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Impact of perceived organizational The

relationship
support and green between CSR
and OP
transformational leadership on
sustainable organizational 1373
performance: a SEM approach Received 19 September 2020
Revised 22 December 2020
2 February 2021
Manita Kusi 25 March 2021
25 May 2021
School of Management, Wuhan University of Technology, Wuhan, China Accepted 1 July 2021
Fuqiang Zhao
Department of Management, Wuhan University of Technology, Wuhan, China, and
Dinesh Sukamani
Department of Civil Engineering, Kathmandu University, Dhulikhel, Nepal

Abstract
Purpose – The study aims to scrutinize the concomitant associations between corporate social responsibility
(CSR), perceived organizational support (POS), green transformational leadership (GTL) and organizational
performance (OP). This paper aims to explore the role of intervening variable to measure the strength on the
relationship between CSR and OP.
Design/methodology/approach – This research administered a survey through self-administered
questionnaire among the staff-level employees of construction companies of Nepal. Fully filled 305
responses from the participants were analyzed using a structural equation model. The study used self-
structured questionnaire as research tool and face-to-face meetings as data collection technique.
Findings – The research indicates that POS showed competitive partial mediation relation between CSR
and OP. Besides, a novel exploration of the moderation effect of GTL displays a supportive role in
harmonizing the CSR with organizational support to achieve better OP. This study enriches empirical
evidence to understand the linkage between CSR and POS in staff-level employees in the construction area.
Moreover, the research shed a light on GTL ’s moderating influence on the mediated model of CSR, POS
and OP.
Research limitations/implications – Although the results of the study add to the current knowledge base,
several limitations highlight avenues for future research. Future studies can explore the relationship in other
study areas with added evidence on a similar result with different analysis patterns and study sample. The
research model studied in the context of Nepal creating evidence as a representation for the developing
countries.
Originality/value – The intervening role of POS and GTL gives new insight for the research-based
organization based social behavior and performance
Keywords Corporate social responsibility, Green transformational leadership,
Perceived organizational support
Paper type Research paper

1. Introduction
Corporate social responsibility (CSR) is a voluntary function of the organization done to
activate economic, social and environmental sustainability. CSR is an organization
accomplishing duty to a variety of stakeholders including shareholders, customers, staff,
Business Process Management
local communities and the environment for all company operation procedures (Christensen Journal
et al., 2014). The responsibility includes economic, legal, political and ethical perspectives in Vol. 27 No. 5, 2021
pp. 1373-1390
which the outer environment believes firms to conduct. Previous studies on CSR have © Emerald Publishing Limited
1463-7154
gathered a core theme of knowledge based on the essence of CSR and the influence of CSR on DOI 10.1108/BPMJ-09-2020-0419
BPMJ the stakeholders and CSR response to the organization (Kim et al., 2018). Focused study on the
27,5 environmental issue in the era has emerged the interest in the importance of CSR has been
emphasized.
Although many research works explore the significant relation of CSR in an
organization (Alrowwad et al., 2016; Hur et al., 2019; Kim et al., 2018; Loosemore and
Lim, 2017), relatively little attention has been paid to the individual level and underlying
mechanism of CSR (Mehralian et al., 2016). CSR initiatives have piqued the interest of
1374 practitioners and academics, the motivations that drive those behaviors have gotten
limited attention in the academic literature–especially from an empirical perspective
(Babiak and Trendafilova, 2011). As a result, micro research, which probes the employee’s
perception, attitudes and behaviors, has been less prioritized (Aguinis and Glavas, 2012;
Gond et al., 2017).
Similarly, in the trend on new research of CSR, for instance, a study explored CSR in
international companies in the global context (Ye et al., 2020). Another study discovered a role
of CSR in the better financial performance of food industries in the Asian context (Tsai and
Mutuc, 2020), views and motives for CSR practices in the Ghanaian banking sector (Ofori
et al., 2014). To the addition on the future literature, this study took a step to examine the role
of CSR in a construction firm’s performance taking an example of a developing country like
Nepal. A handbook of Oxford on CSR mentioned the paucity of an international study that
examines the existence and reach of CSR in developing countries relative to developed
countries (Visser, 2009). Visser (2009) added there is a lot of traction in the Western
understanding and application of CSR, but the developing nations are struggling to fully
grasp the CSR concept. Moreover, the developing country still focuses on the major internal
changes for its better organizational output rather than a social and emotional perspective. In
context of Nepal, a study revealed there is a slow intensity of CSR. The government-level of
working along with the employee initiatives are very inactive in implementing labor laws
(Adhikari, 2012). Following the statement, this study tried to explore further CSR in context of
Nepal covering the construction industry.
Researcher from prior studies have added the positive significance of CSR and
organizational performance (OP) (Albuquerque et al., 2019; Visser, 2009; Wang and Sarkis,
2017; Yu and Choi, 2014). Evidently another study in Ghanian banks concluded that despite
the fact, there is a positive association between CSR policies and financial performance, the
financial performance of banks in Ghana is mostly determined by other control factors such
as growth, origin and debt ratio. While a significant negative association was discovered
between CSR and firm financial performance in Brazil (Crisostomo et al., 2011). Moreover,
studies have been undertaken to investigate the direct effect of CSR on a firm’s financial
results, and this direct relationship seems to be shaky and unreliable.
Second, a structural equation modeling (SEM) study used in the Pakistani stock exchange
company attempted intervening role to look at the impact of brand image and consumer
loyalty on the relationship between CSR and financial results concluding significant partial
mediation (Ali et al., 2020). Though the intervening variable to better understand the relation
between CSR and OP is still limited (Yuen et al., 2018). Further, green effects and
organizational theories related studies are fewer in research study to explore the relation of
CSR to organizational outcome. Green transformational leadership (GTL) is one of the major
variables that contribute to insight into the employee’s perception of organizational support
which still lacks to be studied with CSR and OP relation (Singh et al., 2020). Additionally, this
study tried to explore the novel relation to understand the moderating impact on the
mediated model.
To complement the above-mentioned research gaps, in this paper, the study tried to
explore the mechanism of CSR at individual level, used the organizational support theories to
explore the relation of perceived organizational support (POS). Further, GTL approach
affects the OP concerning social responsibility. More specifically, this study focus on GTL The
POS which is known as employee’s psychological attachment that influences the better relationship
organizational outcome (Lamm et al., 2015; Manzoor et al., 2019). Specifically, we expect that
CSR positively influence POS and moderating role of GTL.
between CSR
and OP

