The impact of leadership on employees’ innovation behavior: evidence from China’s energy listed companies

Abstract This paper provides an in-depth analysis of how management efficiency affects sustainable development in China’s top 10 private energy companies from 2005 to 2021, using the CUP-FM technique. The study finds a notable correlation: a 1% improvement in management efficiency results in a 0.21% reduction in energy expenditure. This highlights the significance of efficient management practices, such as streamlined processes, better resource allocation, and advanced technology use, in optimizing energy consumption and promoting sustainability. Conversely, a 1% increase in the number of employees leads to a 0.49% increase in energy expenditure due to increased operational activities and resource needs. The research also explores the impact of other variables, including earnings per share (EPS), tax payments, and technology spending, on energy expenditure among listed energy companies in China. To foster innovation among employees through improved management efficiency, the paper suggests practical policies such as enhancing sustainable literacy, providing green loans, implementing standardized reporting, and encouraging collaboration and knowledge sharing among energy companies.