Abstract

The purpose of this study is to investigate the relationship between green human resource management bundle practices and green innovation and their impact on sustainability performance as measured by the Triple Bottom Lines (i.e., environmental, social, and economic performance). It is decided to use a quantitative approach in order to collect data from 335 small- and medium-sized (SMEs) businesses operating in the Kingdom of Saudi Arabia, through a customized survey. Structure equation modeling was applied through smart PLS to analyze the collected data. Results show that green human resource management bundle practices have a positive and significant impact on the sustainable performance of SMEs. Furthermore, results indicate that green innovation has a significant impact on sustainable performance and green innovation partially mediates the relationship between green human resource practices and sustainable performance of SMEs. This study demonstrates that the implementation of GI by firms can be enhanced through the use of GHRM, which, in turn, would enhance the firms’ sustainability. Additionally, this study both confirms and enhances the traditional understanding. The study also depicts that environmental management practices in the human resource and innovation sectors can result in greater sustainability.

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