ORIGINAL RESEARCH

published: 08 June 2022

doi: 10.3389/fenvs.2022.901235

Green Human Resource Management

and Sustainable Performance With the
Mediating Role of Green Innovation: A
Perspective of New Technological Era
Awwad Saad Awwad Al-Shammari 1, Shaher Alshammrei 2, Nishad Nawaz 3 and
Muhammad Tayyab 4*
1
Department of Management & Information System, University of Ha’il, Ha’il, Saudi Arabia, 2Department of Mechanical
Engineering, University of Ha’il, Ha’il, Saudi Arabia, 3Department of Business Management, College of Business Administration,
Kingdom University, Riffa, Bahrain, 4Sir Syed CASE Institute of Technology, Islamabad, Pakistan

The purpose of this study is to investigate the relationship between green human resource
management bundle practices and green innovation and their impact on sustainability
performance as measured by the Triple Bottom Lines (i.e., environmental, social, and
economic performance). It is decided to use a quantitative approach in order to collect data
from 335 small- and medium-sized (SMEs) businesses operating in the Kingdom of Saudi
Edited by:
Munir Ahmad,
Arabia, through a customized survey. Structure equation modeling was applied through
Zhejiang University, China smart PLS to analyze the collected data. Results show that green human resource
Reviewed by: management bundle practices have a positive and significant impact on the
Muhammad Idrees, sustainable performance of SMEs. Furthermore, results indicate that green innovation
University of Agriculture, Faisalabad,
Pakistan has a significant impact on sustainable performance and green innovation partially
Sobia Naseem, mediates the relationship between green human resource practices and sustainable
Shijiazhuang Tiedao University, China
performance of SMEs. This study demonstrates that the implementation of GI by firms
*Correspondence:
Muhammad Tayyab
can be enhanced through the use of GHRM, which, in turn, would enhance the firms’
[email protected] sustainability. Additionally, this study both confirms and enhances the traditional
understanding. The study also depicts that environmental management practices in
Specialty section:
the human resource and innovation sectors can result in greater sustainability.
This article was submitted to
Environmental Economics and
Keywords: green skills, green human resource management, green innovation, sustainable performance, SMEs
Management,
a section of the journal
Frontiers in Environmental Science INTRODUCTION
Received: 21 March 2022
Accepted: 19 April 2022 Increasing environmental concerns and the need for sustainable practices have resulted in a call for
Published: 08 June 2022 environmentally, economically, and socially sustainable practices in manufacturing organizations.
Citation: Every organization now has an obligation to balance its economic, social, and environmental
Awwad Al-Shammari AS, performance, especially those that operate in a highly competitive and regulated environment.
Alshammrei S, Nawaz N and Tayyab M Balancing these factors is perceived as a challenging task, even controversial in some cases (Renwick
(2022) Green Human Resource et al., 2013).
Management and Sustainable
When introducing environmental management systems into an organization, it becomes very
Performance With the Mediating Role
of Green Innovation: A Perspective of
difficult to improve its environmental and social performance and increase its economic
New Technological Era. performance while maintaining cultural norms and integrating green behaviors into the
Front. Environ. Sci. 10:901235. organization’s operations (Al-Ghazali & Afsar, 2021). Dost et al. (2019) suggested that the cross-
doi: 10.3389/fenvs.2022.901235 functional distribution of green ideologies can assist in addressing these challenges. Researchers

