as SMHEs (Mohammad, 2016; Zaazou & Salman Abdou, 2022). The size of SMSHs permits flexibility and concentration that might enable these SMSHs, more than large-sized hotels, to target niche markets and foster personalized accommodation, generating differentiation and creating competitive advantage (Mohammad, 2016). While large-sized hotel chains have more financial resources, SMSHs have the advantage of agility, centralized decision making, and cultural interconnection, making them a perfect context for GTL to take root and succeed. Leaders in these environments can more readily impact behavior, implement pro-environmental practices, and implement green values effectively (Y.-S. Chen et al., 2014; Hillary, 2017; Tzschentke et al., 2004). In collaboration with the South Sinai Governorate, the United Nations Development Program (UNDP) is leading a project to transform Sharm El-Sheikh into a green city, officially declared by the Egyptian Ministry of Environment. This initiative aims to establish Sharm El-Sheikh as the first green and sustainable tourism city in Egypt and the Arab region by promoting sustainability and ensuring that its growth minimizes negative impacts on natural resources (Hefnawy & Ibrahim, 2024). Additionally, Egypt currently hosts 183 green-certified hotels, encompassing approximately 58,000 rooms across 17 tourist destinations. Sharm El-Sheikh alone constitutes 42.6% of these establishments, with 78 certified hotels. These certifications are granted through the Green Star Hotel (GSH) program—Egypt’s official sustainability certification scheme—administered by the Egyptian Hotel Association (EHA) under the supervision of the Ministry of Tourism (El-tahhan, 2023). Accordingly, these hotels will likely strive to adopt leadership approaches, such as GTL, that support retaining environmentally conscious employees as a strategic means to advance and sustain their green change.

Data was gathered between January and March 2025, during which 428 employees finished the survey. All submitted responses were deemed valid, as the mandatory response option was enabled for the specified items. All responses and personal information were handled with complete confidentiality, and participation in the study was entirely voluntary. The study used an electronic questionnaire to streamline data collection. The survey link was distributed to hotel managers in the selected hotels, who, in return, shared it with their employees. The sample consists of 51.9% males and 48.1% females. The dominant age group is 18–29 (75.7%), followed by 40–49 (10.3%). Regarding education, 70.3% hold a bachelor’s degree, while 11.0% have a secondary school qualification.

4.3. Data Analysis

To test the hypothesis, SmartPLS v3.0’s Partial Least Squares Structural Equation Modeling (PLS-SEM) was used, and SPSS 22.0 was used for descriptive analysis. This approach is a relatively recent analytical tool that offers distinct advantages and has gained growing recognition in hospitality specialization (L.-H. Wang et al., 2022). Furthermore, PLS-SEM is among the best methods for analyzing complex models with fewer data constraints and support for different sample sizes. This process consists of two main steps: measurement and structural model assessment (Hair et al., 2017). The data analysis techniques are explained in detail in the results section.

5. Results

5.1. Tests of Common Method Bias (CMB) and Normality

As all variables of our suggested model were estimated using a 5-point Likert scale, there was a potential risk of response consistency, which could increase the covariances between variables and result in common method bias (CMB). Therefore, Harman’s single-factor test was conducted to determine whether all items were loaded onto a single factor. The analysis revealed a total variance of 47.304% for a single factor below 50%, implying that CMB was not a significant problem (Podsakoff et al., 2012). Moreover,

Table 1. Reliability validity.

