Abstract
In recent years, there has been a growing emphasis on environmental sustainability, resulting in the emergence of Green Human Resource Management (GHRM) practices. Studies have shown that the implementation of GHRM practices can enhance a company's Environmental Performance (EP) and promote the development of Enablers of Green Organizational Culture (EGOC), which can ultimately lead to sustained improvements in environmental performance over the long term. However, there is still a lack of research on Green Workplace Behavior (GWB) and Green Passion (GP). To address this gap, a study was conducted on a large-scale sample of 308 pharmaceutical workers. The study examined the dual mediation impact of major facilitators of Green Organization Culture and GWB on GHRM, and the regulation of GP. Smart Pls 3.0 was used for analyzing the measurement and structural model. The findings indicate that the dual mediation of EGOC and GWB, along with the regulation of GP, significantly enhances the EP levels of organizations. These findings have significant implications for pharmaceutical company managers who are interested in developing strategic HR strategies for sustainable development. The study's results provide guidance on how managers can motivate their employees to engage in green initiatives in their daily activities, and GHRM practices offer a practical way to enhance EP and sustainable development. However, the contribution of Human Resource Management to sustainable development remains limited in the literature. Therefore, it is important for businesses to recognize the significance of environmental sustainability and adopt GHRM practices to improve their EP levels. The environment and natural resources around the world have been severely impacted by the aggressive growth of human economic expansion, and there is an urgent need for social efforts to address this situation. The adoption of GHRM practices can help businesses to develop specialized skills and enhance their contribution to sustainable development. The literature suggests that GHRM practices are a viable and practical solution to enhance environmental performance and promote sustainable development.
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1 Introduction
Contemporary industrialists recognize that securing a steady supply of natural resources is a necessary but insufficient condition for the long-term survival of economies and businesses (Chaudhary, 2020; Kim et al., 2022; Zoogah, 2011). To truly ensure sustainability and competitiveness, smartly planned eco-friendly human resource strategies that enhance an organization's environmental performance (EP) are crucial (Kim et al., 2019). As such, HRM has emerged as a significant factor in improving environmental performance and achieving long-term competitive advantages (Kim et al., 2019; Ren et al., 2018; Renwick et al., 2016). Daily et al. (2012) emphasized that there is a dire need for more empirical evidence on the relationship between green HRMP and firm performance. The development of Green HRM practices (GHRMPs) is a direct response to the green movement's emphasis on disaster preparedness and sustainability promotion in the natural environment (Awan & Raza, 2012; Jamil et al., 2021; Kim et al., 2019; Renwick et al., 2016). There are several ways in which GHRMP may be implemented in a business to help employees learn the specialized skills needed to improve a company's long-term EP (Jaramillo et al., 2019) improve environmental efficiency and performance, GHRMP encourages employees to adopt a more environmentally responsible work ethic (Anwar et al., 2020; Opatha & Arulrajah, 2014; Rubel et al., 2021; Singh & Gupta, 2013). However, the contribution of GHRM toward sustainable development remains scarce as identified by scholars (Aguinis & Giavas, 2012; Jackson et al., 2011; Pfeffer, 2010; Rubel et al., 2021). One additional crucial reason for adopting green HRM practices is to safeguard the organizational culture by implementing environmentally friendly measures. Moreover, it helps in educating and fostering a positive attitude among employees toward environmental sustainability.
It is also pertinent to mention here that there is an ongoing debate among scholars and practitioners on the ways through which green organizational culture itself and other pro-environmental factors concerning it could be meant to improve firms’ EP (Imran et al., 2021). For instance, Hooi et al. (2022) stressed in their study among Taiwanese firms that green organization culture creates a sense of citizenship behavior for the environment in employees that aids in improving firms' EP. Al-Swidi et al. (2021) have highlighted that greener workplace culture has the potential to generate a greener employee eco-behavior that elevates a firm's EP. Scholars (Ali et al., 2021; Muisyo & Qin, 2021) have highlighted a dearth of research on the association between a firm's green culture and EP. According to Al-Swidi et al. (2021), as well as researchers such as Pham et al. (2019) and Kim et al. (2016), it is crucial to conduct additional empirical studies in various industrial contexts to better understand the impact of green HRM on promoting a sustainable organizational culture and encouraging employees to engage in environmentally friendly behaviors. Green passion is a significant pro-environmental factor that resides inherently within individuals who prioritize eco-friendliness. Such individuals consistently strive to develop a greener organizational culture that contributes positively to the firm's environmental performance (Mohammad et al., 2020). This passion motivates them to take actions that benefit the environment, such as reducing waste, conserving energy, and promoting sustainable practices within the organization. Green passion is underexplored in past research, particularly its moderating role in the EP (Roscoe et al., 2019). Passion for a greener environment, such employees have a distinctive presence and they try to persuade others in the workplace for developing a green culture to enhance EP (Jia et al., 2018).
Therefore, we believe that without investigating the intervening role of enablers of green organization culture hereafter referred to as EGOC (message credibility, leader emphasis, peer involvement, and employee empowerment), and other variables such as green passion, and green workplace behavior between GHRMP and EP relationship, the phenomena remain underexplored (Dubey et al., 2017; Roscoe et al., 2019).
In light of the above, the current study is focused to investigate the mechanism through which GHRMP affects EP, through EGOC, GWB, and GP is an area that needs to be further addressed and is among the major aims of this study. To fill these gaps, the following research questions will be addressed in this paper:
How do GHRMP and EGOC impact the firm's EP?
How can GWB and GP affect the relationship between GHRMP, EGOC, and EP of the firm?