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

investigated how green management should be applied to two to higher performance and competitive advantage throughout the
critical business functions: human resources and innovation system. As discussed earlier, the following section focuses on the
(Roscoe et al., 2019). formulation of hypotheses, and we use RBV (Barney, 2001) in
The relationship between these two functions needs to be order to construct arguments and propose several hypotheses to
further researched, however. Recent studies suggest studying how empirically test in research.
green management is distributed within various functional areas
of an organization in order to examine concurrent results and the Hypotheses Development
mutual relations among the various functions (Lei et al., 2021). Green Human Resource Management Bundles and
Our study investigated the use of green management systems in Sustainable Performance
human resources, and the relationship between the two. It is well There is a growing understanding that the environmental impacts
known that green human resource management (GHRM) and of HRM processes should be taken into consideration throughout
green innovation (GI) have a positive impact on the environment, the entire process since HRM practices contribute to
but there have been few studies that investigate their interaction implementing and maintaining an environmental management
(Seeck & Diehl, 2017). First, despite acknowledging that GHRM system (EMS), thereby helping organizations to achieve higher
practices define GSCM practices internally, some researchers environmental performance (EP) (Gilal et al., 2019; Yusoff et al.,
have primarily focused on the pressures companies face from 2020). In fact, GHRM ensures that firms are spread effectively
outside. There is very minimal discussion of a “green version” of and become more environmentally friendly. GHRM is essential
human resource management (HRM) or innovation in the for company management for several reasons, including
literature that deals more specifically with the relationship environmental benefits, employee retention, and increasing a
between HRM and innovation. As such, further studies are company’s appeal. Former HRM literature emphasized the
required in this area to explore the mutually reinforcing effects of individual practices as opposed to a set of HRM
results that GHRM and GI might provide at the triple bottom practices on firm performance (Pham et al., 2020; Awan et al.,
line (TBL): the environmental, financial, and social performance 2022).
of a company (Çop et al., 2021). Renwick et al. (2013) suggested that GHRM policies acting in
GHRM and GI are examined as attributes of sustainable concert could even have a greater impact on organizational
performance for medium and large manufacturing companies performance and the environment. Accordingly, recent
in the Kingdom of Saudi Arabia, and how both factors can affect literature on GHRM has focused primarily on how GHRM
the TBL of sustainable performance (environmental, social, and practices influence bundle performance. RBV can be used to
economic). GHRM practices and GI in developing countries are distinguish the resources used by organizations, according to (Gul
seldom explored in studies, as noted earlier. For example, et al., 2021a; Rizvi & Garg, 2021). It could affect an organization’s
empirical studies surrounding green practices are relatively economic performance (Ec.P) and eventually increase its
new, especially for emerging markets. As such, this study efficiency. Instituting GHRM practices into an organization’s
presents empirical evidence from GHRM and GI research practices, therefore, can result in improved EP over time
conducted in a developing country. (Hameed et al., 2021).
Siyambalapitiya et al. (2018) suggested that if green practices
in the workplace increase employee characteristics such as
LITERATURE REVIEW motivation, and competence, financial performance may
improve as a result. Employers who take environmental
Theoretical Background responsibility into account when recruiting workers, or at least
In this study, we study and explain the HRM-performance show they care about the environment, will draw candidates who
relationship for manufacturing sector SMEs in the Kingdom of will be drawn to the company’s environmental consciousness
Saudi Arabia using a resource-based view (RBV). There is no (Tariq et al., 2016; Jamil et al., 2021a). Developing and
doubt that human capital affects firm performance and these encouraging the environment’s interests and activities can also
links have roots in the existing HRM and strategy literature be helpful for companies, as it can result in increased skill and
(Barney, 2001). Firms with resource-based views examine how motivation, better retention and productivity, and overall
their ability to leverage their valuable, scarce, and difficult to improved Ec.P. Shah, (2019) argued that, as organizations go
imitate strategic resources may affect their competitive advantage green, they aim to create a more sustainable corporate culture that
and performance (Barney, 2001). The strategic resources provide leads to increased efficiencies and costs reductions, while
long-term superior performance and continuous competitive improving employee satisfaction. Promoting a greener culture
advantage to the organization if they are hard to duplicate or results in improved sales and lower costs (Longoni et al., 2018;
extremely expensive for competitors to imitate (Santos et al., Jamil, et al., 2021b).
2020). In GHRM practices, employee behavior is proactively In addition to higher employee satisfaction, improved
identified, developed, motivated, and extended for the firm’s stakeholder relationships, and increased employee retention,
sustained competitive advantage and superior performance firms that tackle environmental issues benefit in many ways
based on RBV (Hameed et al., 2021). We have found that (Yu et al., 2020; Naseem et al., 2021). Among the other
human capital, when integrated into a firm’s complex social benefits cited is an improved sense of social responsibility
system, usually satisfies the RBV criteria, as it may contribute among the workforce and a better ability to recruit and retain

