Impact of Green HRM Practices on Financial Performance: The Mediating Roles of Environmental Performance and Green Innovation and the Moderating Role of Green Transformational Leadership

Umar Sadiq and Azam Anwar Khan

Sustainable Business and Society in Emerging Economies, 2025, vol. 7, issue 4, 707-716

Abstract: Purpose: This paper will look at both direct and indirect impacts of the Green Human resource Management (GHRM) practices on the organizational financial performance with a specific focus on the mediating variables, the Environmental Performance, Green Innovation and Green Transformational Leadership. Based on the Resource-Based View (RBV) and the Ability-Motivation-Opportunity (AMO) framework, the research is an empirical study on the role of green-oriented HR practices.Design/Methodology/Approach: Quantitative Analysis method was used in this study through SPSS for demographic characteristics of 300 respondents practicing Green HRM policies in their companies and for model testing SMART PLS is utilized. &Findings: The findings demonstrate that there is a strong and positive direct correlation between GHRM and financial performance and this means that organizations that implement green HR performance realize better financial performances. Moreover, the research findings indicate that Environmental Performance and Green Innovation plays a critical role as the mediator of this relationship implying that waste management, energy savings, and regulatory compliance improvements are significant processes through which GHRM improves financial performance.Implications/Originality/Value: All in all, this research is credible as it has strong evidence to show that GHRM practices directly and indirectly affect financial performance via the most essential organizational and leadership-based processes, which highlights the strategic significance of considering green HR practices and leadership in pursuing long-term financial and environmental sustainability, especially in a developing economy setting.&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&

Keywords: Green Human Resource Management; Environmental Performance; Green Transformational Leadership; Green Innovation; Financial Performance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:sbseec:v:7:y:2025:i:4:p:707-716

DOI: 10.26710/sbsee.v7i4.3519

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