We suggest a link between GHRM practices, the EGOC, GWP, and EP in a hypothetical scenario. We surveyed developing countries manufacturers to test our model. Developing countries’ industrial sector has a dismal environmental record and is under pressure to minimize hazardous discharges from its industrial units (Ahmed et al., 2021).
This study particularly linked GHRM practices with environmental performance with the aim of ensuring green work practices and providing a healthy workplace environment for workers’ safety so that they can contribute in an effective way toward organizational success. The study has utilized the Ability, Motivation, and Opportunity (AMO) theory, to explain the theoretical framework in depth. According to the AMO theory, when employees perceive that the organization provides them with adequate resources and support, such as through the implementation of Green HRM practices, they will reciprocate by investing their efforts and utilizing their abilities to achieve organizational goals (Liao et al., 2021). This process of exchange can lead to enhanced employee attitudes and behaviors, which in turn, can positively influence environmental performance. Recent studies have provided further support for this notion. For instance, Chen and Wang (2014) found that Green HRM practices positively influence employee green behavior by creating a supportive psychological climate. Similarly, a study by Fang et al. (2022) found that Green HRM practices positively influence employee environmental performance through their impact on employee abilities and motivation.
Prior studies have focused on examining the direct and indirect effects of Green Human Resource Management Practices (GHRMP) on Environmental Performance (EP). However, studies on dual-mediation in environmental performance literature are limited. To address this research gap, the study developed and tested a dual-mediation model to observe the impact of GHRMP on firm environmental performance. The study selected two effective mediators, namely Enablers of Green Organizational Culture (EGOC) and Green Workplace Behavior, which have not been studied in the previous literature. The study aimed to provide insights into the potential effects of these mediators in the pharmaceutical sector of developing countries, specifically Pakistan. The study's outcomes have significant implications for managers in the pharmaceutical industry who intend to establish strategic HR strategies for sustainable development. The results also provide valuable guidance to managers to stimulate their subordinates to adopt green initiatives in their work routines. Overall, the research adds to our understanding of GHRMP, green organizational culture, green workplace behavior, and passion, and provides substantial implications for both theoretical and practical domains. It is essential to note that the depletion of natural resources and environmental degradation necessitates immediate social efforts to mitigate the situation. The implementation of GHRM practices can help companies acquire specialized skills and enhance their contribution to sustainable development. In summary, GHRMP represents a practical and viable solution to enhance environmental performance and promote sustainable development and hence, is one best way to address Sustainable Development Goals (SDGs) in the developing economies.
1.1 GHRM and EP
Green human resource management (GHRM) aligns environmental objectives with HR actions and primarily focuses on eco-friendly policies, practices, and attitudes held by organizations (Ansari et al., 2021; Gill et al., 2021; Muisyo & Qin, 2021; Paulet et al., 2021). By integrating environmental sustainability standards and company procedures, GHRM can help companies use their resources in an ecologically responsible manner (Chen et al., 2020; Ogbeibu et al., 2020). Efficient completion of activities and responsibilities, as well as the efficient use of resources to meet goals and objectives, determine a company's environmental performance (Riana et al., 2020; Yu et al., 2020). As a company's reputation grows in the marketplace, GHRM procedures can help increase its competitive edge (Santana et al., 2020). Green methods for training and development, learning, hiring, and recruitment can also benefit firms (Hameed et al., 2020; Opatha & Arulrajah, 2014). Customized environmentally awareness training courses can develop workers' abilities to reduce material waste (Simpson & Samson, 2010) and intensify their emotional commitment to the improvement of the business. Green HRM activities have a significantly positive impact on an organization's environmental performance (Arda et al., 2019; Daily et al., 2012).
Green practices, such as legislation assuring the use of renewable resources and the preservation of the natural environment, can promote pro-environmental behavior. For enterprises to properly use their resources, green incentives, workers' environmental-friendly actions, staff retention, and pleasant work-related outcomes must be in place (Obeidat et al., 2020). Senior HR leaders can put a strong emphasis on making environmental standards awareness part of a job description and interview protocol to safeguard organizational eco-objectives that future employees must achieve (Renwick et al., 2013). Berrone and Gomez-Mejia (2009) have reported a strong association between top management compensation and a company's environmental performance.
By enhancing workers' awareness of their responsibilities as members of society, GHRM benefits the company's brand and public image, which is often regarded as good for business. The promotion of environmental conservation through GHRM can have a positive impact on social performance (Rezaei-Moghaddam, 2016). Figure 1 shows the proposed framework. In light of the aforementioned, the following is an initial hypothesis:
H1
GHRMP activities positively influence a firm's environmental performance.
1.2 GHRMP and EGOC
A "green" corporate culture may be characterized as the "values, attitudes, and actions of organizational members concerning the natural environment.” When employees strive not only to pursue profit, but also to try to adverse the negative impact of their operations on the environment and maximize their positive impact, an organization's culture may be portrayed as "green" (Sroufe et al., 2010).
Khammadee et al. (2022) and Pellegrini et al. (2018) emphasized that firms’ GHRM strategy may change employee engagement and behavior to promote organizational green culture for long-term sustainable growth. According to Srinivasan and Kurey (2014), to make the shift from the traditional culture of an organization to a more environmentally conscious culture, there are four components "leadership focus," "message credibility," "employee empowerment," and "peer participation" that need to be addressed. The current study named them as EGOCs, and it is argued that GHRMP plays a vital role in the development of these four EGOCs to mark high on EP.
