Transformational and Transactional Leadership: Their Impact on Sustainable Practices and Green Innovation in Organizations

Abstract

Various global actors increasingly focus on sustainability and protecting the environment and natural resources. Company leaders play an essential role in this process, whose vision is directly related to the external environment and internal factors, and the future must inevitably be on the path of sustainability. Objectives and Approach: This study aims to perform a Systematic Literature Review (SLR) to assess the influence of transformational and transactional leadership on adopting sustainable and green practices in enterprises. A Scopus-based search for the keywords "Transactional Leadership" AND "Transformational Leadership" AND "sustainable" OR "green" yielded 35 articles addressing this topic, which will be thoroughly reviewed to assess the impact of different leadership styles on sustainable practices. Results: This study examines the effects of transformational leadership, which is primarily concerned with inspiring and motivating individuals and groups to make long-term positive changes, and transactional leadership, which is closely related to implementing sustainability through rewards and clear accountability structures.Implications: This study intends to contribute to a better understanding of the impact of these two leadership styles by developing a framework for describing how leadership can shape and benefit sustainable practices and green innovation in modern enterprises.