Diemsnions and Variables	Λ	[VIF]	μ	σ	SK	KU
A. environmental transformational leadership (ETL) (α = 0.864, CR = 0.899, AVE = 0.597)
ETL_1	0.735 **	1.625	3.273	1.210	−0.019	−1.006
ETL_2	0.769 **	1.832	3.215	1.209	−0.012	−0.877
ETL_3	0.804 **	2.032	3.318	1.238	−0.206	−0.836
ETL_4	0.816 **	2.075	3.294	1.246	−0.258	−0.784
ETL_5	0.717 **	1.598	3.586	1.232	−0.427	−0.781
ETL_6	0.789 **	1.890	3.327	1.226	−0.139	−0.848
B. Green perceived organizational support (GPOS) (α = 0.910, CR = 0.930, AVE = 0.691)
GPOS_1	0.778 **	1.811	3.453	1.243	−0.220	−0.944
GPOS_2	0.850 **	2.696	3.614	1.276	−0.437	−0.935
GPOS_3	0.832 **	2.489	3.516	1.270	−0.302	−1.019
GPOS_4	0.869 **	3.123	3.589	1.325	−0.414	−1.042
GPOS_5	0.874 **	3.250	3.561	1.319	−0.430	−0.969
GPOS_6	0.777 **	1.860	3.605	1.247	−0.427	−0.855
C. Job satisfaction (J.Satis) (α = 0.906, CR = 0.922, AVE = 0.542)
J.Satis.1	0.749 **	3.733	3.951	1.086	−0.585	−0.847
J.Satis.2	0.711 **	3.640	3.937	1.111	−0.564	−0.945
J.Satis.3	0.749 **	3.394	3.928	1.104	−0.579	−0.814
J.Satis.4	0.737 **	2.314	3.921	1.120	−0.678	−0.565
J.Satis.5	0.709 **	1.899	3.368	1.129	−0.040	−0.757
J.Satis.6	0.753 **	2.199	3.428	1.190	−0.062	−1.036
J.Satis.7	0.740 **	2.034	3.544	1.197	−0.290	−0.855
J.Satis.8	0.728 **	1.982	3.493	1.196	−0.223	−0.949
J.Satis.9	0.768 **	2.259	3.479	1.253	−0.253	−1.011
J.Satis.10	0.716 **	1.861	3.533	1.264	−0.311	−1.005
D. Employee retention (ER) (α = 0.932, CR = 0.944, AVE = 0.676)
ER_1	0.836 **	2.976	3.579	1.322	−0.481	−0.911
ER_2	0.825 **	3.096	3.509	1.337	−0.387	−1.056
ER_3	0.830 **	3.199	3.488	1.317	−0.336	−1.043
ER_4	0.810 **	2.816	3.484	1.338	−0.404	−0.987
ER_5	0.819 **	3.207	3.713	1.275	−0.649	−0.632
ER_6	0.852 **	3.973	3.773	1.254	−0.683	−0.630
ER_7	0.818 **	3.155	3.808	1.257	−0.737	−0.502
ER_8	0.790 **	2.959	3.953	1.210	−0.899	−0.242

Note: SK = Skewness, KU = Kurtosis, μ = mean, σ = standard deviation, ** = p < 01.

shows no multicollinearity issue because all VIF values range from 1.576 to 2.545, below the threshold of 5.0 (Hair et al., 2019). Additionally, kurtosis and skewness were tested to assess the normality of the data. The kurtosis and skewness scores for all items were below the suggested value of 2.1 and 7.1 (Podsakoff et al., 2012)), as shown in

Table 2. Discriminant validity.

	Fornell–Larcker Criterion				HTMT Matrix
	1	2	3	4	1	2	3	4
1. Employee retention	0.822
2. Environmental transformational leadership	0.730	0.773			0.811
3. Green perceived organizational support	0.784	0.757	0.831		0.843	0.847
4. Job satisfaction	0.771	0.629	0.655	0.736	0.835	0.702	0.710

, indicating that non-normality was not a problem.

5.2. Reliability and Validity

Hair et al. (2019) suggested some criteria to evaluate the “convergent validity” (CV) in PLS-SEM measurement, including “factor loadings (λ), coefficient alpha (α), and construct reliability (CR)”. The recommended threshold for these indicators is ≥0.70, while the average variance extracted (AVE) should be ≥0.50. As presented in Table 1, the measurement model meets all the necessary conditions for adequate CV, thereby validating the consistency of the internal model, ensuring the reliability of responses to items associated with the same construct.

