Unpacking Green Leadership's Performance Pathways: A Monte Carlo Simulation Approach to Multi-Mediator Structural Modeling

This study examines how Green Leadership drives Sustainable Business Performance through the joint mediation of green organizational identity (GOI) and green human resource management policies (GHP), grounded in the resource-based view. Three gaps motivate this research: the undertheorized joint mediation mechanisms, the unmodeled symbiotic reinforcement loop between the GOI and GHP, and the inferential limitations of conventional bootstrapping. A Monte Carlo simulation-based PLS-SEM framework (K = 10,000 iterations) was applied to data from 218 managers across diverse Vietnamese industries. The results confirmed a significant direct effect of Green Leadership on Business Performance (beta = 0.208, 95% MC-CI [0.107, 0.315]), with the total indirect effect through both mediators substantially larger (beta = 0.436; VAF = 67.7%). A strong symbiotic GOI-to-GHP path was confirmed (beta = 0.490, 95% MC-CI [0.392, 0.581]), positioning collective green identity and green human capital as co-evolving VRIN resources that jointly drive sustainable competitive advantages.