THE EMPIRICAL ANALYSIS OF GREEN HRM PRACTICES IN SMALL AND MEDIUM ENTERPRISES (SMES) IN SINDH: A CONTEXT OF COMPANY AND EMPLOYEE OUTCOMES

Abstract

This study investigates Green HRM Practices in manufacturing SMEs in Sindh in the context of Company outcome (Environmental Sustainability) and Employee Outcome (Employees’ Green Performance) with a mediating variable (Employee Green Behavior) within the framework of Ability-Motivation-Opportunity (AMO).This study adopted a quantitative research design using Cross-sectional survey questionnaires which were administered to HR managers/owners and employees from 100 manufacturing SMEs in Sindh to measure GHRM practices, employee green behavior, environmental sustainability, and employee green performance using convenience sampling.The present study applied Hierarchical Component Model (HCM) in the context of PLS-SEM involving on modeling its Higher Order construct (GHRM Practices) by its Lower Order Constructs (GHRM Practices), thereby reducing the number of path model relationship. The results revealed that GHRM exerted significant positive effects on Employee Green Behavior (EGB) (H1: β = 0.568, p = 0.048), employee green performance (H2: β = 0.346, p = 0.023) and environmental sustainability (H3: β = 0.307, p = 0.024). Furthermore, Employee Green Behavior significantly influenced Employee Green Performance (EGP) (H4: β = 0.610, p < 0.001) and Environmental Sustainability (ES) (H5: β = 0.295, p = 0.024). However, the indirect effects of GHRM on EGP (H6: β = 0.347 p = 0.096) and on ES (H7: β = 0.167 p = 0.242) were statistically insignificant, leading to rejection of mediation effect.