Abstract

The purpose of this study is to examine the effect of green leadership (GL) on employee pro-environmental behavior (EPEB). The underlying mechanism of followers’ green moral obligation (FGMO) was also investigated. The Islamic work ethic (IWE) was studied as a boundary condition. The study grounds upon value belief norm (VBN) theory. Data was collected from Islamic banking sector, Pakistan. Cross-sectional design was followed to collect the data from employees working in the Islamic banking industry. The final usable sample size was 365 observations. Partial Least Square Structural Equations Modelling (PLS-SEM) using Smart-PLS software was conducted to test the hypotheses. The results of this study proved that GL has significant positive effect on EPEB. FGMO partially mediated between GL and EPEB. IWE positively moderated the effect of GL on FGMO and of FGMO on EPEB. This study empirically provides that in order to promote the environmentally conscious behaviors amongst employees in the workplace, it is imperative that the leadership should be environmentally cautious. The underlying effect of FGMO, also proves that the behavior of leaders would obligate the followers. Furthermore, IWE strengthens EPEB. This study is unique to add to the body of literature by integrating FGMO as mediator and IWE as moderator to explain the relationship between GL and EPEB.