Green Human Resource Management Practices and Performance: Testing the Moderating Role of Firm Size Using Evidence from Firms Listed on the Nairobi Securities Exchange, Kenya.

Abstract

The study aimed to establish the moderating effect of firm size on the relationship between green human resource management (HRM) practices and the performance of firms listed on the Nairobi Securities Exchange (NSE). It employed a positivist research philosophy and a cross-sectional research design and was guided by universalistic and contingency theories. A pilot study was conducted in 12 firms not listed on the NSE. Reliability was examined using Cronbach’s coefficient yielding a value of 0.95. Validity was ascertained through peer review by HR experts. A census of the 62 firms listed on the NSE was taken. Primary data was collected using a structured questionnaire and analysed using both descriptive statistics and regression. The results revealed that firm size has a positive and statistically significant moderating effect on the relationship (regression coefficient, 0.386,p-value 0.000<0.05). Therefore, the null hypothesis that firm size has no statistically significant relationship with the performance of the NSE-listed firms, was rejected concluding, that firm size positively moderates this relationship. The results further validate the contingency theory revealing its applicability to green HRM studies. The study recommends further studies to; explore the effect of firm size on the implementation of green HRM and assess the moderating role of firm size on cross-listed firms. The study contributes to green HRM theory and practice and offers insights to HR practitioners and policymakers as they institute green HRM practices.