The GHRM system uses environmental attitudes and abilities as criteria for hiring, requires environmental training, rewards workers for meeting environmental targets, etc., to express the strategic significance of excellent environmental performance. As long as the organization's leaders are committed to implementing its strategic HR Vision, this is achievable. Therefore, a leader who cares about the environment might inspire others to take action on environmental concerns by displaying his environmental passion in the workplace (Azhar et al., 2021. According to Al-Swidi et al. (2021), employees that work for companies with environmentally conscious executives report that they are more likely to adopt more eco-friendly practices because of the influence of their superiors. (Martins et al., 2021) strongly underlined that the HR leadership role is a crucial one, and they must hire individuals who are conscious and have new ideas for making a business more environmentally friendly.
Similarly, management must ensure that their GHRMP includes a strong network throughout the business to successfully convey the company's green vision to all workers to reduce wasteful and ecologically dangerous actions in their day-to-day roles (Chow, 2012; Lin & Ho, 2011). The message delivered through a recognized channel ensures the message’s credibility (Srinivasan & Kurey, 2014). Pellegrini et al. (2018) underlined that GHRM can catalyze a culture of peer involvement in eco-friendly actions and contributes to firm EP.
Green Employee Empowerment (GEE) as a component of EGOC helps the company achieve its environmental objectives (Tariq et al., 2016). When workers are empowered, they may take greater responsibility and make their own choices (Ashraful et al., 2021). It promotes trust, inspiration, decision-making, and boundaries between workers and senior management (Meyerson & Dewettinck, 2012). GHRMP empowers workers by enhancing their skills, knowledge, and motivation for the EP of the firm. The Appelbaum et al. (2000) AMO hypothesis says GHRM policies impact the ability and motivation of workers to achieve green goals, as well as provide the chance for such accomplishments to be made possible at the company level. Studies show that a company's growth will be quicker than the industry average if its staff is empowered. Therefore, because of the above, we propose the next hypothesis:
H2
GHRMP is positively related to EGOC.
1.3 EGOC and green workplace behavior (GWB)
Previous research (Cherian & Jacob, 2012; Daily et al., 2012; Margaretha & Saragih, 2013 ; Chan et al., 2014) has established that Human Resource Management (HRM) practices can serve as a catalyst for the development of a green culture within an organization when they are aligned with sustainability goals. These eco-friendly HR policies have the potential to influence employee behavior at both individual and team levels. To achieve this, HR must develop strategies that motivate workers to align their goals with the organization's core sustainable strategy, which is based on its values and norms. Therefore, Green Work Behavior (GWB) is developed through practices that are deeply ingrained in the organization's culture. These practices change employee behavior to become more eco-friendly, which is then disseminated throughout the organization, creating a common mindset (Sobirin, 2009) and a source of competitive advantage. Moreover, Naqvi and Siddiqui (2019) have emphasized the importance of green behavior among employees in transforming an organization's internal culture and adopting eco-friendly strategies. In line with this, recent studies have highlighted the significance of the alignment of HRM practices with environmental objectives (Ansari et al., 2021), which primarily focuses on the eco-friendly policies, practices, and attitudes held by organizations (Gill et al., 2021; Muisyo & Qin, 2021; Paulet et al., 2021). The efficiency with which an organization completes its activities and responsibilities (Yu et al., 2020) and utilizes resources to meet its goals and objectives (Riana et al., 2020) determine its environmental performance.
Further, the integration of environmental sustainability standards and company procedures and activities is critical to ensure that resources are used in an ecologically responsible manner (Chen et al., 2020; Ogbeibu et al., 2020). Firms can benefit from green practices for training and development, learning, hiring, and recruitment (Hameed et al., 2020; Opatha & Arulrajah, 2014). Additionally, customized environmentally awareness training courses can be designed to develop workers' abilities to reduce material waste (Simpson & Samson, 2010) and increase their emotional commitment to the improvement of the business.
Senior HR leaders have also emphasized the importance of incorporating environmental standards awareness into job descriptions and interview protocols to ensure that organizational eco-objectives are achieved by future employees (Renwick et al., 2013). Additionally, green incentives and workers' eco-friendly actions, staff retention, and positive work-related outcomes must be in place for enterprises to make optimal use of their resources (Obeidat et al., 2020). Moreover, research has shown a strong association between top management compensation and a company's environmental performance (Berrone & Gomez‐Meija, 2009).
In conclusion, HRM practices can act as a driving force for the development of a green culture within an organization, which has a positive impact on both environmental and social performance. By enhancing workers' awareness of their responsibilities as members of society, the GHRM benefits the company's brand and public image (Rezaei-Moghaddam, 2016). Therefore, it is essential for organizations to align their HRM practices with environmental objectives to achieve sustainable development goals.
So, we hypothesized that.
H3
EGOC positively affects green workplace behavior.
1.4 Green behavior and environmental performance
Podsakoff et al. (1997) suggested that workers' behavior improves an organization's environmental performance, and the reasons are also summarized. Workers, for example, not only assist one another with job-related issues and play an active role in communicating information throughout the firm, but the development of new skills can help the firm integrate with environmental stimuli. Several studies empirically studied the association between employee behavior and performance (Uddin et al., 2018; Walz & Niehoff, 2000). They established that employee behavior impacts the financial as well as the environmental performance of the firm. Through a time series analysis, Koys (2001) discovered that restaurant employees' voluntary workplace behavior reflects restaurant earnings also; Nielsen et al. (2009) examined the relationship between workplace behavior and performance in more than 35 studies. They concluded that voluntary workplace behavior is associated with performance. Except for the study by Paillé et al. (2014) and Khan et al. (2019), few studies have observed the connection between employee workplace behavior and EP. Their findings revealed that the workplace behavior of employees is a primary driver of EP. According to Daily (2009), employees' eco-action, such as eliminating waste, should help companies achieve sustainability objectives and achieve overall EP. Similarly, Roy et al. (2013) asserted that eco-friendly behavior that is spontaneous can improve environmental performance by replenishing environmental management systems. So, from the above literature review, we hypothesized that:
H4
Green workplace behavior positively affects the environmental performance of the firm.
