GREEN HUMAN RESOURCE MANAGEMENT (HRM) AND ITS IMPACT ON ENVIRONMENTAL SUSTAINABILITY: THE MEDIATING ROLES OF GREEN EMPLOYEE BEHAVIOR AND GREEN INNOVATION IN MANUFACTURING FIRMS

Abstract

This research investigates the role of Green Human Resource Management (GHRM) in promoting environmental sustainability within Pakistan’s manufacturing sector, with a specific focus on the mediating roles of green employee behavior and green innovation. Despite growing environmental pressures, many firms struggle to align human resource practices with sustainability goals. This study addresses the gap in empirical research by analyzing how GHRM practices—such as green recruitment, training, performance appraisal, and reward systems—influence green employee behavior and green innovation, ultimately impacting environmental sustainability and organizational performance. A quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM) on survey data from 250 managerial-level employees in manufacturing and service industries. The findings reveal that green recruitment and training significantly enhance employee motivation and engagement, which in turn positively influence organizational sustainability. However, green performance appraisal and reward systems showed no significant effect, indicating a critical implementation failure. The study contributes to the literature by empirically validating the psychological mechanisms through which GHRM influences sustainability outcomes. It also offers practical insights for managers to prioritize front-end GHRM practices and redesign underperforming administrative systems. The research underscores the importance of aligning HR strategies with environmental objectives to achieve long-term sustainability in developing economies.