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Linking green innovation performance and green innovative human resource practices in SMEs; a moderation and mediation analysis using PLS-SEM

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Abstract

Small and medium-sized enterprises (SMEs) play a critical role in countries’ economic growth (specifically developing countries). Such economic growth requires environment-friendly business practices to achieve the green innovation performance goals of SMEs. To examine predictors of green innovation performance, the data were collected from 1121 employees of SMEs in China. Partial least square structural equation modeling (PLS-SEM) through Smart PLS was used to test the proposed relationships. The results showed a significantly positive relationship between green innovative human resource practices, organizational commitment, and innovation performance. Green organizational commitment and transformational leadership have significant effects as mediators and moderators, respectively. Moreover, the enhanced green organizational commitment helps strengthen the relationship between green innovative human resource practices and firms’ innovation performance. This study also makes several theore29tical and practical implications.

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Authors and Affiliations

  1. School of Management, Jiangsu University, Zhenjiang, Jiangsu, China

    Shuja Iqbal, Shamim Akhtar, Jan Muhammad Sohu & Aamir Shafique Khan

  2. Lahore Business School, The University of Lahore, Lahore, Pakistan

    Shuja Iqbal, Farooq Anwar & Arqam Javed Kayani

  3. Faculty of Business Economics and Accountancy, Universiti Malaysia Sabah, Kota Kinabalu, Malaysia

    Arqam Javed Kayani

  4. Department of Business Administration, Sukkur IBA University, Sukkur, Pakistan

    Jan Muhammad Sohu

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  1. Shuja Iqbal
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Correspondence to Shuja Iqbal.

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Institutional Review Board Statement

The study was conducted according to the guidelines of the Declaration of Helsinki. The review board of “blinded for review” university exempted the research for ethical approval, as it is a survey-based study. The study obtained the employees’ consent working in the SMEs, and they filled the questionnaires willingly.

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Appendix 1: Measurement Scales

Appendix 1: Measurement Scales

Green Innovative Human Resource Practices

  1. 1)

    This company prefers green selectivity in hiring.

  2. 2)

    The company prefers selection for green expertise and skills.

  3. 3)

    The company prefers green selection for future potential.

  4. 4)

    The company offers green profit sharing programs for its employees.

  5. 5)

    The company offers green incentive pay.

  6. 6)

    The company establishes the link between green performance and rewards.

  7. 7)

    The company have green developmental focus.

  8. 8)

    The company focuses on green results-based appraisal.

  9. 9)

    The company focuses on green behaviour-based appraisal.

Green Organizational Commitment

  1. 1)

    I feel emotionally attached to this firm’s environmental goals.

  2. 2)

    I feel a strong sense of belonging to my firm’s environmental goals.

  3. 3)

    One of the major reasons why I do not leave this firm is that I feel a sense of moral obligation to follow its environmental goals.

  4. 4)

    If I got another offer for a better job elsewhere I would not feel it was right to leave my firm because of its environmental goals.

  5. 5)

    Too much in my life would be disrupted if I decided I wanted to leave my firm now because I feel attached to its environmental obligations.

  6. 6)

    It would be very hard for me to leave my firm right now, even if I wanted to because of its environmental goals.

  7. 7)

    I am not afraid of what might happen if I quit my job without having another one lined up due to the environmental goals.

Green Innovation Performance

  1. 1)

    The company chooses the materials of the product that produce the least amount of pollution for conducting the product development or design.

  2. 2)

    The company would circumspectly deliberate, whether the product is easy to recycle, reuse, and decompose for conducting the product development or design.

  3. 3)

    The manufacturing process of the company effectively reduces the emission of hazardous substances or waste.

  4. 4)

    The manufacturing process of the company reduces the consumption of water, electricity, coal or oil.

Green Transformational Leadership

  1. 1)

    We provide subordinates a clear environmental vision.

  2. 2)

    We encourage subordinates to work on environmental plan.

  3. 3)

    We encourage employees to attain environmental goals.

  4. 4)

    We consider environmental beliefs of my subordinates.

  5. 5)

    We stimulate subordinates to think & share their green ideas.

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Iqbal, S., Akhtar, S., Anwar, F. et al. Linking green innovation performance and green innovative human resource practices in SMEs; a moderation and mediation analysis using PLS-SEM. Curr Psychol 42, 11250–11267 (2023). https://doi.org/10.1007/s12144-021-02403-1

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