1.5 The mediating role of EGOC and green workplace behavior—dual mediation
Dual-mediation of EGOC and GWP in between the relationship of GHRMP and EP is aimed to be investigated. This aspect has not been properly addressed in the existing literature on HR. Individual behaviors that are relatively more eco-sustainable are referred to as green environmental behaviors. Environmentally sustainable behavior and green behavior are synonymous (Osbaldiston & Schott, 2012; Wang et al., 2018). GB is defined as any quantifiable employee behavior that contributes to workplace environmental sustainability (Andersson & Hedman, 2013; Norton et al., 2015; Ones & Dilchert, 2012).
The collective conclusion from the various studies conducted by (Bissing-Olson et al., 2013; Norton et al., 2015; Robertson & Barling, 2015) exposes that voluntary green behavior is a yield of personal green initiatives, other than obligatory duties. Green behavior includes the intention of eco-friendly activities and green policies. The results of studies conducted by (Antonio Ruiz-Quintanilla et al., 1996; Enander & Pannullo, 1990; Kornbluh et al., 1989; May & Flannery, 1995) have been observed that the role of personal behavior is vital for making a firm eco-friendly. Studies conducted in this context have revealed that employee involvement in green activities such as recycling and pollution-reduction programs has a significant impact on the firm's environmental performance (Paillé et al., 2014; Robertson & Barling, 2015).
Green workplace behavior has been considered vital in analyzing the environmental performance of the firm. Some studies reveal those employees practicing voluntary green workplace behavior turn out to be enhancing the eco-friendly output of the firm. Experimental exploration in this regard shows that a company's EP is largely dependent on employee involvement in environmentally friendly activities such as recycling and pollution reduction programs. (Boiral, 2005; Paillé et al., 2014; Ramus, 2001; Robertson & Barling, 2015). This study has considered Ajzen’s (1991) Theory of Planned Behavior to analyze workplace behavior. This theory is among the most noticeable frameworks for explaining the environmental behavior of employees (Bamberg & Möser, 2007). This model reveals the individual behavior and intentions formulated by the attitudes toward behavior and norms (Ajzen, 1991; Rayson et al., 2004). On the bases of this theoretical evidence that behavior is emerged by intention, it is expected that influential factors like green HRM practices, green passion, and green culture shape green behavior. So, green workplace behavior has a significant impact on the environmental performance of the firm. As a result of this literature support, the following hypotheses can be proposed:
H5
EGOC mediates the relationship between GHRMP and the environmental performance of the firm.
H6
Green workplace behavior has a mediating effect on the firm’s environmental performance.
H7
A combined Dual-mediation effect of EGOC and Green workplace behavior between GHRMP and environmental performance of the firm.
1.6 Green passion as moderator
According to Chen, Liu, and He (2015), the presence of green passion can facilitate a positive relationship between employees and their firms. The possession of green passion by an employee can lead to enhanced sustainable performance of the organization, especially when the firm has implemented green HRM systems. Environmental-conscious employees play a crucial role in improving the environmental performance of any organization. Lafrenière et al. (2012) conducted a study to investigate the moderating role of passion and found significant results. The study found that employees’ green passion is related to their green workplace behaviors. It is predicted that employees’ green passion will enhance employee workplace green behaviors for various reasons. First, experiencing a passion for green empowers workers and inspires them to make a difference (Cardon et al., 2009; Rousseau & Vallerand, 2003). Furthermore, it creates motivation to participate in the actions that are the object of the passion for green (Vallerand et al., 2009).
It is crucial for management to understand that an employee's passion for the environment is a prerequisite for engaging in practices that could bring about positive change. When someone is passionate about the environment, he or she feels inner happiness and joy, leading to the nourishment of green behaviors in the workplace (Fineman, 1996; Russell, 2010). Furthermore, a recent study found that passion may play a moderating effect, lending indirect support to the role of green passion as a mediator (Jia et al., 2018). Previous research has also investigated the moderating effect of green passion (Mageau & Vallerand, 2007; Vallerand et al., 2009), providing evidence for the practical moderating effects of green passion.
Thus, we hypothesize that.
H8
The relationship between EGOC and green workplace behavior is positively moderated by green passion.
2 Research methodology
2.1 Scale development
All measurement items for this study were adapted from past literature and adapted to fit the study context. To ensure that the scales were applied to the managers, they were customized to fit the context of our research. Following that, the survey's content validity was assessed by five experienced academics. We receive good and genuine criticism from them, which was helpful for the correctness of the questionnaire. In correspondence with their recommendations and suggestions, we made amendments and incorporated them into the questionnaire. A survey pilot study was then conducted with a total of 60 respondents.
This allowed us to test the robustness of our proposed model before collecting the final data. A 5-point Likert scale was used to assess all of our items. Green Human Resource Management: GHRMP with 15 items and five dimensions by Tang et al. (2018), including green recruitment and selection with three items, green training, and development with three items, green performance management with four items, green pay and reward with three items and green involvement with six items, respectively. EGOC was measured with 20 items, and four dimensions were as it is adopted by Chams and Blandon (2019b). Message credibility, peer involvement, leader emphasis, and employee empowerment with five questions each were measured.
The green Passion scale was adopted. It is considered a single-dimension construct; the scale contains ten items proposed by Robertson and Barling (2013).