2. Theoretical background and hypotheses

2.1 Corporate social responsibility (CSR) and organizational performance (OP) 1375
Social responsibility is nebulous and concerned to both internal stakeholders including
employees and external stakeholders as well as suppliers, government and non-government
organizations (Allen et al., 2017). CSR considers the idea of business as a part of society and
manages its operation in ways that allow it to co-exist with various stakeholders of the
society. CSR definition refers to the policies and actions of the organization; however, such
policies are influenced and implemented by the actors at multiple actions including
institutional, organizational and individual levels (Allen et al., 2017). A considerable response
to social pressure, environmental concern and stakeholders’ demands characterize the
dimensions of CSR. CSR can be a catalyst for the long run organizational benefits and also for
the corporate responsibility build-up for the society (Huang and Lien, 2012). Focusing solely
on the objective of increasing corporate wealth is starting to vanish against the broader
concept of organizational success as a corporation today is more concerned about gaining
sustainable growth.
In the context of Nepal, a study revealed that there is a slow intensity of CSR. The
government-level of working along with the employee initiatives are very inactive in
implementing labor laws (Adhikari, 2012). Following the statement, this study tried to
explore further CSR in context of the construction industry. OP is an essential concern of
study in business management and is a key indicator of the organizational efficacy
evaluation. Specifically, previous studies have stated that CSR has positive significance in
organizational outcomes by promoting the organizational beneficial aspects (Farooq et al.,
2014; Latif et al., 2020; Mehralian et al., 2016). For instance, a study in Taiwan architecture and
construction companies has explored the positive association of CSR to OP (Allen et al., 2017;
Huang and Lien, 2012). Another study in Ghanaian banks concluded that well adopted and
implemented, CSR can pay its way by contributing toward firm performance. It adds giving
priority to CSR practices directly influencing the firm performance (Ofori et al., 2014). The
relation between CSR and OP is one of the strongest study variables for sustainable
organizational betterment. The literature provides more efficiency to conduct further study
on this relation.
Prior research (Jin and Drozdenko 2010), suggest that measurement of the fulfillment of
various objectives of the organizational goal, there are different tools available. Among all,
balance scorecard (BSC) is one of the essential performance measurement and management
tools that is widely known and used (Mehralian et al., 2016). This includes both financial and
non-financial measurements. The BSC is a holistic approach toward performance
measurement and management covering all financial, external stakeholders, internal
processes and learning as well as growth. This BSC framework allows the organization to
monitor and track all the financial as well as non-financial performance.
According to Mehralian et al. (2016), previous studies only focused on and explored the
relation between CSR and financial performance. Though both financial and non-financial in
organizational achievement are equally important. As a result of exploring the association of
the CSR and OP relation, some of the most recent studies suggest a positive association
between the variables (Frynas and Stephens, 2015; Mehralian et al., 2016). Hence, this study
also has considered both the financial and non-financial performance study on basis of
previous study suggestions. Accordingly, the following hypothesis is posited:
BPMJ H1. Corporate social responsibility has a positive impact on organizational performance
27,5
2.2 CSR and POS
“Perceived organizational support has been defined as employees’ global beliefs concerning
the extent to which the organization values, their contributions and cares about their well-
being” The relationship between POS and affective commitment is also well documented.
1376 Numerous studies have shown that POS has positive consequences on both employees and
organizations (Caesens et al., 2016; Stinglhamber et al., 2015). POS measures how the
employee’s perception of how much the companies’ employer cares about them on the micro-
level. POS represents generalized beliefs made by the employee’s concern on their
contribution from the employers’ side (Lamm et al., 2015). Prior research studies have
found a significant positive relation between CSR and POS (Ditlev-Simonsen, 2015; Glavas,
2016). Further to understand the relation of CSR and POS with the outcome variable of OP
this study has posited the following hypotheses.
H2. Corporate social responsibility has a positive impact on perceived organizational
support

