Green Human Resources Management on Business Performance: The Mediating Role of Green Product Innovation and Environmental Commitment

Abstract

This study aims to empirically examine and analyze the role of Green Human Resource Management (GHRM) and Environmental Management (EM) on Business Performance (BP) mediated by Green Product Innovation (GPI) and Environmental Commitment (EC). This study involved managers in creative industry companies in DKI Jakarta, Indonesia. From the survey conducted, the researchers obtained the research data from 275 questionnaires distributed. Then from all the data, there were 209 questionnaires that could be processed for further analysis. This study utilized the Structural Equation Model (SEM) analysis technique with PLS 23 software in the data testing process. This study has confirmed a number of findings including: Green Human Resource Management (GHRM) has a positive effect on Business Performance (BP); (2) Green Human Resource Management (GHRM) has a positive effect on Environmental Commitment (EC), (3) Green Human Resource Management (GHRM) has a positive effect on Green Product Innovation (GPI); (4) Environmental Commitment (EC) has a positive effect on Business Performance (BP); (5) Green Product Innovation (GPI) has a positive effect on Business Performance (BP); (6) Environmental Commitment (EC) mediates the effect of Green Human Resource Management (GHRM) on Business Performance (BP); (7) Green Product Innovation (GPI) mediates the effect of Green Human Resource Management (GHRM) on Business Performance (BP).