Additionally, Table 2 proves that AVE scores should exceed the subsequent squared inter-dimension correlations, therefore approving the discriminant validity (DV) (Fornell & Larcker, 1981). Additionally, some research recommended looking at the HTMT test to validate the DV. Table 2 also demonstrates that the DV is adequate as HTMTs are <0.90 (Gold et al., 2001).

5.3. Structural Model and Testing Hypotheses

The structural model was validated by measuring beta coefficients (β), R2, and Q2. R2 should be equal to 0.10 or greater, β must be significant, and the Q2 results must be >0.0 (Hair et al., 2019). As depicted in

Table 3. Hypotheses Results.

Hypothesis	β	t	p	F2	Results
Direct effects
H1: ETL → ER	0.194	2.680	0.008	0.058	✔
H1: ETL → GPOS	0.757	29.234	0.000	1.344	✔
H3: GPOS → ER	0.371	5.763	0.000	0.202	✔
H5: GPOS → J.Satis	0.419	6.291	0.000	0.141	✔
H7: ETL → J.Satis	0.312	4.417	0.000	0.078	✔
H8: J.Satis → ER	0.406	8.747	0.406	0.343	✔
Indirect mediating effect
H4: GTL → GPOS → ER	0.281	5.770	0.000		✔
H6: GTL → GPOS → J.Satis	0.317	5.848	0.000		✔
H9: GTL → J.Satis → ER	0.127	4.084	0.000		✔
Sequential mediation
H10: GTL → GPOS → J.Satis→ ER	0.129	4.482	0.000		✔
Employee retention	R2	0.745	Q2	0.467
Green Organizational Support	R2	0.573	Q2	0.364
Job satisfaction	R2	0.470	Q2	0.233

Note: Environmental Transformational Leadership = GTL; Green perceived organizational support = GPOS; Job satisfaction = J.Satis; Employee retention = ER; ✔ = Supported.

, the R² and Q² values demonstrate satisfactory predictive relevance. Employee retention (R² = 0.745, Q² = 0.467) shows acceptable explanatory and predictive power, followed by green organizational support (R² = 0.573, Q² = 0.364) and job satisfaction (R² = 0.470, Q² = 0.233). Additionally, β values were significant at 0.0, as shown in Table 2.

Additionally, the Goodness of Fit (GoF) for models utilizing the PLS-SEM approach can be assessed using the formula proposed by Tenenhaus et al. (2005):

$$\mathrm{GoF}=\sqrt{{AVE}_{avy}\times {R^2}_{avy}}$$

GoF values are classified as low (0.1), medium (0.25), and high (0.36). The GoF for this model is 0.511, indicating a high level of model fit.

Moreover, Following Cohen’s (1988) guidelines, effect sizes are categorized as small (f² ≥ 0.02), medium (f² ≥ 0.15), and large (f² ≥ 0.35). As depicted in Table 3, the effect sizes of our study’s endogenous constructs ranged from small to medium.

After approving the validity and reliability of both the measurement and structural models, hypothesis testing can proceed, as presented in Table 3.

Table 3 and Figure 2 demonstrate that ETL positively influences ER (β = 0.194, p = 0.008), GPOS (β = 0.757, p < 0.001), and J.Satis (β = 0.312, p < 0.001); thus, H1, H2, and H7 can be accepted. Additionally, GPOS has a positive impact on both ER (β = 0.371, p < 0.001) and J.Satis (β = 0.419, p < 0.001), supporting H3 and H5, while J.Satis significantly affected ER (β = 0.406, p < 0.001), confirming H8. Regarding mediation effects, GPOS mediates the relationship between GTL and ER (β = 0.281, p < 0.001), supporting H4, as well as GTL and J.Satis (β = 0.317, p < 0.001), confirming H6. Furthermore, J.Satis mediates the effect of GTL on ER (β = 0.127, p < 0.001), supporting H9. A sequential mediation pathway is also observed, where GTL influences ER through both GPOS and J.Satis (β = 0.129, p < 0.001), proving H10.