2.3 POS and OP

In the perspective of organizational support theory, employees develop an exchange
relationship with the organization that directly influences the worker’s behavior and their
attitudes (Du et al., 2018; Eisenberger et al., 1986). Organizational support in fair treatment
and appreciation of the employee’s work influence positive consequences like high
commitment, devotion and performance. The POS survey may be a common diagnostic
instrument for measuring the positive attitudes of employees and forecasting their reactions
to extra-role performance (Gyekye and Salminen, 2009). While OP is considered as a
measurement of achievement of the organizational goal with the active participation of
employees, it is one of the major measures for organizational development (Gupta and
Sharma, 2016). Therefore, POS is considered a major element to contribute to the positive
output of the organization (Imran and Aldaas, 2020). POS fosters individuals’ performance by
collaborating and identifying new ways of working resulting in high performance.
Thus, once the organization ensures being able to mindset on the perception of
organizational support it will have higher performance (Eisenberger et al., 1986;
Stinglhamber et al., 2015). A significant positive result on the relation between POS and
OP has been proven by many prior types of research (Imran and Aldaas, 2020; Karatepe and
Aga, 2016). Similarly, a study in commercial banks in southeast Nigeria concluded a
significant positive relationship with employee performance. The study further elaborated,
management of the commercial firms should show genuine love and support not only as a job
relational matter but also in the private endeavors of the employee (Ikon and Ogochukwu,
2019). A study in SMEs of Oman showed positive linkage and harmony between employee’s
perceived support and job performance (Imran and Aldaas, 2020). Based on the above
literature following hypothesis is developed.
H3. Perceived organizational support has a positive impact on organizational
performance

2.4 Mediation relation

The prior finding is largely inconclusive about CSR and OP outcome reporting positive,
neutral and even negative association. Some researcher tried to clarify such association of
CSR to organizations’ performance while some researchers also have explored using the
mediation relation to cope with the inconsistent relation (Choi and Yu, 2014). Moreover, the The
intervening variables in the CSR-OP relation have not been studied so far (Latif et al., 2020; relationship
Yuen et al., 2018). Yuen et al. (2018), have used service quality as a moderating variable to
clarify the CSR-OP relation while Latif et al. (2020), have proposed team outcome to explore
between CSR
essential mediators in this relationship. Following the literature, this study proposes that POS and OP
as a mediating variable understands consequences on the relation between CSR and OP (see
Figure 1).
Likewise, in line with the social identity theory, the existence of organizational support 1377
might influence the employees to develop a positive identity and emotional attachment to
their organization since POS makes them realize the care and concern of their well-being
through their firms (Hur et al., 2019). Thus, the interceding role of POS may trigger a stronger
motivation amongst the employees to improve the OP and their working environment. POS
would also increase the commitment of employees by fulfilling desires of approval and
affiliation resulting in role status into social identity. To conclude the relation, this study
posited the following hypothesis:
H4. POS mediates the relation of CSR and OP

2.5 Moderating role of green transformational leadership

Higher OP is proportionate to transformational leadership, but the mediation or moderation
relation between the construct still needs to be explored and is an area of special interest to the
researchers (Singh et al., 2020). With increased environmental pressure, business
organizations are adopting green practices with their customers and suppliers to boost
their environmental performance by reducing the environmental effect of their goods services
and operations (Abdallah and Al-Ghwayeen, 2019). In this study, GTL is a leadership
behavior wherein the key goal of leadership is to provide clear vision, inspiration and
motivation to the employees and support their developmental needs toward achievement.
Previous studies have mentioned the essence for the firms to practice GTL as it inspires and
persuade the employees to exhibit green job behavior in the green performance outcomes
(Singh et al., 2020). This study considered GTL for the reason that it has an idealized influence
(Zhang et al., 2018), provides a huge source of motivation and also uses intellectual
stimulation (Khan et al., 2018). Exceptional to the other study, this research tried to
investigate the new moderation role of transformational leadership in the relationship
between CSR and POS. On purpose, the following hypothesis is posited:

Green Transformational Corporate Social

Leadership Responsibility

H2
H1
H5

Organizational
Performance

H4
H3
Perceived Figure 1.
Organizational Support Conceptual Figure
BPMJ H5. GTL moderates the mediating effect of POS on the relationship between CSR and OP
27,5 such that the effect of CSR on OP is stronger when GTL is high than when it is low

3. Research methodology
3.1 Constructs and measurement items
1378 The constructs and measurement items are shown in Table 1.

