Green Human Resource Management Practices: Driving Sustainable Innovation and Performance in Manufacturing SMEs

Abstract

This study investigates the impact of green human resource management (HRM) practices on sustainable business performance in manufacturing SMEs in industrial cities in Pakistan. Employing a positive approach and quantitative research design, the study focuses on primary HRM practices such as green recruitment selection and green training and development, investigating their impact on green innovation and, subsequently, on sustainable business performance. Researchers surveyed a sample of 350 managers and identified significant relationships through data analysis using SmartPLS software and structural equation modeling (SEM). The results indicate that both Green Recruitment & Selection and Green Training and Development positively influence Green Innovation, with subsequent positive impacts on sustainable business performance. The mediation analysis confirmed the crucial role of Green Innovation in linking Green HRM practices with sustainable outcomes. This study contributes valuable insights to the existing literature by offering a comprehensive understanding of the intricate relationships between these variables. The findings provide practical implications for HR professionals and organizational leaders, emphasizing the strategic importance of integrating environmentally friendly HRM practices to foster innovation and enhance overall business sustainability in the context of Manufacturing SMEs.