Leading for a Greener Future: How Green Vertical Leadership Shapes Innovation and Project Success

Sustainability is a strategic priority for businesses. This study examines how green vertical leadership influences green project performance, with green proactive and reactive innovation as mediators. Green vertical leadership, marked by centralized decision-making and strategic oversight, enhances compliance-driven sustainability and structured innovation. Results show that green vertical leadership fosters both proactive and reactive innovation, improving environmental efficiency and project outcomes. Green proactive innovation drives long-term sustainability, while green reactive innovation ensures regulatory adherence. Both innovation types link leadership to green project success. This study extends stewardship and organizational learning theories, highlighting leadership’s role in sustainability-driven innovation. It offers insights for business leaders and policymakers, emphasizing the need to balance strategic control with innovation for effective sustainability management.