Green Human Resource Management as a Catalyst for Sustainable Performance: Unveiling the Role of Green Innovations

Green human resource management (GHRM) has emerged as an essential strategy for achieving environmental sustainability within organizations. However, there remains a significant gap in understanding its direct impact on sustainable performance. This study seeks to address these gaps by investigating the relationship between GHRM and sustainable performance, with a focus on the mediating role of green innovation and the moderating influence of transformational leadership. A cross-sectional study was conducted among Malaysian small and medium-sized enterprises (SMEs) to explore the interrelationships between green HRM, green process and product innovation, sustainability, and the role of sustainable leadership. The study’s findings reveal a positive and significant relationship between green HRM practices and sustainability, encompassing environmental, economic, and social aspects. The findings suggest that management support for environmental initiatives is a critical factor in enhancing the effectiveness and spread of green innovations, emphasizing the importance of GHM in the broader context of organizational change and sustainability. In addition, the study underscores the critical role of transformative leadership in fostering sustainable practices, particularly the significant moderator role of responsible leadership in driving sustainable business practices. In summary, this study provides a roadmap for businesses, particularly SMEs, to leverage HGRM as a strategic tool in their pursuit of sustainability.