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

FIGURE 1 | Conceptual framework.

talent. As Paillé et al. (2020) documents, companies that invest in costs. Chen et al. (2014), for instance, determined that eco-design
social responsibility are likely to benefit in a number of ways, (ECO), an aspect of GI, leads to cost savings that have a
including customer satisfaction, excellence in staff recruitment, significant influence on the Ec.P. of the company by reducing
and innovation, something that contributes directly to their social waste and enhancing materials efficiency. Also, Yang et al. (2021)
performance (Kim et al., 2019; Awan et al., 2021a). A significant cited ECO practices as a significant contributor to cost reductions
step was taken by firms whose investments in social programs through the increased likelihood of selling products abroad, and
reinforced GHRM, as mentioned by Saeed et al. (2019). Such as a major benefit that outweighs the costs involved.
programs are designed to protect employee health and safety, By adopting green practices, employers and local communities
such as preventing them from being exposed to harmful are believed to enjoy a healthier work environment and community,
emissions. The incorporation of green programs will improve respectively (Jamil, et al., 2021c; Ullah et al., 2021). It has been shown
manufacturing companies’ sustainability in addition to serving as that environmental-friendly manufacturing operations and less
a reporting tool (Jabbour and de Sousa Jabbour, 2016; Naseem pollution are beneficial to the social dimensions of employees
et al., 2020). and society as a whole. This point is emphasized by Farza et al.
In order for organizations to maximize the impact of their SP (2021), who suggest that corporations can achieve a number of social
activities, they must ensure that they entail social activities that objectives such as customer protection, market transparency, and
can impact both their internal communities (employees) and environmental conservation. GI can, therefore, contribute to SP
external communities (suppliers and customers) (Awan et al., when organizations integrate it into their business operations (Gul,
2021b; Samad et al., 2021). Additionally, research shows that et al., 2021b; Mandal & Pal, 2021).
organizations that have adopted GHRM practices contribute to GI practices have generally been found to increase customer
employee welfare and environmental protection through their loyalty, enhance a company’s brand identity, provide equal
GHRM practices. Employee health and welfare are positively opportunities, assure safety, and promote ethical practices
affected when GHRM practices and policies are implemented by a (Kraus et al., 2020; Mohsin et al., 2022). Although fewer
company, according to Mousa & Othman, (2020). Through this empirical studies exist on the relationship between GIs and
adoption, the company’s Ec.P improved overall and the welfare of SPs, existing research does suggest eco-friendly practices may
the employees. Therefore, we proposed the following hypothesis: be effective in promoting customer loyalty and enhancing a
H1: GHRM practices have a significant impact on sustainable company’s brand identity (Asadi et al., 2020; Gul et al.,
performance 2021c). Therefore, the following hypotheses are proposed:
H2: GHRM practices have a significant impact on green
Green Innovation and Sustainable Performance innovation.
The findings of Wang et al. (2020) on GI support the proposition H3: Green innovation has a significant impact on sustainable
that green purchase (GP) and cooperation with customers who performance.
are in GI or EP are positively correlated. Some evidence suggests
that GP and environmental cooperation (EC) influence supplier Mediating Role of Green Innovation
and customer behavior in an environmentally friendly and As a result of this study, it suggests that studying the interaction
sustainable manner, thus improving the EP of manufacturing between GHRM and GI may help to understand how these
organizations (Long et al., 2020; Li et al., 2021). Monitoring and factors impact sustainable performance. Through the RBV,
educating suppliers may enable companies to provide products Barney, (2001) argued, that HRM practices could influence
that are hardly harmful to the environment, therefore increasing organizational performance through the transformation of
their EP (Sarfraz et al., 2021). employees into extraordinary, important, and unique
By focusing on GI, which uses eco-friendly manufacturing resources. The company’s goals can be better supported when
practices, companies can achieve higher levels of efficiency and it uses such a resource to develop its business. Zhang et al. (2020)
reduce the number of resources used, ultimately reducing total argue that talent is utilized in innovation to achieve an

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

TABLE 1 | Characteristics of the respondents.