6. Discussion and Implications

Organizations across the globe are increasingly acknowledging the significance of sustainability, not just for its environmental advantages but also for its influence on human resource management. GTL has become a key driver in cultivating a sustainability-focused workplace culture, encouraging employees to adopt environmentally responsible behaviors in line with organizational objectives. Rooted in organizational support theory and self-determination theory, this research examines how GTL contributes to employee retention, with PGOS and employee satisfaction serving as mediating factors.

The results suggest that GTL has a direct positive effect on employee retention (β = 0.194; p = 0.008). Transformational leaders play a critical role in shaping employee attitudes and behaviors. When leaders actively promote green values, employees perceive a sense of purpose and alignment with sustainability initiatives, leading to increased engagement and commitment. Recent studies confirm that green leadership fosters a sense of belonging, motivating employees to remain loyal to the organization, as employees are more likely to stay in organizations that integrate environmental responsibility into their leadership practices (Alsheref et al., 2024; Tuan et al., 2024).

The current study also indicated that GTL enhances PGOS (β = 0.757; p = 0.000). This coincides with recent studies that underscore the significant effect of GTL on various employee behaviors, particularly when examined through the lens of organizational support theory (Lathabhavan & Kaur, 2023). By inspiring and motivating employees toward environmental responsibility, GTL cultivates a culture where green initiatives are both valued and actively pursued. Therefore, GTL positively influences employees’ green self-efficacy beliefs, suggesting that leaders who prioritize environmental concerns can effectively bolster their employees’ confidence in undertaking green tasks (Özgül & Demir, 2025). PGOS, in turn, enhances employee retention. When employees recognize their organization’s commitment to environmental sustainability, they often experience a stronger alignment with the company’s values, fostering increased loyalty and a reduced inclination to leave, which confirms H3 (β = 0.371; p = 0.000) and agrees with prior studies (i.e., Alves et al., 2025). Given the direct effect of GTL on perceived organizational support and the effect of perceived organizational support on employee retention, the mediating effect of PGOS between GTL and employee retention was confirmed via our results (β = 0.281; p = 0.000).

Adopting self-determination theory, the results indicated that GTL increases employee retention through satisfaction (β = 0.127; p = 0.000). GTL has gained recognition as a vital leadership approach that promotes environmental sustainability while also enhancing employee well-being. Based on self-determination theory, individuals are most motivated when their core psychological needs—autonomy, competence, and relatedness—are fulfilled (Elshaer et al., 2024a; Ryan & Deci, 2017). Within this framework, GTL plays a crucial role in satisfying these needs, ultimately contributing to greater employee satisfaction. Leaders who demonstrate green transformational qualities inspire employees to participate in sustainable initiatives, strengthening their sense of competence by allowing them to make meaningful contributions to environmental objectives (Z. Zhang et al., 2023). Additionally, GTL fosters autonomy by encouraging employees to engage in creative problem-solving related to sustainability efforts, thereby enhancing intrinsic motivation. Moreover, by cultivating an organizational culture that prioritizes environmental responsibility, GTL bolsters employees’ sense of relatedness, deepening their emotional connection to both their work and their colleagues (X. Chen et al., 2025).

Research consistently highlights the positive correlation between GTL and job satisfaction. Recent studies have highlighted the positive impact of GTL on job satisfaction. This leadership style can be considered a beneficial approach, fostering an environment where employees feel valued and rewarded through the social exchange between leaders and their team members (Moin et al., 2021). Furthermore, this dynamic aligns with Maslow’s Hierarchy of Needs Theory, as employees’ needs for self-actualization and recognition in the workplace reinforce this relationship. The findings are consistent with prior research, which links job satisfaction to employees feeling acknowledged and rewarded by their leaders (H. Wang et al., 2024). Hence, organizations that implement GTL principles offer employees purpose-driven work, aligning with the self-determination perspective that intrinsic motivation enhances job satisfaction while reducing turnover intentions (S. K. Singh et al., 2020). Applying self-determination principles in the workplace enhances both employee satisfaction and retention by fulfilling the core psychological needs of autonomy, competence, and relatedness. Therefore, organizations that prioritize these needs through supportive leadership, meaningful work, and a collaborative culture create an environment where employees are not only satisfied but also motivated to stay long-term, ultimately leading to a more committed and productive workforce (Battaglio et al., 2022). Overall, the mediating effect of employee satisfaction between GTL and employee retention was confirmed.

