EFFECT OF GREEN MANAGEMENT AND GREEN INNOVATION ON SUSTAINABLE BANK PERFORMANCE IN NIGERIA: MEDIATING ROLE OF GREEN LEADERSHIP

Abstract

This study investigates the effect of Green Management and Green Innovation on the Sustainable Performance of Commercial Banks in Nigeria, with Green Leadership examined as a mediating variable within the Nigerian Banking Context. Anchored in Stakeholder Theory and the Resource-Based View (RBV), the study employs a quantitative research design using survey data collected from 150 bank managers of five major Tier-One banks working in commercial banks within Kano Metropolis, Nigeria across operations, risk management, IT, marketing, and general administration. The sample size is two hundred (108) of the total population and was determined using the Krejcie and Morgan’s (1970) formula. 5% of 108 was added to give the total of 114 samples used in the study. Purposive sampling technique was adopted to select respondents for the study. The total sample of 114 valid responses analyzed via Partial Least Squares Structural Equation Modeling (PLS-SEM) with the aid of SmartPLS 4. The findings of the study reveal that both green management and innovation positively influence sustainable performance, with green innovation having the strongest direct effect. Additionally, green leadership significantly mediates the relationships between both predictors and sustainable performance, confirming its strategic role in translating green practices into measurable sustainability outcomes. Theoretically, the study extends the application of stakeholder and resource-based perspectives in green banking literature, while empirically providing evidence from an under-researched emerging market. The study concludes by highlighting the need for stronger investments in green innovation and leadership development to drive sustainable banking outcomes. These findings offer actionable insights for policymakers, bank executives, and sustainability strategists seeking to embed environmental responsibility within institutional performance frameworks. It also, enriches our understanding of how environmental capabilities are developed and operationalized within financial institutions, especially in emerging markets such as Nigeria.