3.2 Questionnaire validation

The initial questionnaire was provided to ten experts for all specialized academics and
managers from the field of “A” class construction management industries. The procedure
benefitted the study with the validity of the questionnaire as well as clarity,
comprehensiveness and relevance of the questions. Further, as per the suggestions of the
expert, some of the questions were modified for clear understanding (see Table 1).

3.3 Sample and data collection

This research focuses on the construction companies of Nepal as the primary population. The
industry was chosen for this research because the implementation of the social responsibility
practices is industry dependent and the construction industry is expected to implement and

Constructs Measurement items

Corporate social responsibility (CSR); Carroll and
Shabana (2010), Yuen et al. (2018)
Organizational performance (OP); Mehralian et al.
(2016), Susa Vugec et al. (2020)
Perceived organizational support (POS); Carmeli et al.
(2007), Lamm et al. (2015), Podsakoff et al. (1996)
Green transformational leadership (GTL); Chen and
Chang (2013), Podsakoff et al. (1996), Singh et al. (2020)
Table 1.
Construct and
measures
CSR1: Provides training and education to develop
employees skillsets
CSR2: Communicates complete and accurate
information about the service to the customer
CSR3: Donates to a charitable organization
CSR4: Applies a high standard for discloser,
accounting, auditing, social and environmental
editing
OP1: Financial perspective
OP2: The customer perspective
OP3: Internal process perspective
OP4: Learning and growth perspective
POS1: My success and innovation are recognized
and celebrated
POS2: Have the information I need to do my job
effectively
POS3: Have flexibility in my work schedule to meet
both my business objectives and my commitments
POS4: I’m empowered to make necessary decisions
when management is absent
GTL1: Provides a clear environmental vision for the
project members to follow
GTL2: Encourages the project members to achieve
the environmental goals
GTL3: Considering environmental beliefs of the
project members
GTL4: Stimulates the project members to think
about green ideas
GTL5: Inspires the project members with the
environmental plans
practice social responsibility through their level. Therefore, it provides a suitable context for The
this research. relationship
The data for this study were gathered using a questionnaire that was distributed to 20
different construction companies throughout the country. They are geographically diverse
between CSR
and operate to provide service in a different part of the country. Out of 500 sampling tool and OP
distribution, a sample of 305 employees from construction companies in Nepal fully
participated in this survey. A cross-sectional survey was conducted with employees of
construction companies and a convenience sampling technique was utilized. Employees from 1379
different departments who were readily accessible and willing to participate in this research
comprised the sample for the study. Table 2 displays the socio-demographical status of the
participants.

3.4 Statistical approach

This study uses a SEM approach based on Smart PLS and AMOS 21.0 to study the causal
relation and test hypothesis among the observed and latent variables in the proposed study
model. SEM uses two different models: the measurement model and the structure model. A
measurement model explains the relation between the observed and unobserved variables
while a structure model identifies the indirect influence changes in other latent variables by
specifying which latent variables directly or indirectly influence changes in other latent
variables in the model (Alrowwad et al., 2016). Moreover, the structural equation modeling
process consisted of two components: validating the measurement model and fitting the
structure model. Validating the measurement model is calculated by confirmatory factor
analysis (CFA) and using path analysis with latent variables confirms the structural fit (Hair
et al., 2010).

3.5 Measures
The research utilized multi-item scales with a five Likert scale to measure the study variables
(strongly agree 5, strongly disagree 1). The preference of five points Likert scale over the
seven is that the five-point scale appears to be less confusing and to increase response rate
and reliable data (Revilla et al., 2014). The study figured the internal consistency of the
variables by utilizing Cronbach’s alpha coefficients.

Title Description Number of respondents Percent (%)

Age Below 20 21 6.89

21–25 39 12.79
26–30 89 29.18
30 above 156 51.15
Job experience 0–3 years 82 26.89
4–6 years 83 27.21
7–9 years 39 12.80
10 above 101 33.10
Education Undergraduate 92 30.16
Graduate 35 11.48
Postgraduate 178 58.36
Organization type Government 172 56.39
Private 85 27.87 Table 2.
NGO/INGOS 12 3.93 Socio-demography of
Community 36 11.80 participants
BPMJ 3.6 Control variables
27,5 Age, educational level, experience were utilized to appropriately control for factors that could
affect the dependent variable.

3.7 Data analysis

The data analysis procedure followed using statistics SPSS 21.0. The demographic features
of the survey participants were calculated using frequency analysis and the study performed
1380 correlation analysis. Besides, normal distribution was checked calculating the mean, SD,
skewness and kurtosis value of the data. Power analysis and f2, q2 values were analyzed
using smart PLS. Next, SEM was conducted using AMOS 21.0. The advantage of this model
is that the former multiple regression analysis methods can simultaneously analyze the direct
and indirect paths among the variables (Kim et al., 2018). The research used a two-step
approach, measurement and structural model. An acceptable measurement model will lead to
a structural measurement of the study model. The process evaluates the relative goodness of
fit index, comparative fit index (CFI), Tucker–Lewis index (TLI), root mean square error of
approximation (RMSEA) of the model, which is the degree to how much hypothesis model
corresponds to the actual data.