The scale of Green workplace behavior was adopted by Robertson and Barling (2013). It measures green workplace behavior with the help of 7 items. Lastly, a single-dimensional scale was adopted from the study of Chams and Blandon (2019a) to measure the environmental performance of the firm. It consists of 8 items that measure the environmental performance of the firm to the best extent.
2.2 Data collection
The pharmaceutical industry was selected for the present study as there exists fierce competition among different companies within the industry and the nature of tasks performed by the employees arise as innovative and extremely sophisticated. The pharmaceutical sector of developing countries, i.e., Pakistan and China has become a transformed industry, as it has seen tremendous growth. Data were collected from the employees of pharmaceutical firms. The unit of analysis was the individual level. It was not possible to collect data from the whole population; therefore, a simple random sampling technique was used to gather data from the employees of pharmaceutical firms. According to PPMA, there are 759 manufacturing units in the country. The biggest contribution in this sector comes from the province of Punjab (57.97%), Sindh (24.11%), and KPK (15%). The remaining contribution (2.8%) is made by China, Balochistan, and AJK.
This study has used Intercontinental Medical Statistics (IMS, 2019) generated ranking list based on the market value of pharmaceutical organizations. Out of the top 150 organizations, 35 are in Punjab, out of which 15 organizations were selected through random sampling. According to Krejcie and Morgan (1970), a sample of 380 respondents is required from a population of 3254 employees. The low response rate in some previous studies had been noticed; therefore, sample size was increased by 40% to undertake the threat of sample attrition (Islam et al., 2011). Therefore, a total of 356 questionnaires were distributed. The current research uses a random sampling procedure. After checking for response sets and missing values, 13 responses were discarded and researchers proceeded with the rest of the 308 usable responses thus giving a response rate of 51.3%. Table 1 shows the descriptive of the respondents.
3 Analysis and findings
The study applies the repeated indicator approach that was needed to estimate all the constructs simultaneously instead of separate estimates of lower-order and higher-order dimensions. The study specifies that the mode of measurement is reflective as the first-order dimensions are reflective of the higher-order dimensions (Chin, 2010; Ringle et al., 2012) for the moderating variable. Furthermore, the model is reflective because the theoretical direction of causality is from constructs to items. Specifically, the measures used in the study are manifestations of constructs; that is, changes in the constructs cause changes in the measures.
The study estimates the model using partial least squares (PLS) path modeling, which can ensure more theoretical parsimony and less model complexity (Wetzels et al., 2009). To be specific, the study applies PLS because this approach is consistent with the objective of the study, which aims to develop and test a theoretical model through explanation and prediction. Indeed, PLS is more suitable for estimating a hierarchical model than covariance-based SEM (CBSEM) because PLS can successfully avert the constraints on distributional properties (multivariate normality), measurement level, sample size, model complexity, model identification and factor indeterminacy (Hair et al., 2012). Smart PLS 3.0 (Ringle et al., 2015) was used to estimate the model with a path weighting scheme for the inside approximation. The study applied nonparametric bootstrapping (Chin, 1998; Efron & Tibshirani, 1993; Tenenhaus et al., 2005) with 5000 replications to obtain the standard errors of the estimates (Hair et al., 2013). As per the guidelines of hierarchical modeling (Becker & Wu, 2010; Chin, 2010), an equal number of indicators were repeatedly used to estimate the scores of first-order constructs and second-order constructs.
3.1 Measurement model
The current study used (CFA), confirmatory factor analysis to gauge the convergent and discriminant validity using SMART PLS 3. Most of the item loadings were above the minimum threshold value of 0.70 and significant at p < 0.00. Both composite reliability (CR) and the average variance extracted (AVE) on all scales were either equal to or exceed 0.80 and 0.50 cut-off values, respectively, (Fornell & Larcker, 1981; Hair et al., 2013) ensuring adequate reliability and convergent validity (Fornell & Larcker, 1981) as shown in Table 2. The variance inflation factor (VIF) ranged between 1.22 and 2.141, which is under the cut-off value of 5 (Richter et al., 2016). Furthermore, to ensure that constructs do not share the same types of items and are conceptually distinct from each other the F& L criterion (Table 3), proved that discriminant validity exists. Secondly, the HTMT criterion as shown in Table 4 was calculated. HTMT values were below 0.90 (Gold & Arvind Malhotra, 2001), and the discriminant validity holds. Overall, the measurement model provides evidence of adequate reliability and validity in terms of both the reflective and formative construct.
Figure 1 shows the measurement model in Smart PLs 3.
3.2 The assessment of the inner model and hypotheses testing procedures
When it has been proven that the outer model fit, the bootstrapping procedure was run in SMART PLS 3 to generate path coefficients, t = values, and significance as reported in Tables 5 and 6. The hypothesis H1 GHRMP has a significant effect on EP (β = 0.614, t = 7.864, p < 0.001). Similarly, hypothesis H2 GHRMP has a significant impact on EGOC (β = 0.823, t = 18.744, p < 0.001). The hypothesis H3 direct impact of EGOC on GWB is substantial at (β = 0.596, t = 9.427, p < 0.001). Lastly, the hypothesis H4 direct impact of GWBC on ED is substantial at (β = 0.258, t = 3.632, p < 0.001). Figure 2 shows the structural model output in Smart PLs 3.
The Q2 value was calculated using PLS prediction. As all the Q2 values were found to be positive, this shows that PLS-SEM models offered a better predictive performance (Hair et al., 2012).
