Does Green Human Resources Management Enhance Sustainable Performance? An Empirical Study from Manufacturing Firms

Does Green Human Resources Management Enhance Sustainable Performance? An Empirical Study from Manufacturing Firms

Pham Thi Thu Hien^*

Faculty of Administration, School of Economics, Hanoi University of Industry

^*Corresponding author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90400089

Received: 27 March 2025; Accepted: 31 March 2025; Published: 30 April 2025

ABSTRACT

Corporate sustainability has become a strategic priority for enterprises, yet the role of Green Human Resource Management (GHRM) in enhancing sustainable performance remains underexplored. This study investigates how GHRM practices—green recruitment, green training, and green performance management—impact the three dimensions of sustainable performance: environmental, economic, and social performance. Using a quantitative research approach, data were collected from 121 manufacturing enterprises in Hanoi and analyzed using Smart PLS 4 software. The results confirm that all three GHRM components positively contribute to corporate sustainability, with green recruitment having the strongest impact on economic performance, while green training and green performance management significantly influence social and environmental performance. These findings provide empirical evidence supporting GHRM as a strategic driver for sustainable business development. The study contributes to the growing body of literature on sustainable HRM and offers practical insights for firms seeking to integrate sustainability into their HR strategies.

Keywords: green human resource management, corporate sustainable performance, Hanoi.

INTRODUCTION

In recent years, sustainable development has become a global priority, driven by growing environmental concerns, resource depletion, and the need for long-term economic and social stability (Abdullah & Thurasamy, 2015; Diabat & Govindan, 2011). Governments, industries, and organizations worldwide have faced increasing pressure to adopt sustainable practices that balance economic growth with environmental and social responsibility (Ayuso et al., 2014). Within this context, manufacturing firms play a crucial role, as they are often associated with high levels of resource consumption and environmental impact. Achieving sustainability in the manufacturing sector requires a strategic shift towards eco-friendly practices, where human resource management can serve as a key enabler.

Green Human Resource Management (GHRM) has emerged as a vital approach to integrating sustainability into business operations (Amrutha & Geetha, 2020; Jabbour & de Sousa Jabbour, 2016). By incorporating environmentally friendly practices into recruitment, training, performance management, and employee engagement, GHRM fosters a corporate culture that supports sustainable development (Ren et al., 2018). For manufacturing firms, effective GHRM strategies not only enhance environmental performance by reducing waste and emissions but also improve economic and social performance through increased efficiency and employee commitment to sustainability. As companies navigate the transition towards greener operations, understanding the impact of GHRM on sustainable performance becomes essential for long-term competitiveness and regulatory compliance (Zaid et al., 2018).

Despite the growing interest in Green Human Resource Management (GHRM) and its potential impact on corporate sustainability, several research gaps remain. First, while existing studies have explored the relationship between GHRM and environmental performance (Roscoe et al., 2019; Singh et al., 2020), limited attention has been given to its comprehensive influence on all three pillars of sustainability: environmental, economic, and

social performance. Second, most prior research has focused on developed economies (Yong et al., 2020; Zaid et al., 2018), leaving a gap in understanding how GHRM functions in emerging markets, where regulatory frameworks, resource availability, and organizational commitment to sustainability may differ. Third, there is a need for more empirical evidence on the specific mechanisms through which different dimensions of GHRM such as green recruitment, training, and performance management contribute to sustainable outcomes, particularly in manufacturing firms that face high environmental pressures (Aftab & Veneziani, 2024; Yong et al., 2020). Addressing these gaps will provide a more holistic understanding of the role of GHRM in driving sustainable performance and offer valuable insights for both academia and industry practitioners.

To address these research gaps, this study adopts a quantitative approach to examine the impact of Green Human Resource Management (GHRM) on sustainable performance in manufacturing firms. The conceptual framework is developed, identifying key GHRM practices—including green recruitment, green training, and green management performance—as potential drivers of sustainability outcomes.

LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

Study by Hadjri et al. (2019) explored the effect of Green Human Resource Management (GHRM) on the environmental performance of PAUD schools, emphasizing the role of an environmentally friendly organizational culture as a mediating factor. GHRM encompasses practices such as green recruitment, training, performance appraisal, and incentives that promote environmental sustainability. An environmentally friendly organizational culture is characterized by shared values and behaviors that support environmental initiatives within educational institutions. Utilizing a quantitative approach with surveys and analyzing data through Structural Equation Modeling (SEM), the findings reveal that GHRM significantly influences environmental performance, both directly and indirectly through the organizational culture. Study by Abdullahi et al. (2024) examined the relationship between Green Human Resource Management (GHRM) practices and environmental performance (ENVP) in organizations, highlighting the mediating role of employee commitment (EMPC) and the moderating effect of organizational culture (ORGC). It finds that GHRM positively influences ENVP both directly and indirectly through EMPC, which helps translate sustainability strategies into effective outcomes like resource conservation. Additionally, a supportive ORGC enhances the impact of GHRM on achieving sustainability goals. The research underscores the importance of integrating GHRM with a positive organizational culture to improve environmental outcomes, providing valuable insights for policymakers and leaders in aligning practices with global sustainability objectives .

