The Moderating Role of Green Process Innovation and The Impact of Green Human Resource Management on Performance of SMEs

Abstract

This study has been conducted purposively to examine the mediation of environmental performance between GHRM and firms’ performance for SMEs. Data was collected from top-level administrative and HR employees of textile sector SMEs in Karachi through an online survey using five Likert scale-adapted questionnaires. The SEM technique was applied using SMART PLS for data analysis. The findings indicated that GHRM practices are positively associated with environmental performance. In fact, with the mediation of environmental performance GHRM practices are also creating a positive impact on the organizational performance of SMEs. Further, there is a need for policy development that urges SMEs to develop through and focus HRM practices for the betterment of the environment and society to make SMEs stable and flourish overall.