Characteristics Range Frequency Percentage (%)

Age of the organization Less than 10 years 60 17.90

10–20 years 95 28.35
20–30 years 95 28.35
Above 30 years 85 25.04
Total 335 100.00
Ownership of the organization Government owned 115 34.32
Private owned 220 65.68
Total 335 100.00
Size of the organization Less than 100 employees 78 23.28
100–200 employees 77 22.98
200–300 employees 91 27.16
More than 300 employees 89 26.58
Total 335 100.00

organization’s goals. In addition, employees who work in cleaning procedure, which involves finding and eliminating responses
innovation can also help the organization to perform better, from respondents who either do not meet our target requirements or
which will lead to a sustainable competitive advantage did not react cautiously to the questionnaire survey, such as
(Rehman et al., 2021). The interaction mechanisms of various respondents only address part of our survey; respondents provide
resources can also provide a competitive advantage. There is a ambiguous answers or/and select the same answer option repetitively,
general consensus in the literature that effective implementation and respondents provide incomprehensible suggestions for open-
of GI is largely determined by GHRM practices (Gul et al., 2021d; ended questions. We employed Armstrong & Overton, (1977)
Fan et al., 2021). Thus, the lack of HRM practices may result in approach to determine perceived anti-reaction bias. Independent
the inability to engage environmentally conscious employees, and sample and chi-square T-tests were conducted to analyze the initial
the conventional organizational culture may contribute to the 55 and the final 55 respondents via demographic factors, that are age
inability to implement GI. By investigating the impact on and gender. The findings revealed no major variations between the
sustainable performance, this study expands on these two response classes (p > 0.05). Figure 1
experimental studies (Takalo & Tooranloo, 2021; Jamil et al.,
2022). Measures
GHRM provides technical support in attracting and hiring The study used items established from prior research to confirm
people with the necessary skills and commitment to implement the reliability and validity of the measures. All items are evaluated
environmental ideologies and standards in a context of an through five-point Likert-type scales where “1” (strongly
innovative business model, in addition to disseminating disagree), “3” (neutral), and “5” (strongly agree).
environmental ideologies and standards (Tang et al., 2018). In Dependent variable: sustainable performance was used as the
their study, Haddock-Millar et al. (2016) assert that GI mediates dependent variable and measured with its three dimensions
the relationship between GHRM and EP to a great extent. RBV namely environmental, economic, and social, we used nine
facilitates a more systematic investigation of the relationship items adopted from the prior study of Jabbour & de Sousa
between GHRM-GI and sustainability outcomes by explaining Jabbour, (2016).
the connection between green practices and sustainability Independent variable: to analyze GHRM bundle practices as
outcomes. Therefore, the following hypothesis is proposed: an independent variable with its three dimensions we used ten
H4: Green innovation mediates the relationship between items adopted from a prior study by Yu et al. (2020).
GHRM practices and sustainable performance (see Figure 1 Mediating variables: green innovation is used as mediating
for all the relationships). variable in this study. Green innovation is measured with six
items adopted from the previous study by Zailani et al. (2015).
Methodology
We gathered data from small and medium enterprises (SMEs) Sample Description
working in the Kingdom of Saudi Arabia. A convenient sampling The demographic profile of 335 respondents, such as ownership
approach was employed (Kothari, 2004). A questionnaire was form of the organization, age of the organization, and size of the
developed in the English language and translation in the Arabic organization, are shown in Table 1. Total sample is presented as
language was also presented on the questionnaire for a better bold in the table.
understanding of the responding employees. The overall sample
size of this research was 335 medium and upper-level
management of enterprises. A total of 515 questionnaires were RESULTS
distributed through emails, and 365 responses were received. There
were 335 appropriate replies for the final analysis, with a response rate This study used smart PLS to evaluate the model. This study
of 65%. Valid questionnaires are selected following the survey data wants to use confirmatory and exploratory research so the PLS-

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

TABLE 2 | Inner model evaluation.