4. Result
4.1 Descriptive statistics
The normality of distribution of the data, their mean, SD, skewness and kurtosis of each value
were calculated. Further, the researcher attempted a common method bias test where we
compared the unconstrained common method factor to the fully constrained common method
factor model. In that case, the chi-square test came out to have a significant error, i.e. the
difference in DF and p-value; there is a significant shared variance, which led to retain the
common latent factor (CLF) (Serrano Archimi et al., 2018). Moreover, correlation analysis
concluded the correlations among the study variables of the research. Table 3 demonstrates the
correlation matrix, which shows that the correlation between the individual variables has not to
value above 0.90 or the correlation was below the limit level of 0.70 as a limit level (Farrell, 2010).
This study employed average validity using two methods-comparing the root square
mean values of AVEs with the corresponding coefficients and examining HTMT. The values
of AVEs for all the variables are illustrated in Table 3. This means that the latent variable of
this study had a high convergent validity since all the mentioned variables exceed 0.50 value
as recommended (Fornell and Larcker, 1981). Using the HTMT as a criterion involves
comparing it to a predefined threshold. If the value of the HTMT is higher than this threshold,
one can conclude that there is a lack of discriminant validity (Henseler, 2015) (see Table 4).

4.2 Measurement model

The study conducted a CFA to check the validity of the measurement model finding the
adequate fit index. To test the discriminant validity of the major four variables, CFA for all 17
items that compose all variables was performed. The average variance extracted (AVE) value

Mean SD CR AVE MSV Max R(H) GRTL OP CSR POS

GRTL 3.66 0.465 0.845 0.522 0.010 0.845 0.722

OP 2.59 0.929 0.897 0.685 0.044 0.911 0.100 0.828
Table 3. CSR 2.15 0.621 0.885 0.661 0.220 0.909 0.096 0.137 0.813
Construct reliability, POS 2.59 0.929 0.857 0.600 0.220 0.861 0.060 0.210 0.469 0.775
Convergent and Note(s): Italic value on the diagonal of the correlation matrix is the square root of AVE (discriminant validity).
Discriminant validity CR: construct reliability; AVE: average variance extracted
was above 0.5 that represents the existence of convergent validity. Our minimum AVE value is The
0.522 as shown in Table 3 which meets the criteria suggested by pioneer (Fornell and Larcker, relationship
1981). The four-factor model showed a very adequate fit to the observed data: χ 2 5 279.366,
DF 5 113; CFI 5 0.939; TLI 5 0.927; RMSEA 5 0.070, Standardized root mean square residual
between CSR
(RMR) 5 0.0505 and PCLOSE 5 0.001. These fit indices jointly claim that the total performance and OP
of the model structure is sufficient (Hair et al., 2019; Sukamani and Wang, 2020). The fit indices
of our hypothesized model were strong enough to accept. The research tried to explain the
association among the research variable from the structural equation model. The model has a 1381
sequential mediating structure, which consists of CSR-POS- OP paths.

4.3 CMB
Further, the researcher attempted a common method bias test where the method used a CLF
to capture common variance among all observed variables in the model. Then chi-square
value difference is compared with the unconstrained common method factor to the fully
constrained common method factor model. In that case, the chi-square test came out to have a
significant error, i.e. the difference in DF and p-value; there is a significant shared variance,
which led to retain the CLF. Either there are large differences (like greater than 0.200) then
you will want to retain the CLF as you or impute composites from factor scores (Huang et al.,
2019). For the data of this study, the value appeared to have a significant difference so the
CLF imputed data were used for further analysis.

4.4 Power analysis

To ensure process efficiency concerning sample size implications, power analysis in the PLS
model is necessary. As a prior study used in their work, this study also used G-power (3.0.10)
tools to verify model power analysis (Hu and Bentler, 1998). Implementation of this program at a
5% significance level, with an effective size of 0.629 as the maximum path coefficient along with 3
model predictors, we achieved 100% with a sample size of 60, as shown in Figure 2. It is therefore
obvious that the sample size used in the analysis is sufficient to obtain adequate control.

CSR OP POS GTL

CSR
OP 0.112
POS 0.479 0.246 Table 4.
GTL 0.128 0.127 0.082 HTMT criterion to
Note(s): The heterotrait-monotrait ratio (HTMT) values of the given table expose the correlations between the assess’ discriminant
model’s constructs where the HTMT value of less than 0.85 indicates discriminant validity validity