From the argument above, the authors propose the following hypotheses:

H1: GHRM has a positive impact on EP.

H1a: GH has a positive impact on EP.

H1b: GT has a positive impact on EP.

H1c: GPM has a positive impact on EP.

The study by Ghouri et al. (2020) investigated the impact of Green Human Resource Management (GHRM) practices on Environmental Performance (EP) and Business Performance (BP) in Malaysian manufacturing industries. The research found a significant relationship between GHRM and EP, as well as between EP and BP. EP was also found to mediate the relationship between GHRM and BP. The study suggests incorporating GHRM practices and culture in the workplace to encourage positive green behavior in employees, ultimately increasing EP and BP. The research highlights the importance of GHRM in enhancing environmental and business performance in the manufacturing sector. green recruitment enables firms to attract employees with the right mindset and skills for sustainable development strategies, thereby reducing training costs and facilitating adaptation to eco-friendly production processes (Shah et al., 2021). Additionally, green training enhances employees’ awareness and capabilities in resource efficiency, minimizing waste and optimizing workflows, which in turn improves economic performance (Carballo-Penela et al., 2023)

H2: GHRM has a positive impact on EcP.

H2a: GH has a positive impact on EcP.

H2b: GT has a positive impact on EcP.

H2c: GPM has a positive impact on EcP.

Green Human Resource Management (GHRM) enhances social performance (SP) by fostering employee well-being, promoting ethical labor practices, and strengthening corporate social responsibility (CSR) (Malik et al., 2021). Green recruitment and training cultivate a workforce committed to sustainability and ethical behavior, while sustainable workplace initiatives improve job satisfaction and employee engagement. Additionally, GHRM encourages businesses to adopt fair labor practices, support diversity, and engage with local communities, enhancing corporate reputation and stakeholder trust (Jiang et al., 2024). By integrating GHRM, firms create a more ethical, inclusive, and socially responsible work environment, contributing to long-term sustainability.

H3: GHRM has a positive impact on SP.

H3a: GH has a positive impact on SP.

H3b: GT has a positive impact on SP.

H3c: GPM has a positive impact on SP.

Research model is presented below (see Fig.1)

METHODOLOGY

Data collection

To examine the impact of Green Human Resource Management (GHRM) on sustainable performance, this study employs a quantitative research approach based on survey data collected from manufacturing firms in Hanoi, Vietnam. The target respondents were HR managers, and senior executives responsible for sustainability initiatives within their organizations. The survey was distributed to 200 manufacturing firms in Hanoi, Vietnam, targeting HR managers, sustainability officers, and senior executives responsible for sustainability initiatives. After data screening and validation, 121 valid responses were collected, ensuring a sufficient sample size for analysis. The survey was conducted from October 2024 to January 2025.

Building scales

The measurement scales used in this study were adated from previous research to ensure validity and reliability. The constructs for Green Human Resource Management (GHRM) and sustainable performance were measured using well-established scales from prior studies, with modifications to fit the manufacturing sector context. GHRM scales including three dimension was adopted from Zaid et al. (2018), Shah et al. (2021). Sustainable performance scales including three components was adopted from Zaid et al. (2018), Singh et al. (2020). All items were rated on a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). Before full-scale data collection, the measurement instrument was pre-tested with academic experts and practitioners to ensure clarity and relevance.

RESULT

Reliability, convergent, and discriminant validity

The table presents the reliability and validity indicators for the constructs used in this study, including Cronbach’s Alpha, Composite Reliability (CR), Average Variance Extracted (AVE), and Maximum Shared Variance (MSV). The Cronbach’s Alpha values for all constructs exceed 0.7, indicating good internal consistency and ensuring that the items within each construct reliably measure the intended concept. Similarly, the Composite Reliability (CR) values are all above 0.7, confirming strong construct reliability. In terms of convergent validity, the Average Variance Extracted (AVE) values exceed 0.5 for all constructs, demonstrating that more than half of the variance in each construct is explained by its indicators. Lastly, the Maximum Shared Variance (MSV) values are lower than their corresponding AVE values, confirming discriminant validity and ensuring that each construct is distinct from others in the model. These results support the robustness and reliability of the measurement model (See Table 1)

