Exploring the Impact of Green Human Resource Management on Corporate Financial Sustainability: The Mediating Role of Employee Eco-Innovation

Abstract

This paper explores how the practices of a Green Human Resource Management (GHRM) are connected to Corporate Financial Sustainability (CFS) and the mediator between the two is the eco-innovation of employees. A quantitative and cross-sectional research design was applied to gather data on 391 employees operating in manufacturing and service-sector organizations involved in the sustainability initiatives. GHRM, eco-innovation and financial sustainability were quantified on validated scales in a structured questionnaire. Data analysis was done through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that the GHRM practices have positive impacts on the eco-innovation and financial sustainability of employees. Additionally, eco-innovation partly moderates the connection between GHRM and financial sustainability which implies that green HR programs positively influence financial performance because they facilitate the development of innovative environmental patterns among employees. The work has a contribution to sustainability and HRM literature as it gives empirical data on the strategic importance of GHRM in realizing financial resilience. To inform practitioners and scholars, implications, limitations, and directions of future research are discussed.