3.3 Testing the mediating effect of EGOC and GWB
Based on the theoretical framework of this study, the mediating result of EGOC has been proposed between GHRMP as a construct and GWB. Smart PLS 3.0 was used to examine the mediating effect. Table 6 presents the results of the hypothesis. The findings suggested that there is a complementary mediation of EGOC with (β = 0.491, t = 7.684, p < 0.001). Therefore, hypothesis H5 was supported. Similarly, results support our hypothesis H6, that there exists complementary mediation of GWB between EGOC and EP with (β = 0.154, t = 2.981, p < 0.05). Therefore, hypothesis H6 was supported (Fig. 3).
3.4 Role of moderating variables
Based on the theoretical framework of this study, the moderating result of GP has been proposed between EGOC and GWB. Smart PLS 3.0 was used to examine the mediating effect. Table 7 presents the results of the hypothesis. The results showed that there is a GP that moderates the relationship between EGOC and GWB (β = 0.046, t = 2.133, p < 0.05). Therefore, hypothesis H8 was supported.
4 Key findings
Firstly, the research concludes that GHRMP (Green Human Resource Management Practices) has a positive impact on a firm's environmental performance. (Chams & García-Blandón, 2019a; Roscoe et al., 2019). Secondly, the study focused on two mediators, namely EGOC (Employee Green Organizational Citizenship) and green workplace behavior, and found that they significantly mediate the relationship between GHRMP and the environmental performance of the firm. (Chams & García-Blandón, 2019a; Roscoe et al., 2019). Thirdly, the GHRMP practices, which include green recruitment and selection, green training and development, green assessment, and green appraisal and reward, were found to significantly improve the EGOC. EGOC was measured through leadership emphasis, message credibility, peer involvement, and employee empowerment. (Chams & García-Blandón, 2019a; Roscoe et al., 2019). Furthermore, the enablers mentioned above encourage employees to proactively reduce waste, consume fewer resources, develop recycling programs, and improve the firm's environmental performance. This hypothesis is also supported by Jackson et al. (2016). The study also analyzed the less-known effect of green passion as a moderator and found that the green passion of employees significantly moderates the relationship between EGOC and green workplace behavior. Lastly, the research established that a "green" organizational culture, measured by the four factors mentioned above, plays a crucial role in the association between GHRMP and company environmental performance. (Jackson et al., 2016). The results of this research are aligned with classic HRM theory and contribute to enhancing the body of knowledge regarding GHRMP. (Chams & García-Blandón, 2019a; Roscoe et al., 2019).
So, in summary, the study suggests that GHRMP practices, including green recruitment and selection, green training and development, green assessment, and green appraisal and reward, improve a firm's environmental performance. These practices encourage employees to engage in green workplace behavior, which is facilitated by a "green" organizational culture. The green passion of employees also plays a significant role in the relationship between EGOC and green workplace behavior. The results of this research align with classic HRM theory and enhance the body of knowledge regarding GHRMP (Chams & García-Blandón, 2019a; Jackson et al., 2016; Roscoe et al., 2019).
4.1 Discussion
In this research, a theoretical framework was developed and tested, in which GHRMP was positively related to environmental performance. EGOC and green workplace behavior mediate the relationship, whereas green passion moderates the relationship between green HRM practices (green recruitment and selection, green training and development, green performance management and appraisal, green reward and compensation, and green empowerment) and firm environmental performance.
The generated findings of the study supported the hypothesized model and thus make a significant contribution to the field of human resource management and environmental sustainability. According to Guerci et al. (2016) and Jabbour and de Sousa Jabbour (2016), the AMO theory is a relevant framework to analyze the impact of GHRMP (Green Human Resource Management Practices) on the sustainable performance of a firm. This research work concludes that GHRMP positively affects the firm’s environmental performance (Guerci et al., 2016; Jabbour & de Sousa Jabbour, 2016). Our findings align with the HRM theory, which highlights the importance of organizational culture in shaping the relationship between GHRMP and firm performance (Ngo & Loi, 2009; Wei et al., 2011). The study mainly focused on the two mediators that are of EGOC (leadership emphasis, peer involvement, employee empowerment, and message credibility) and green workplace behavior, and the results revealed that these variables significantly mediate the relationship between GHRMP and the environmental performance of the firm. The GHRMP namely green recruitment and selection, green training and development, green assessment, and green appraisal and reward were found to significantly improve the (EGOC) measured through leadership emphasis, message credibility, peer involvement, and employee empowerment. This research work proposes that these enablers encourage employees to proactively reduce waste, consume fewer resources, develop recycling programs and, hence, improve the firm's EP, this hypothesis is also supported by Roscoe et al. (2019) and Chams and García-Blandón (2019a). In addition to it, a less-known effect of green passion as a moderator was also analyzed. The result found that the green passion of the employees significantly moderates the relationship between the EGOC and green workplace behavior. The research work is based on social exchange theory and AMO theory. In light of these theories, it has been discussed in the literature review how the GHRMP of the firm enhances the environmental performance and how many factors like EGOC, green workplace behavior, and green passion affect the relationship between GHRMP and EP. Our results have proven that all the hypotheses are empirically true. The study suggested that the GHRMP is positively associated with the EP of the organization. These findings go in line with the results of work performed by Chams and García-Blandón (2019b), which concluded that companies with GHRMP practices have better environmental performance as compared to others. One of the main objectives of this study was to test the dual mediation of the EGOC and green workplace behavior. The dual-mediation model is exercised to test the overall mediation of both the green workplace behavior and EGOC between GHRMP and EP. Results revealed that there exists dual-mediation of EGOC and GWB in between GHRMP and EP. To elaborate on the relationship between GHRMP and environmental performance, some researchers have suggested different sets of HR practices with different mediation paths (Boxall & Macky, 2009). The AMO model promotes an understanding of GHRMP dimensions that briefly explains these mediation paths. For instance, GHRMP promotes abilities like recruitment, selection, and training, making them a stronger antecedent of behavior, whereas motivation enhancement practices, like compensation and incentives, have a significant impact on environmental performance.