Variables Constructs Factor loading AVE CR α

Green HR practices

Green hiring GH1 0.803 0.671 0.802 0.732

GH2 0.835
Green training and involvement GT1 0.924 0.745 0.897 0.835
GT2 0.883
Green performance management and commitment GPMC1 0.892 0.712 0.814 0.700
GPMC2 0.793
Green innovation GI2 0.740 0.637 0.898 0.857
GI3 0.851
GI4 0.786
GI5 0.762
GI6 0.846
Sustainable performance
Sustainable environmental performance SEP1 0.862 0.696 0.872 0.778
SEP2 0.751
SEP3 0.884
Sustainable economic performance SEP1 0.905 0.712 0.880 0.794
SEP2 0.743
SEP3 0.875
Sustainable social performance SSP1 0.874
SSP2 0.891 0.779 0.875 0.717

SEM analysis was selected. Sarstedt et al. (2014) argue that Behind factor loading of 21 indicators is greater than o.7, and Cronbach’s
the Partial least square modeling, there are two approaches alpha (α) for all variables must be higher than the acceptance
known as structural modeling and covariance bias. The criteria which is 0.7. On the other hand, the composite reliability
hypothesis testing was done through PLS-SEM and the for all constructs exceeds the threshold level of 0.70 (Chin, 1998).
hypothesis expansions were usually tested through SEM (Hair All indicators or dimensional scales should have values greater
et al., 2016). The PLS is best suited for multi constructs models than 0.60 (Bagozzi & Yi, 1988). it is shown in the table all 3
and multiple order constructs models. The small sample size used variables had Cronbach Alpha values above the suggested limit of
for analysis is also advantageous in Smart PLS-SEM. Smart PLS- 0.60 (Bagozzi et al., 1991). Composite reliability values ranged
SEM provides it straightforward to compute all parameter from 0.85–0.96 and were all above the recommended value of
computations (Hair et al., 2016; Usman Shehzad et al., 2022). more than 0.60 (Bagozzi & Yi, 1988) or greater than 0.70 as
The current study was done using Smart PLS 3.9. suggested by (Vinzi et al., 2010). In light of these findings, it can
The degree to which the study variables deviate from their be concluded that all of the research hypotheses examined in this
latent variable is called unidimensional. In order to verify study are valid and trustworthy. The factor loading, Cronbach’s
construct reliability and validity, an investigation of the study alpha (α), a composite reliability confirms the indicator reliability
constructs’ unidimensional is a criterion that must be achieved. (Henseler et al., 2016).
According to Henseler et al. (2015), the factor loading of items The convergent validity of variables is evaluated by using the
within each construct was used to determine unidimensionally. “composite reliability” (CR) and “Average variance extracted”
There is strong evidence that all of the constructs indicated in the (AVE) and construct reliability for all variables (Hair et al., 2016).
measurement model are unidimensional. The researchers say that CR and AVE must be higher than the
minimum acceptable value which is 0.7 and 0.5 consecutively. By
Model Measurement utilizing composite reliability and average variance extracted
The study is quantitative in nature and data was collected through (Fornell & Larcker, 1981a). The Table 3 indicates that all
a survey questionnaire. The study analyzed the Green HR variables have loading higher than 0.70 and CR is greater or
practices, Green innovation, and environmental performance. equal to 0.70, The AVE score should be greater than 0.50 which
First, we examine the construct reliability and validity of the illustrates the convergent validity is the acceptable and internal
external model through the Smart PLS algorithm (Table 2). The consistency of items (Chin, 1998).
analysis shows that 21 indicators out of 28 have factor loading
greater than 0.7. the model reliability was assessed through factor Discriminant Validity
loading and Cronbach Alpha (Hair et al., 2016). Cronbach’s Several tests were used to examine discriminant validity. As a first
alpha, Average variance extracted and composite reliability step, it may be explored in the measurement model by looking at
may be used to determine the degree of consistency between the latent constructs’ shared AVE. We determine whether the
several measurements of a variable (Hair Joseph F et al., 2010). model is evaluated through the correlation among constructs. If
The value of Cronbach Alpha for all variables should be greater there are any extremely high correlations among constructs, the
than the threshold level which is 0.7 (Sarstedt et al., 2014). The model is likely to have discriminant validity issues. Construct

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

TABLE 3 | Discriminant validity.