Table 1. Reliability, convergent, and discriminant validity

Hypotheses testing

The hypothesis testing results (see Table 2) confirm that Green Human Resource Management (GHRM) practices positively influence sustainable performance across environmental, economic, and social dimensions. Specifically, green hiring (GH) has the strongest impact on economic performance (EcP) (estimate = 0.329), followed by social performance (SP) (estimate = 0.174) and environmental performance (EP) (estimate = 0.171). Similarly, green training (GT) contributes positively to all three dimensions, with the highest effect on SP (estimate = 0.219), followed by EP (estimate = 0.183) and EcP (estimate = 0.139). Green performance management (GPM) also shows a significant impact, particularly on EP (estimate = 0.211), suggesting that firms implementing structured performance evaluation systems for green initiatives achieve better environmental outcomes. All relationships are statistically significant, with p-values below 0.05, confirming the robustness of these effects.

Regarding model fit, the results indicate an overall acceptable fit. The chi-square/df ratio is 1.956, which falls within the recommended range (below 3), and the RMSEA value of 0.059 suggests a good fit. The GFI of 0.867 is slightly below the ideal threshold of 0.9 but remains acceptable. However, the TLI (0.540) and CFI (0.737) are relatively low, indicating room for improvement in model specification or variable measurement. These results suggest that while the model supports the theoretical relationships between GHRM and sustainable performance, refinements could enhance its overall explanatory power and fit.

Table 2. Hypotheses testing

DISCUSSION AND IMPLICATION

Discussion

The findings of this study provide empirical evidence supporting the positive impact of Green Human Resource Management (GHRM) on sustainable performance. The results confirm that all three dimensions of GHRM—green hiring (GH), green training (GT), and green performance management (GPM)—significantly enhance environmental, economic, and social performance.

First, green hiring (GH) shows the strongest impact on economic performance (EcP), indicating that recruiting employees with environmental awareness and sustainability skills contributes to cost reduction, operational efficiency, and long-term profitability. Additionally, GH positively influences social and environmental performance, suggesting that sustainable recruitment practices create a workforce that aligns with corporate social responsibility (CSR) goals and environmental regulations.

Second, green training (GT) plays a crucial role in improving sustainable performance, with the highest effect on social performance (SP). This suggests that employees trained in sustainability practices are more engaged in ethical decision-making, workplace safety, and corporate social responsibility initiatives. Furthermore, GT positively affects environmental and economic performance by equipping employees with the knowledge and skills to implement eco-friendly practices and optimize resource use.

Third, green performance management (GPM) is particularly influential in enhancing environmental performance (EP), as organizations that integrate sustainability into their performance evaluation systems are more likely to improve environmental outcomes. GPM also positively affects social and economic performance, reinforcing the importance of aligning employee evaluation systems with sustainability objectives.

Despite these positive effects, the model fit indicators suggest room for improvement in measurement and structural relationships. The relatively low TLI (0.540) and CFI (0.737) indicate that future studies could refine scale development and incorporate additional moderating or mediating variables to strengthen the model’s explanatory power.

Overall, this study highlights the critical role of GHRM in driving sustainable performance and provides valuable insights for manufacturing firms aiming to integrate sustainability into their HRM practices. Firms should prioritize green hiring, training, and performance management to enhance environmental responsibility, social well-being, and economic resilience. Future research could further explore the long-term impact of GHRM on firm performance and examine contextual factors that may influence these relationships.

Implication

From a theoretical perspective, this research contributes to the literature by demonstrating the mechanisms through which GHRM influences sustainable performance. It provides empirical validation for the role of HRM in sustainability, bridging gaps in previous studies that lacked comprehensive empirical evidence. Additionally, the study underscores the need to further refine conceptual frameworks that link HRM practices with sustainability outcomes.

For practitioners, the findings offer actionable insights for manufacturing firms aiming to improve their sustainability performance. Organizations should prioritize green recruitment strategies to attract talent with environmental awareness, invest in sustainability-focused training programs, and integrate sustainability metrics into performance evaluation systems. These measures can help firms achieve operational efficiency, regulatory compliance, and corporate social responsibility goals.

CONCLUSION AND FURTHER RESEARCH

This study aimed to examine the impact of Green Human Resource Management (GHRM) on sustainable performance in manufacturing firms. By addressing the research questions on how green hiring, green training, and green performance management contribute to environmental, economic, and social performance, the findings provide empirical evidence confirming the positive relationship between GHRM and corporate sustainability. The results demonstrate that green hiring plays a crucial role in enhancing economic performance, while green training and green performance management significantly improve environmental and social performance. These findings align with the study’s objective of validating the role of GHRM as a strategic approach to achieving sustainability in manufacturing enterprises.