Similarly, Roscoe et al. (2019) revealed that firms with GHRMP boost the green culture and ultimately improve the environmental performance of the firm as a whole. Because green workplace behavior is not officially appraised and rewarded, green behavior is essentially influenced by individual opinions regarding organizational green performance resulting from practicing GHRMP. An increasing pace of interest has been observed in the GHRMP’s role in environmental performance and management (Jackson & Seo, 2010; Renwick et al., 2013).
Our research established that a “green” organizational culture (measured here by four factors) plays a key role in the association between GHRMP and company EP. It has been observed by Jackson et al. (2016) that a firm’s environmental performance is in direct relation to the GHRMP. Employees are recruited and trained in greenways and are kept passionate about eco-friendly activities by presenting green incentive that urges their green workplace behavior hence improving firm EP (Jackson et al., 2016); it has also been observed that the EGOC positively mediate the GHRMP–EP relationship. Specifically, this research contributes to classic HRM theory as well as enhances the body of knowledge regarding GHRMP. In the context of HRM theory, the results of this research are aligned with classic HRM assumptions, which can improve firm performance.
The findings of this study are consistent with traditional HRM assumptions that can enrich business performance (Guest, 2011). Arzaman, Omar, and Khalid suggested that there are several advantages for firms in implementing green HRM practices (Arzaman et al., 2018); one of them is the improvement of firm environmental performance (Awan, 2011). In a research work performed by Deshwal (2015), incorporating green HRM can help employees to reduce the cost of their organization. He also observed that the managers practicing GHRMP urge employees’ green workplace behavior. Lastly, our study demonstrates that the adoption of GHRMP practices positively impacts a firm's environmental performance. The study identifies EGOC and green workplace behavior as significant mediators that enhance the relationship between GHRMP and environmental performance. Additionally, the study highlights the crucial role of a "green" organizational culture and employee green passion in promoting green workplace behavior (Jabbour & de Sousa Jabbour, 2016). There are several benefits of incorporating green HRM in an organization. So, the firms should carefully plan the possible methods and budget to adopt GHRMP to enhance the environmental performance of the firm. Employees with eco-friendly intentions can be hired with the help of the green human resource management system, offering green incentives to the workers to enhance their green workplace behavior. Employees with positive green workplace behavior will outlay positive impacts on the sustainable performance of the firm.
5 Conclusion
This study explores the impact of GHRMP on EP in the pharmaceutical firms of a developing country. Initially, the study looked at the importance of GHRMP toward EP. Secondly, the study focused on the dual mediating role of EGOC and GWB in establishing a more EP. Thirdly, the moderating role of GP between EGOC and GWB was also examined.
By doing so, the finding shows that green GHRMP has a significant effect on EP and EGOC. It is also established that EGOC has a significant effect on GWB. Lastly, GWB significantly affects EP. Hence, it could be argued that GHRMP helps firms toward achieving EP. But this relationship is better established in the presence of EGOC and GWB. As could be inferred from the output of the mediation analysis of this research, GHRMP helps in catalyzing EGOC, which further encourages green workplace behavior (GWB) and helps in achieving a more sustainable EP.
Furthermore, the interaction effect of green passion (GP) has a significant impact on GWB outcomes. These findings further suggest that EGOC does enable an environment for a better GWB to leverage firm EP, but in the GP would trigger a stronger GWB for achieving higher levels of EP. In summary, we suggest that implementing GHRMP is one way to respond to sustainable performance, but the role of EGOC and GWB cannot be ignored. Firms need to equally put efforts into selecting the right mix of GHRMP and EGOC to boost green working behavior (GWB) do that sustainable performance could be guaranteed.
6 Theoretical & practical contribution
The study has both theoretical and practical implications. According to (Corley & Gioia, 2011; Von Krogh et al., 2012), theory contribution entails a specific type of research outcome that is capable of providing pioneering insights into a phenomenon that is meticulously valuable for improving organizations. In light of the above, our study offers original insights built on empirical evidence on the relation of GHRM, EGOC, GWB, GP, and EP. GHRM scholars have yet to identify the EGOC, GWB, and GP from an empirical standpoint, and hence, the current work has added significant contribution in this area. To be more explicit, our research not only adds to conventional HRM theories but also further elaborates the GHRMP body of knowledge.
The outcomes of the current work are in line with the past traditional HRM assumptions that HRM facilitates a manufacturing firm's Performance (Guest, 2011; Muisyo et al., 2022; Zhang et al., 2016). Furthermore, this research study examines green organizational culture through four enablers that are necessary for the association between GHRMP and a firm's EP. GHRMP provides a solid foundation for enhancing firms' EP (Jackson et al., 2014). Various environmentally friendly practices such as recruitment, training, assessment, and incentivization also form the basis of EGOC, i.e., “(leadership emphasis, message credibility, peer involvement, and employee empowerment)”. Our research study suggests that the EGOC promotes environmentally friendly activities leading to the development of recycling programs and the consumption of fewer resources which enhance the firm's EP. Consequently, our investigation, while focusing on environmental issues, is consistent with broader assumptions in HR theory (see Chow, 2012; Ngo & Loi, 2009; Wei et al., 2011) that also asserts that organizational culture enablers can influence the affiliation among GHRMP and firm performance.