Fornell–Larcker criterion Heterotrait–monotrait (HTMT) ratios

GHRP GI EP GHRP GI EP
GHR practices 0.844 GHRP 0.813
Green innovation 0.682 0.908 GI 0.854 0.837
Sustainable performance 0.622 0.714 0.860 SP 0.727 0.825 0.748

TABLE 4 | Hypothesis testing.

Hypothesis Beta and Confidence interval F2 P values Conclusion

(t value)

H1 GHRMP -> SP 0.277 (5.817) 0.073 to 0.243 0.082 0.000 Supported

H2 GHRMP-> GI 0.8136 (28.106) 0.134 to 0.198 0.321 0.000 Supported
H3 GI -> SP 0.096 (2.561) 0.068 to 0.172 0.086 0.010 Supported

FIGURE 2 | Measurement model.

validity occurs when the square correlation for each construct square root of AVE should be larger than the correlation with
surpasses the AVE for each of the other components (Fornell and other constructs. However, values between 0.90 and 0.95 are
Larcker, 1981b). AVE values for each construction were more acceptable for HTMT ratios but must be less than 0.85 (Hair et al.,
than or equal to 0.50, as shown in Table 4, indicating that the 2016). There are no HTMT ratios greater than 0.90 in Table 3,
constructions ranging from 0.54 to 0.71 were responsible for confirming the discriminant validity of the model.
more than half of the variation in their respective measurement The Variance Inflation Factor (VIF), values were computed in
items, as recommended. Fornell–Larcker criteria and this study to check for Conceptual model collinearity concerns.
heterotrait–monotrait (HTMT) ratio are two strategies used to VIF values below 5 indicate that no collinearity issues exist in the
assess the discriminant validity of the model (Hair et al., 2016). data, according to experts (Hair et al., 2014). It was found that the
Fornell and Larcker, (1981b) argue that it is important to keep in objects’ inner VIFs ranged from 1.321 up to 1.876. The results of
mind that the upper right side values of the diagonal which is the this investigation show that there is no evidence of data

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

TABLE 5 | Predictive accuracy. indirect impact relative to overall effects, and it is calculated as a
R square R square adjusted percentage of total effects. Table 6 shows that there is partially
mediating the impact of both the direct and indirect effects (Nitzl
Green innovation 0.619 0.619 et al., 2016). Figures 3, 4.
Sustainable performance 0.792 0.792

