Driving Sustainability: Green HRM’s Impact on Green Innovation, Mediating Role of Green Human Capital, and Moderating Influence of Organizational Culture

Abstract

A sustainable environment is essential for businesses, and it is encouraging to see companies embracing green practices. This study investigates the relationship between green human resource management (HRM) practices and green innovation, with a specific focus on the mediating role of green human capital and the moderating effect of organizational culture. Data was collected from 316 participants working in Pakistan's small and medium enterprises in the manufacturing sector. The data was gathered through selfadministered questionnaires and analyzed using SPSS and AMOS software. The study employed structural equation modeling to test the hypotheses. The findings indicate that green HRM practices have a positive impact on green innovation, and green human capital plays a significant role in mediating this relationship. Moreover, the study reveals that organizational culture reinforces the relationship between green HRM practices and green human capital. These results provide theoretical and practical insights for policymakers and managers of small and medium enterprises, emphasizing the importance of prioritizing environmental practices for long-term success and societal contribution. It is worth noting that this research is a pioneering effort in examining this theoretical model within the unique context of small and medium enterprises in Pakistan.