The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study

Abstract

This study aims at investigating the linkage between green human resource management bundle practices and green supply chain management (i.e. external and internal practices), as well as their impact on the Triple Bottom Lines of sustainability performance (i.e. environmental, social, and economic performance). A quantitative method is applied in which data is collected from a customized survey with 121 firms functioning in the most pollutant manufacturing sectors (i.e. food, chemical, and pharmaceutical sectors) in Palestine. The data analysis was conducted using the partial least squares structural equation modeling. The results from data analysis show that both of green human resource management and green supply chain management practices have a positive effect to sustainable performance in a joint manner. In fact, the results revealed that green human resource management practices have a direct effect on the sustainable performance, with the green supply chain management practices mediating this effect. In particular, internal green supply chain management practices positively mediate between green human resources management practices and sustainable performance, whereas external green supply chain management practices mediate only the relationship between GHRM bundle practices and environmental dimension of sustainable performance, thus suggesting absence of awareness among manufacturers regarding the effectiveness of this type of GSCM practices for an improved economic and social dimensions of sustainable performance, and calling for more attention from green training programs. This study is considered as the first empirical study exploring the impact of green human resource management and green supply chain management on components of sustainable performance in Palestine, adding great value to the current green human resource management-green supply chain management literature via responding to recent calls to test the combined impact of both practices on TBL of sustainability performance. At the end, the theoretical and managerial implications, limitations of the current study and future research directions have been discussed.