DISCUSSION
collinearity and that the conclusions remain constant throughout
time. R2 greater than 0.5 indicates a suitable model. All There is no doubt that the findings of this comprehensive study
exogenous constructs have R Squared values larger than 0.5 in allow business enterprises to develop a deeper understanding of
Figure 2, indicating that the model’s predictive accuracy is quite how to appropriately manage their ethical obligations to the
high (Hair et al., 2016). All of the model’s latent variables have Q2 natural environment. A range of organizational functions is
values suggesting that the model is highly predictive (Hair Joe F considered in this study in relation to sustainability
et al., 2016). performance components (EP, Ec.P, and SP). Based on the
When assessing the model’s “explanatory power,” the R2 value results, we conclude that GHRM practices and SP (supporting
for each predicted variable was computed. it indicated the degree H1) show a positive correlation, with GHRM bundles facilitating
to which the IV explains the DV. Predictive accuracy is measured the dissemination of environmental management-based
by the R2 value, which ranges from 0 to 1. The R2 value is ideologies. In this way, employees are given a chance to
described as “weak,” “moderate,” and “strong,” with R2 described properly contribute to the development of the environment
as weak with a value of 0.25 and R2 value being moderate with within their organization. Having an inspired and dedicated
0.50. and the R2 value is 0.75 considered substantial. All workforce adds economic value to a company as well.
exogenous constructs in Table 5 have R Square values higher Furthermore, it was an important finding which supports
than 0.5, which indicates that the model has excellent predictive previous results of Saeed et al. (2019) that implementing green
accuracy (Hair et al., 2016). practices for GHRM bundles and SPs would bring benefits such
as cost savings, sustainability, and increased corporate social
Model Assessment responsibility, allowing a company to enhance its reputation
This study examines the hypothesis by using bootstrapping at 5,000 and improve community health.
with sample replacement (Hair et al., 2016). The above table According to the findings of Mousa & Othman, (2020) and
illustrate that Green HRMP have significant positive impact on Longoni et al. (2018), GHRM has a significant positive influence
sustainable performance (β = 0.277, t value = 5.817, p-value = 0.000). on GI (supported H2). In order to improve innovation and create
green innovation has significant and positive relationship with a sustainable competitive edge, GHRM is necessary to facilitate
sustainable performance (β = 0.813, t-value = 28.106, p = 0.000). GI (Jose Chiappetta Jabbour, 2011).
Green HRM practices have significant relationship with green It is important to examine the particular mechanisms
innovation (β = 0.096, t-value = 2.561, p = 0.000). the findings underlying the relationship between GI and performance even
indicate the Hypothesis H1, H2, and H3 are accepted. Table 6 though the results of the current study confirm GI’s positive
correlation with sustainable performance. A strategic fit might
Mediation Analysis exist between GI and EP, Ec.P, and SP, and such practices may
Green Innovation plays a mediating role in the Green human positively correlate with these three types of performance
resource management and environmental performance. the value (supporting H3) and this finding is parallel with the previous
for VAF of more than 80 percent implies complete mediation, results of Kim et al. (2019), they found an important correlation
whereas VAF larger than 20 percent and less than 80 percent exists between GI and the optimization of inputs and assets. This
suggests partial mediation for mediation effects, and VAF less results in cost savings through resource recycling, energy-saving
than 20 percent indicates no mediation (Hayes & Preacher, 2010). initiatives, less rework and waste, improved quality, and a creative
The findings show that green innovation partially mediates the approach to creating new products and processes.
relationship between green human resource management In addition to demonstrating how GI can be applied to
practices and Sustainable performance. Using the t-test and "GHRM bundle-shaped employees’ who are environmentally
p-value, the findings show that Green Innovation partially engaged, competent, and inspired (contributing to H4), the
mediates the relationship between GHRMP and Sustainable study also illustrates how shared environmental ideologies and
Performance. There was an indirect impact (=0.078, t-value = standards may help improve SP. GI practices should be utilized in
2.275, p-value = 0.000) with VAF 68 percent, which indicates line with internal resources, as Yu et al. (2020) and Yusoff et al.
partial mediation. VAF is used to indicate the amount of the (2020) have stated.

TABLE 6 | Mediation analysis.

Hypothesis Direct effect Indirect effect Total effect VAF (%) Explanation Result

GHRMP->GI->SP 0.277 (5.817) 0.078 (2.275) 0.3559 (5.351) 68 Partial mediation H4, supported

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

FIGURE 3 | Composite reliability.

FIGURE 4 | Bootstrapping.

Taking an interdisciplinary approach, the study contributes to human resource practices align in order to reduce barriers to GI
the debate on cross-functional environmental management adoption, which in turn helps firms green. Thus, green training
systems. Earlier important theoretical studies have programs need to pay more attention to GI, which will improve
hypothesized that cross-functional integration is a key to the organization’s SP (Gilal et al., 2019).
effective environmental management, as demonstrated in this
study. In conclusion, this study mostly supports the hypothesized Theoretical Implications
mediation model in which GHRM and GI practices should be Thus, the present study contributes to the RBV literature by
coordinated and designed cross-functionally. It is crucial that examining the combined impacts of resources (GHRM and GI)