Although this study contributes to understanding the relationship between HRM and sustainability, its scope is limited to manufacturing firms in Hanoi. Future research should expand to different industries and regions to enhance the generalizability of these findings. Additionally, further investigation into the long-term impact of GHRM practices and the influence of contextual factors such as industry regulations and technological advancements could provide deeper insights into sustainable HRM strategies.

REFERENCE

1. Abdullah, M., & Thurasamy, R. (2015). An exploratory study of green supply chain management practices and supply chain integration among Malaysia manufacturing firms. Aust. J. Basic Appl. Sci, 9(37), 50-56.
2. Abdullahi, U., Al-Amrani, K. A. D., Mohamed, A. M., Khalid, M. S., & Yahaya, H. D. (2024). Green Human Resource Management and Environmental Performance: The Mediating Role of Employee Commitment and the Contingent Effect of Organizational Culture. Journal of Management World, 2024(4), 484-497.
3. Aftab, J., & Veneziani, M. (2024). How does green human resource management contribute to saving the environment? Evidence of emerging market manufacturing firms. Business Strategy and the Environment, 33(2), 529-545.
4. Amrutha, V., & Geetha, S. (2020). A systematic review on green human resource management: Implications for social sustainability. Journal of Cleaner production, 247, 119131.
5. Ayuso, S., Rodríguez, M. A., García-Castro, R., & Ariño, M. A. (2014). Maximizing stakeholders’ interests: An empirical analysis of the stakeholder approach to corporate governance. Business & society, 53(3), 414-439.
6. Carballo-Penela, A., Ruzo-Sanmartín, E., Álvarez-González, P., & Paillé, P. (2023). How do GHRM practices influence firms’ economic performance? A meta-analytic investigation of the role of GSCM and environmental performance. Journal of Business Research, 165, 113984.
7. Diabat, A., & Govindan, K. (2011). An analysis of the drivers affecting the implementation of green supply chain management. Resources, Conservation and Recycling, 55(6), 659-667.
8. Ghouri, A. M., Mani, V., Khan, M. R., Khan, N. R., & Srivastava, A. P. (2020). Enhancing business performance through green human resource management practices: an empirical evidence from Malaysian manufacturing industry. International Journal of Productivity and Performance Management, 69(8), 1585-1607.
9. Hadjri, M. I., Perizade, B., & Farla, W. (2019). Green human resource management, green organizational culture, and environmental performance: An empirical study. Paper presented at the 2019 International Conference on Organizational Innovation (ICOI 2019).
10. Jabbour, C. J. C., & de Sousa Jabbour, A. B. L. (2016). Green human resource management and green supply chain management: Linking two emerging agendas. Journal of cleaner production, 112, 1824-1833.
11. Jiang, Y., Zaman, S. I., Jamil, S., Khan, S. A., & Kun, L. (2024). A triple theory approach to link corporate social performance and green human resource management. Environment, development and sustainability, 26(6), 15733-15776.
12. Malik, S. Y., Hayat Mughal, Y., Azam, T., Cao, Y., Wan, Z., Zhu, H., & Thurasamy, R. (2021). Corporate social responsibility, green human resources management, and sustainable performance: is organizational citizenship behavior towards environment the missing link? Sustainability, 13(3), 1044.
13. Ren, S., Tang, G., & E Jackson, S. (2018). Green human resource management research in emergence: A review and future directions. Asia Pacific Journal of Management, 35, 769-803.
14. Roscoe, S., Subramanian, N., Jabbour, C. J., & Chong, T. (2019). Green human resource management and the enablers of green organisational culture: Enhancing a firm’s environmental performance for sustainable development. Business Strategy and the Environment, 28(5), 737-749.
15. Shah, S. M. A., Jiang, Y., Wu, H., Ahmed, Z., Ullah, I., & Adebayo, T. S. (2021). Linking green human resource practices and environmental economics performance: the role of green economic organizational culture and green psychological climate. International Journal of Environmental Research and Public Health, 18(20), 10953.
16. Singh, S. K., Del Giudice, M., Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological forecasting and social change, 150, 119762.
17. Yong, J. Y., Yusliza, M. Y., Ramayah, T., Chiappetta Jabbour, C. J., Sehnem, S., & Mani, V. (2020). Pathways towards sustainability in manufacturing organizations: Empirical evidence on the role of green human resource management. Business Strategy and the Environment, 29(1), 212-228.
18. Zaid, A. A., Jaaron, A. A., & Bon, A. T. (2018). The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study. Journal of cleaner production, 204, 965-979.