Our research study states the importance of green passion as employees that possess a passion for environmentally friendly activities are more likely to persuade their co-workers for developing an environmentally friendly culture to enhance EP (Jia et al., 2018). Therefore, the study provides a unique contribution by showing the moderating role of green passion toward EP Roscoe et al. (2019) that has not been explored by the previous literature. Moreover, the study investigated the dual-mediation effect of 4 key EGOC and green workplace behavior among GHRMP on environmental performance. The present study extended the minimum amount of literature on employee motivation related to green workplace behavior (Dumont et al., 2017; Kim et al., 2016).
Additionally, this study's results have some management implications for business practitioners as well. One best possible ways to achieve the organizational environmental objectives is that both the leaders and the subordinates have a clear understanding of the organization's environmental strategies and they share a common environmental vision. This could be achieved firstly by implementing GHRM practices at the strategic level, and secondly by motivating employees (subordinates) through active leadership participation. So, firms that work to protect the environment can gain a competitive edge from employees who are motivated and willing to go the extra mile. In the managerial context, this work can help managers make efforts to motivate their employees to practice green initiatives in their daily activities.
Secondly, HR managers should ensure greener HR practices such as “green recruitment, green training, green assessment, and green appraisal and reward” to develop the EGOC. When HR managers hire environmentally conscious employees and retain them with effective training and management systems, they become the real contributors to firms' EP. These actions will confirm that employees are well aware of the importance of being eco-friendly, and it is embedded in their behavior.
Hence, EGOC practices create an ecologically sound culture that helps in leveraging a company's EP. Managers besides GHRMP should also give equal weight to the development of EGOC, which is essential to improve EP through employee GWB. It is pertinent to mention here managers need to understand, that an eco-friendly culture gives birth to a greener workplace, where employees practice more innovative environmental behavior as they are aware of the fact that they will not be punished by top management for such friendly environmental practices.
Lastly, managers must choose employees who are passionate to make a difference for the organization. These employees should be eco-conscious and have a good network at the workplace. Such employees have the potential to mold the behavior of other employees that could raise the EP o the firm.
Also, this research work includes details on the relation between GHRMP and GB, with the mediating effect of EGOC. It also makes it easier for scholars to describe and teach EGOC in terms of leadership emphasis, message credibility, peer involvement, and employee empowerment. This discussion will make this topic enrich teaching and learning. So, academicians responsible for teaching green organizational culture an insight into this work fruitful in the context of GHRMP that are directly aligned with upcoming managers leading to the display of more GP and GB.
7 Research limitation, future research & implications
The study findings are an essential step toward figuring out how organizations can deploy GHRMP, EGOC & GWB, which are vital for a firm EP. When evaluating the overall usefulness of this study, it is important to remember that certain limitations must be considered as its open avenues for future researchers. Though more than 200 respondents were part of this study, yet sample was limited when compared to overall pharmaceutical firms of developing countries and might limit the generalizability of the outcomes. In terms of the method used in our study, the introduction of double-mediation between the variables of the study is observed for the first time. So, the generalizability of results may be restricted to the developing countries, especially Pakistan. For future work, impact of green values on green human resource management and sustainable performance can also be analyzed. To obtain a complete and thorough understanding of green organizations, and EP different intervening variables should be considered such as leadership style, and green climate. Such factors are crucial for achieving a more detailed and comprehensive perspective of these organizations. Using a set of sustainability cultures in future research studies will expand the comprehension of the ways in which green human resource management practices (GHRMP) support sustainable environmental development. Future studies should also use Covariance-Based SEM modeling approach to test the model and further justify the results statistically. This research has practical relevance for practitioners.
We suggest that managers in pharmaceutical firms must use the right blend of GHRM practices that could effectively help in translating different enablers of the organizational culture such as message credibility, peer involvement, employee empowerment, and increasing leadership emphasis. For Instance, if GHRM practices are communicated consistently and backed up by credible information and facts, it results in creating a sense of shared responsibility among employees. Furthermore, GHRM practices can empower employees by providing them with the necessary tools, resources, and training to take actions that contribute to environmental sustainability (Ashraful et al., 2021). For example, providing employees with training on energy conservation or waste reduction can help them become more knowledgeable and confident in implementing sustainable practices. We suggest that top management must always choose the right blend of GHRM practices and EGOC as they both drive green workplace behavior that improves a firm EP. Given the importance of EGOC (Margaretha & Saragih, 2013), top management should consider the implementation of different dimensions of EGOC such as message credibility, peer involvement, employee empowerment, and increasing leadership emphasis which help in boosting EP. The green passion among employees can have a considerable impact on promoting green workplace behavior and improving environmental performance. Passionate employees are more likely to take action toward environmental sustainability, resulting in increased innovation, better decision-making, and a culture of sustainability in the organization. Passionate employees can also act as advocates for sustainability initiatives, inspiring and motivating others to get involved and contribute to sustainable business practices (Vallerand et al., 2009). Management should recognize that an employee's passion for the environment is a key factor in engaging in practices that promote positive change. When an individual is passionate about environmental sustainability, they experience inner satisfaction and joy, which can lead to the development of green behaviors in the workplace (Russell, 2010).
Data availability
Data could be made available on reasonable request and after approval from the research wing of Feroz Khan Noon Business School, University of Sargodha.
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He, W., Mushtaq, N. & Jan, L. Unlocking the dual black box of GHRMP & EGOC for sustainable environmental performance in developing economies: can green workplace behavior and green passion transmit the real change?. Environ Dev Sustain 26, 16025–16055 (2024). https://doi.org/10.1007/s10668-023-03286-x
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DOI: https://doi.org/10.1007/s10668-023-03286-x
Keywords
- Green human resource practices
- Green environmental performance
- Green organizational culture
- Green workplace behavior
- Green passion