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

on sustainability performance and identifying which aspects invest in innovative processes and create cross-functional
contribute to improved performance (Renwick et al., 2013). management approaches for green management. Additionally,
Therefore, this study demonstrates that the implementation of the findings of this study provide managers with suggestions that
GI by firms can be enhanced through the use of GHRM, which, in will help them improve sustainable performance. A GI-based
turn, would enhance firms’ sustainability. Additionally, this study approach can positively affect sustainable performance (Farza
both confirms and enhances the traditional understanding. The et al., 2021). Thus, integrating environmental standards beyond
study demonstrates that environmental management practices in organizational limits is not a significant indicator of how a
the human resource and innovation sectors can result in greater company will perform, so paying special attention to this issue
sustainability. As a result, this study adds substance to previous may be inconvenient. As an example, managers should focus on
meta-analyses that indicate that HRM practices and innovation human resources. Also, promoting green hires and selections
can improve firms’ competitiveness. Consequently, the present while providing sufficient environmental awareness training to all
study contributes to implementing green management at the employees, top management needs to acknowledge that
cross-functional level by demonstrating how green performance resistance to change can hinder GI implementation. This
can be enhanced by creating a resource (for example, skilled, barrier is easily overcome by promoting green hiring and
competent, and motivated staff) within GI through GHRM. In selection. It was the goal of this study to provide
light of these findings, it is essential that environmental plans manufacturers with empirical evidence as to what actions
develop GI alongside GHRM practices. Consequently, this study’s could have the most impact on the TBL of sustainability in
results are consistent with those of other studies that have order for them to better comprehend the impacts of such actions.
highlighted how important it is to have an effective green
HRM program (Pham et al., 2020). Limitations and Future Research Directions
Green human resource management and innovation The limitations of our study are presented and also the directions
initiatives can result in more sustainable firms through a link for future research. Our study was limited to the manufacturing
between green human resource management and innovation sector in the Kingdom of Saudi Arabia, and therefore, cannot be
practices, which has not been explored in developing generalized to non-manufacturing sectors. To that end, we
countries’ manufacturing industries (Chaudhary, 2020). In recommend extending our conceptual research framework to
addition, it continues to develop research on sustainable non-manufacturing sectors in the future. In the present study,
performance by studying how three major elements of GHRM environmental beliefs and values, which moderate the
can be interrelated in manufacturing for sustainability (EP, Ec.P, relationship between HRM and performance, were not
and SP). Therefore, identifying these links serves as a means of examined at the employee level. Therefore, we propose that
identifying the priority and validity of GHRM and GI in future research should identify the contribution of employees’
manufacturing contexts, thus adding to our understanding of environmental values and beliefs to understanding how green
the strategic links between human resources and innovation that HRM affects green innovation. The third limitation of this study
manufacturing firms need to achieve environmental was that only internal factors related to sustainable strategies were
sustainability. In addition, because empirical research linking examined. A future study should encompass both internal and
GHRM and GI is rare, this study brings evidence from a external factors in order to understand how proactive sustainable
developing country (for example, the Kingdom of Saudi strategies can be developed, implemented, and maintained. We
Arabia) into the literature. also surveyed how organization members perceive sustainability
and green innovations. Future research should sample
Managerial Implications perceptions of internal and external stakeholders to better
From an operational point of view, this study can assist understand green innovation and sustainable performance.
manufacturing firms in establishing environmental strategic
objectives that are linked with particular aspects of their HRM
and innovation practices. As a result, employees are likely to DATA AVAILABILITY STATEMENT
become deeply involved in shaping environmental policies
(Mousa & Othman, 2020). Empirical evidence suggests that The raw data supporting the conclusion of this article will be
companies need to adopt an environmental management made available by the authors, without undue reservation.
process that appeals to both human resource managers and
operations managers, since such a shift may help ensure the
long-term sustainability of a business. In addition, the study helps AUTHOR CONTRIBUTIONS
managers orient their GHRM efforts toward HR initiatives that
enhance employee motivation and knowledge and synergistic All authors listed have made a substantial, direct, and intellectual
investments in HR. The management should then continue to contribution to the work and approved it for publication.

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Awwad Al-Shammari et al. Green HRM and Sustainable Development

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