The nexus between green HR practices and firm sustainable performance in Saudi Arabia manufacturing industry: The role of green innovation and green transformation leadership

Abstract

Environment concerns are now important for every business, especially manufacturing concerns due to imposing regulation regarding ecological performance. The quantitative study aims to investigate the impact of factors including green performance management and appraisal, green training and development and green compensation and reward on firm sustainable development of the manufacturing sector in Saudi Arabia. Furthermore, determine the mediating role of green innovation and green transformation leadership. Therefore, the role of these variables in causing actions of sustainability, through the purposive sampling we applied the administration of an online questionnaire to a sample of 350 employees of different levels from 40 manufacturing concerns. The study findings discovered that green human resource management practices positively influence firm sustainable performance. Additionally, the results indicated that green innovation and transformational leadership play an affirmative role in sustainable performance. Green innovation and transformational leadership partially mediate the link between green human resource management practices and firm sustainable performance. This study's findings provide a platform for policymakers and researchers in manufacturing firms to put green human resource-based approaches into practice to strengthen the employees’ environmental commitment and enhance sustainable performance. On the other hand, this study has given a holistic vision of green human resource management practices, green innovation, transformational leaders, and sustainable performance. This research can be reflected as a rock on which other research projects will be built and provide empirical evidence regarding the connection.