Effects of green human resource management on green innovation through green human capital, environmental knowledge, and managerial environmental concern

Abstract

The current literature in the environmental management domain proposes that employee behaviour is essential to enhancing environmental outcomes, but few studies have examined how human resource management (HRM) is linked with the green innovation of organisations. The study aims to investigate the interrelationship between green human resource management and green innovation in the hotel industry through the mediation of green human capital and environmental knowledge and moderation of managerial environmental concerns (MEC). The study was conducted on 209 participants from several occupational levels, including frontline workers, entry-level management, middle management, and top management employees of various hotel chains in Pakistan. Data were collected through stratified random sampling and analysed using the partial least structural equation modelling (PLS-SEM) technique. Resultantly, GHRM positively contributed to the green innovation of organisations. The mediating roles of green human capital and environmental knowledge were also statistically significant. Furthermore, the results reveal that the link between GHRM and green human capital is stronger with MEC as a moderator. The study contributes to the body of knowledge by investigating environmental protection based on the human capital theory through empirical evidence on hypothesised relationships. Moreover, the study extends the GHRM scope by adding predictors such as environmental knowledge for efficient hotel industry performance.

Introduction

Numerous environmental concerns have been raised due to rapid economic progress and development (Y. J. Kim, Kim, Choi, & Phetvaroon, 2019; Watson & Tidd, 2018). The hotel industry's actions may create environmental constraints, such as loss of natural resources, climate change, and discharge of different environmental toxins which cause water, air, light, and sound pollution and wildlife extinction. Various firms and governments have recognised the significance of environmental sustainability for economic and social development. The topic creates a need for public attention towards the environmental or green issues, which include conversion, recycling, and renewable sources of energy (Ecer, Pamucar, Mardani, & Alrasheedi, 2021). Industries attempt to follow environmentally responsible behaviours following pressure from corporate, stakeholders, and environmental rules (Paillé, Boiral, & Chen, 2013). The GHRM is a strategy to increase its popularity and achieve environmental objectives (Guerci, Longoni, & Luzzini, 2016; Tang, Chen, Jiang, Paille, & Jia, 2018). In order to gain a competitive edge and the best environmental performance, GHRM practices have become essential for innovativeness, which affects customer satisfaction, trust, credibility, and preference in the hotel industry (Hollebeek & Rather, 2019; E.; Kim, Tang, & Bosselman, 2019; Yen, Teng, & Tzeng, 2020).

Multiple industries (specifically the hotel industry) have performed considerable green efforts, such as water and energy conversion, waste reduction, addressing food waste, and educating workers and customers about the issues (Bohdanowicz, Zientara, & Novotna, 2011; Darvishmotevali & Altinay, 2022; Pham, Hoang, & Phan, 2019; Rahman, Reynolds, & Svaren, 2012). Furthermore (Yong, Yusliza, & Fawehinmi, 2019), noted that scholars began emphasising greening at work from 2007 onwards. Earlier studies demonstrated that large hotel chains have managed to effectively minimise their water and energy use between 2009 and 2014 by adopting operational goals, rules, and eco-friendly programmes. Consequently, the initiatives encourage businesses in other sectors to promote a culture that cultivates environmental preservation.

Several researchers highlighted the subject by outlining the impact of green HRM practices (green involvement and training, green performance and green hiring, and compensation) on environmental outcomes (Yong, Yusliza, & Fawehinmi, 2019; Zhang, Luo, Zhang, & Zhao, 2019). The practices demonstrate the industry's commitment to environmental protection, which could enhance its long-term reputation and performance environmentally (Tang et al., 2018). According to (Yang, Wang, Huang, & Chen, 2022), human intelligence, human skills, and human capacities are the most crucial factors in organisations to gain a competitive advantage. Ahmad, Salamuddin, and Surat (2022) stated that people are either born with inborn abilities or acquire them through learning where the latter eventually change them into human capital if they are given more attention.

Training and development, HRM, and incentives are ways to gain or attain green HRM. Employees can be more constructively connected with environmental concerns with greater environmental knowledge and their significant role in protecting the environment. According to Irani & Kiliç, 2022, knowledge-based training programmes will increase the personnel skills that could be encouraged in numerous operations in the industry by hiring environmentally concerned people to consistently and successfully teach other workers. Environmental knowledge involves the process of finding, capturing, producing, and implementing information to develop organisational performance and enhance competitiveness as an innovative strategy (Pham, Thanh, Tučková, & Thuy, 2020).

A recent study discovered that GHRM increases the skills of the human capital and the MEC of an industry, which affects organisational performance (Fawehinmi, Yusliza, Mohamad, Faezah, & Muhammad, 2020) and sustainable innovation progress (Roscoe, Subramanian, Jabbour, & Chong, 2019). Thus, studies should examine how environmental knowledge with the aid of green human capital impacts corporate green innovation. Despite being one of the most critical factors (Brookes & Altinay, 2017), the employees with no knowledge of environmental concerns fail to develop attitudes and behaviours to handle the environmental issues. Specifically, the study aims to demonstrate how GHRM influences corporate green innovation by converting employees into green human capital through MEC to improve environmental knowledge. The reasons for the research model development are: First, from the GHRM perspective, HR applications can support green inventions or courses of action in the industry. Second, based on the human capital theory, GHRM accompanies human capital and effective environmental knowledge, which increases green innovation in the industry. Third, the HRM of industries that experience environmental issues profoundly impacts the implication of management environmental exercises that ultimately leads to green innovation.