PGOS also mediated the nexus between GTL and employee satisfaction (β = 0.317; p = 0.000). This was confirmed via prior studies; for example, Elshaer et al. (2024b), have shown that when leaders exhibit an environmentally conscious attitude and foster their teams to support sustainability, employees are more likely to perceive strong organizational backing for green practices. Although direct studies connecting PGOS to overall employee satisfaction are scarce, existing research suggests that GTL has a positive impact on job satisfaction. For example, a study in the hospitality sector found that GTL improves job satisfaction, ultimately decreasing employees’ likelihood of leaving the organization. This implies that leadership focused on environmental values can create a more supportive workplace, which may contribute to greater employee satisfaction (Oktaysoy et al., 2025). In addition, based on the norm of reciprocity, employees with higher PGOS levels were found to be more committed and satisfied (Amrutha & Geetha, 2021; Rhoades & Eisenberger, 2002), which justifies why PGOS preceded J.Satis in order when testing the sequential mediation between ETL → ER.

From a managerial perspective, this research offers actionable insights for hospitality organizations, particularly in developing economies, where high turnover rates remain a challenge (Abdou et al., 2022). Understanding how GTL fosters employee satisfaction and enhances PGOS can help organizations design more effective retention strategies that align with both workforce stability and sustainability goals (Septiani & Herminingsih, 2025). By embedding green policies and eco-friendly initiatives into organizational strategies, businesses can increase employee engagement and loyalty, leading to long-term workforce stability. Additionally, hospitality firms should train managers in GTL practices to inspire and motivate employees, fostering a green organizational culture that enhances job satisfaction and retention (Gürlek & Koseoglu, 2021). Finally, organizations should enhance PGOS through recognition programs, training, and career development opportunities to reinforce employees’ sense of value and belonging (Elshaer et al., 2022; Karatepe et al., 2022).

Moreover, the findings suggest that GTL significantly enhances ER through two key mediators: GPOS and J.Satis. These results highlight that the effect of this leadership direction is maximized when employees perceive strong organizational support and experience satisfaction in their roles. From a practical perspective, organizations should invest in leadership training to equip leaders with the skills to effectively apply GTL policies and practices, enhancing employees’ perceptions of organizational support and job satisfaction, ultimately leading to enhanced employee retention. Additionally, HR policies should encourage a green-supportive culture and reinforce job satisfaction through recognition and development opportunities.

7. Limitations and Future Research

Despite the contributions introduced by the current paper, some limitations can be recognized. First, despite the study investigating the influence of CMV, it employed a self-reported data method; future studies can employ a longitudinal approach or collect data from multiple sources to further mitigate this issue. Second, the sample collected was restricted to a specific context, which may limit the generalizability of the results. Replicating the study model across other contexts can improve its external validity. Third, one more possible limitation of this paper lies in its cross-sectional design approach, which limits the ability to create definitive causal inferences. While the results suggested that PGOS positively impacts employee retention, it is also plausible that firms with higher levels of retention rates are more inclined to capitalize on green initiatives and supportive practices, thereby increasing employees’ perceptions of PGOS. Future research is encouraged to adopt longitudinal designs to better develop the directionality of these intersections and rule out the likelihood of reverse causation. Finally, while the study employed employees’ satisfaction and green perceived organizational support (GPOS) as mediators, other mediators (e.g., green work engagement; organizational support and commitment) can be acknowledged. Future research opportunities can explore these additional avenues to offer a more comprehensive understanding of the interactions between GTL and job retention.