1.200
Power(1-β err prob)

1.000

0.800

0.600

0.400

0.200

0.000
10 20 30 40 50 60 70 80 90 100

Number of Samples
Figure 2.
Note(s): F test -Linear multiple regression:Fixed model, R deviation from zero number of predictors = 3, α err Power analysis
prob = 0.05, effective size f  = 0.629
BPMJ 4.5 Analysis and validity of structural model and hypothesis testing
27,5 Path analysis was run to test the direct and indirect effects of CSR and OP relation via POS.
Here, path coefficient shows the conventional change of the endogenous construct with a unit
change in the predictor construct and beta value is an analysis between all latent variables;
greater the beta value stronger or greater effect of exogenous (predictor) variable on
endogenous (dependent variable). Prior to the estimate output, the results of the fit indices for
the first run of the sample were checked and did suggest an acceptable fit of the model. The
1382 entire structural model was analyzed instantaneously based on the measurement model with
indicators value; χ 2 5 185.74, degree of freedom (DF) 5 51, CFI 5 0.937, GFI 5 0.909,
TLI 5 0.919, PCLOSE 5 0.00 and RMSEA 5 0.09, all the value were above the
threshold value.
The study further calculated value of the coefficient of determination (R2), where a value
greater than or equal to 0.26, 0.13–0.26, and 0.13 is considered to be large range, medium
range and small range respectively (Cohen, 1988). The R2 value of the endogenous latent
variable, POS and OP valued medium range but important, was 0.23 and 0.228, respectively.
Similarly, the effective size f2 is a measurement of the crash of every exogenous construct on
the endogenous construct in the model. The cut-off value of f2 is 0.02 for small, 0.15 for
medium and 0.35 for large structural level (Bouraoui et al., 2019; Hu and Bentler, 1998). In
Table 5, all the f2 values of the study variables met the cutoff value and showed moderate
effect. Finally, Q2 is predictive relevance of the structural model by implementation of Stone-
Geisser’ which was calculated by using the blindfolding process, where all Q2 values should
be greater than zero for the relevance of corresponding constructs. The table below shows
that predictive relevance q2 value was in good cutoff range.
As in the proposed model, to test the mediation hypothesis, which suggested that POS
mediate the relationship between CSR and OP, the study performed a bootstrapping analysis
with a sample of 5000. This method avoids problems pertinent to the asymmetric and non-
normal sampling distribution that is often entrenched in mediating effects (Shrout and
Bolger, 2002). A confidence interval (CI) that does not include zero value indicates the
significance of the indirect effect. Following the statement, the study also used a 95% bias-
correlated CI. The CI for the indirect effect of CSR on OP through POS does not include zero.
In CSR→POS→OP relation, POS mediate the direct relation between CSR and OP. It is
evident that the lower and upper limits of the CIs of CSR→POS→OP path does not contain
zero. In addition, the mediating role of POS in between the relation of CSR and OP
(organizational performance) signifies a partial mediation. The result explored a significant
mediating relation. CSR and OP relation yield the direct effect value is negative (β 5 0.353,
p < 0.001) while CSR→POS→OP relation β value (0.164) with the mediating variable POS is
positive (MacKinnon et al., 2007). In this vein, competitive partial mediation exists in this
study model. Hence, the result explained that the intervening relation of POS in CSR and OP
relation showed competitive partial mediation.

Predictor Endogenous Effective size(f2) Predictive relevance(q2)

CSR OP 0.068 0.540

POS OP 0.128 0.471
GTL POS 0.003 0.339
CSR POS 0.283 0.556
Table 5. Note(s): The cut-off value of f2 is 0.02 for small, 0.15 for medium and 0.35 for large structural level (Alsaad
Evaluating value of et al., 2017; Creswel and Creswell, 2017; Shanmugapriya and Subramanian, 2016). The q2 value should be
f2, q2 greater than zero for the relevance of the corresponding construct (Tenenhaus et al., 2005)
5. Discussion and implementation The
5.1 Discussion relationship
Despite the ongoing research in CSR focusing on the individual as well as the organizational
level of study, this study tried to understand the relation between CSR and OP. This study
between CSR
added a positive significant relation result between CSR and OP using the data from the and OP
construction companies of Nepal. This result is consistent with the conclusion reached by
various scholars. For instance, Alrowwad et al. (2016), revealed a significant positive relation
between CSR and OP in pharmaceutical companies while a similar result was studied in 1383
construction firms (Loosemore and Lim, 2017) supporting the first hypothesis H1.
Exploratory research (La Rosa et al., 2017) obtained the highest significantly positive
relationship between CSR and employee performance. This study result is relevant evidence
for our direct hypothesis.
Second, based on the previously proved results, this study also explored the relation
between CSR and POS to add evidence for future studies. As expected the analysis yield a
positive significant effect that matched the previous study (Caesens et al., 2016; Glavas, 2016;
Stinglhamber et al., 2015) supporting the second hypothesis H2. A survey conducted in the
tourism and hospitality industries in southwest China has emphasized the importance of
CSR, POS to enhance the employees’ involvement and improve productivity (Gao, 2014). It
concludes that CSR is a major impact factor for POS, suggesting that if managers invest more
in CSR operations, the more organizational assistance workers are perceived to get (see
Figure 3).
Moreover, POS further fosters individuals’ performance by collaborating and identifying
new ways of work resulting in high performance. Organizational support might be one of the
important aspects to advance the employee’s commitment to achieving better OP. This study
tried to explore relations based on previous evidence and posited the third hypothesis. Hence,
the result given in Table 6 illustrates that POS has a significant and positive effect on OP. The
results are in line with past literature (Imran and Aldaas, 2020; Karatepe and Aga, 2016).
Henceforth, the third hypothesis H3 is also supported.
Another purpose of this study was to examine the mediating role of POS in the
relationship of CSR and OP. The result of the mediating effect of POS contributes to the earlier
study knowledge that has not yet discovered such kind of relation. Excitingly the result
explores a positive mediating relation. With the result, the β value of CSR→OP relation is
negative ( 0.353) while CSR→POS→OP relation β value (0.164) is positive (MacKinnon et al.,
2007). The intervening relation of POS in CSR and OP relation showed competitive partial
mediation. A past study with regression analysis on the private and public companies of

Green Transformational Corporate Social

Leadership Responsibility
H1, β = 0.353
Sig.at 0.0001
6

H5
28

,β
0.

01

Sig =0
=

00

.23
,β

.at
0.

0 .0 8
H2

at

00
g.

1
Si

Organizational
Performance
9
0.62
β=
Perceived H3 , 01
0.00
Organizational Support .at Figure 3.
Sig
SEM results of
H4, β = 0.164 full model
Sig.at 0.0001
BPMJ Tunisia yield a significant relationship on POS mediates the relationship between CSR and
27,5 affective commitment (Bouraoui et al., 2019). An indirect relation of CSR to OP through the
mediating effect of total quality management was explored in the pharmaceutical company of
Iran (Mehralian et al., 2016). Glavas (2016) explored the weak mediating effect of POS on CSR
with employee commitment resulting in weak OP. In contrast, this study provided a strong
significant positive mediating role of POS. Contrary to the prior research arguments, this
study has provided the theoretical evidence supporting our hypothesis 4. To the best of our
1384 knowledge, this study is the first empirical evidence in the mediating role of POS in a relation
to CSR and OP.
Further, the innovation analysis on the moderating role of GTL plays a major role to add
novelty in the research of CSR-related research study. To the best of our knowledge, the
moderating role of GTL concerning CSR to POS is not studied so far. As predicted, the result
yields a significant positive result with the values of interaction (β 5 0.238, p < 0.001). Based
on the theoretical support of previous studies by Khan et al. (2018), and Singh et al. (2020), the
final hypothesis H5 is supported with the following results. The graphical presentation of
moderation relation as shown in Figure 4 showed that GTL strengthens the positive
relationship between CSR and POS.
The moderating effect of GTL on the relation between CSR and POS is found to be significant.
As hypothesized, a significant moderation relationship existed, whereby a higher level of
transformational leadership reduced the positive associations between CSR and POS. Then
graphical presentation in the figure displays the relationships between CSR and POS as

Hypothesis Relationship Estimate SE p-value Conclusion

H1 CSR→OP 0.353 0.057 0.000*** Supported

H2 CSR→POS 0.286 0.029 0.000*** Supported
H3 POS→OP 0.629 0.092 0.000*** Supported
H4 CSR→POS→OP 0.164 0.040 0.000*** Supported
H5 CSR*GTL→POS 0.238 0.031 0.000*** Supported
Table 6. Note(s): Corporate social responsibility (CSR), perceived organizational support (POS), organizational
Hypotheses performance (OP), green transformational leadership (GTL). Standard Error-S.E., Significance level, p 5 0.05
substantiation level, p 5 0.01 level**, p 5 0.001 level***

4.5

3.5 y = 1.144x + 1.255 Moderator

POS

Low GTL
3
y = 3.029 High GTL
2.5 Linear (Low GTL)
Linear (High GTL)
2

Figure 4. 1.5
Interaction effect of
GTL on CSR and POS 1
Low CSR High CSR
moderated by GTL. These results demonstrate the importance of GTL in improvising the effect of The
CSR and POS. relationship
between CSR
5.2 Theoretical implications and OP
This result shed the light on an important issue for researchers. First, our study explored
novel empirical evidence on the moderating role of GTL on the mediating relation of POS to
CSR and OP. This research contributes to a better understanding of POS and GTL relations 1385
on OP in a construction firm. The study focused on the construction companies of developing
countries like Nepal using SEM. Specifically, this study assists to fill the gap on the POS as an
intervening variable to crystalize the relation between CSR and OP as suggested by prior
research (Choi and Yu, 2014; Latif et al., 2020).
This study adds to the CSR research by elucidating some of the intricacies that may
underlie the research’s conflicting findings on the links between CSR activities and OP.The
findings of this study make a remarkable contribution to fulfill the literature gap. The study
explored the competitive partial mediation role of POS on CSR-OP relation as the analysis
resulted in a negative beta value of CSR-OP and positive beta value for CSR-POS-OP relation.
This result indicates that an organization should assure more to provide organizational
support so that the employees feel they are prioritized and cared for from a higher level.
Consideration of CSR as valuable resource by the organization is must on contributing to a
sustainable competitive advantage by improving OP. CSR practices are beneficial for the
improvement of employee’s social responsibility with organizational support to enhance OP.
Accordingly, the company’s higher-level staff should develop CSR-related strategies
proactively to increase OP with full organizational support. Moreover, policymakers also
need to focus on the GTL that can improve further CSR and POS, which ultimately will give
best and sustainable OP in construction firms. The empirical evidence will be very much
fruitful for most of the developing countries by implementing it in order to upgrade
sustainable OP of construction firms.
This study also explore a multidimensional approach with direct effect, indirect effect,
moderating effect and control variable effect for appropriate and sustainable safety
performance of the construction firms. Results from the study focused on conceptualizing,
empirically testing and identifying mediated moderating modeling in construction firms of
Nepal with developing a new model that unveils social responsibility that results in a better
and sustainable OP. Hence, the study has added novelty that might be helpful for the future
researcher those are interested in this kind of study.

5.3 Managerial implications

This study contributes to accepting the importance of adopting CSR, which enables
construction companies to enhance fruitful and sustainable OP. Policymakers also need to
focus on the GTL that can improve further CSR and POS, which ultimately will give the best
and sustainable OP in construction firms. Senior management level should recognize that
CSR practice with support and better leadership highly impact employee yielding enhanced
OP. The empirical evidence will be desperately productive for most of the developing
countries by implementing it to upgrade the sustainable OP of construction firms. From the
empirical significant result output, the managerial level should implement this novel model to
find the deviation on OP before and after focusing all constructs in the model with special
attention to POS as mediator and GTL as moderator.
Assurance of POS and GTL among the employees of the construction firms from the
managerial level directly influences the effective OP. Keeping that in mind, the role of a
manager should be highly focused on the application of GTL and POS in construction sites.
Moreover, this outcome encourages managers to pay attention to potential intervention
BPMJ studies to implement more successful and cost-effective alternative therapies for reliable and
27,5 sustainable OP. Construction firms are unable to identify hidden threats at the site due to the
lack of knowledge of corporate social relationship return at the management level because
employees are much distracted toward organizations outcomes. Besides, such incidents
would have significant human costs and negatively affect construction firm efficiency,
monetary outcome and public image.
Furthermore, we recommend that organizations need to adopt CSR for their concerned
1386 managerial team, as this team directly affects the decision-making process for the
organizational outcome. Such training supports recognizing threats and opportunities for
long-term effective performance. Additionally, greater engagement of third parties, like
policymakers, is in prime in the development of strong performance and efficiency of
workers. The empirical evidence will be very much fruitful for managers and practitioners
of most of the developing countries by implementing it to upgrade the sustainable
performance of construction firms. Besides, managers should concentrate on the
implementation of effective government strategies, legislation, management initiative
and workplace climate, and ultimately the eagerness of the staff are major parameters to
achieve effective and sustainable performance levels along with significant mediation
output within a relationship.

6. Conclusion
The results suggest that the organizations consider CSR as valuable resources that
contribute to a sustainable competitive advantage by improving OP. The results revealed
that CSR has a significant positive impact on the OPs in construction companies. Concerning
the mediation model, it is found that the POS employs a competitive partial mediating effect
on the relationship between CSR practices and OP. These results indicate that CSR practices
are beneficial for the improvement of employee’s social responsibility with organizational
support to enhance OP. Accordingly, the company’s higher-level staff should develop CSR-
related strategies proactively to increase OP with full organizational support.
The findings of the study further reveal that GTL plays a vital role in moderating the
relationship between CSR and OP. After analyzing the interaction effect, the results show that
CSR leads to a higher level of OP when an organization promotes GTL. From the analysis, it
can interfere that if green leadership is promoted in the organization, the organization will
ultimately yield a better and sustainable organizational output.

7. Limitation and future research

Although the results of the study add to the current knowledge base, several limitations
highlight avenues for future research. First, the current study used POS, as the mediator on
the relation of CSR-OP. POS is a motivational and social identity perspective construct and
still an essential topic in the extant literature. Other intervening variables for the CSR-OP
relation may yield a better approach for the high influence of CSR-OP relation in other study
areas. Second, the time consumption for the study sample is very limited, which is not
adequate. Hence, future studies should consider a longitudinal study to get information that
could be a remedy to make causal interference.
Third, the study used GTL as a moderating variable, which is a new approach. Future
studies can further study the relation in other study areas, add evidence on a similar result with
different analysis patterns and study sample. Finally, the output from this study is fruitful
mostly for developing countries. In contrast, a comparative study among developing with
developing countries in the future might bring a clear understanding of the global scenario for
this kind of research. In closing, replication studies in other service settings (e.g. hotels, education
and medical institute) are to broaden the database from further generalizations.
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Corresponding author
Manita Kusi can be contacted at: manyatasth2@gmail.com

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