Inclusive and sustainable economic growth for MSME firms: examining the impact of sustainable HRM practices on women’s well-being

Purpose The study explores inclusive and sustainable growth in Micro, Small and Medium Enterprises (MSME) by examining people-oriented practices that expand employment opportunities for women. It uses the Conservation of Resources Theory to explore sustainable HRM practices like telecommuting, managerial support and understanding generational preferences to enhance women's well-being. Design/methodology/approach The study captures the impact of HRM practices on employee well-being using multi-source data that were collected through an online questionnaire administered to 2,856 female employees in 18 Indian MSMEs. We then use PLS-SEM (SmartPLS-4 and PLS-multi-group analysis (PLS-MGA)) to analyze predictors of employee well-being. Findings The data analysis revealed that satisfaction with HRM practices positively impacted employee well-being. Secondly, satisfaction with telecommuting mediated the relationship between satisfaction with HRM practices and employee well-being. Thirdly, managerial support positively moderated the relationship between satisfaction with telecommuting and well-being. Lastly, generational cohort membership moderated the satisfaction with HRM policies and well-being, with Generation Z having a stronger need than Generation Y. Practical implications This study emphasizes the significance of robust and gender-sensitive HRM practices in MSMEs in high-growth emerging markets. It emphasizes the need for telecommuting policies and the role of managers in creating a supportive work environment for women. By implementing these insights, MSMEs can develop effective strategies to attract, retain and promote the well-being of women employees, thereby fostering sustainable HRM practices. Originality/value This study explores sustainable MSME HRM practices supporting gender inclusions and women’s well-being in high-growth emerging markets. By focusing on gender inclusion and the impact of telecommuting, generational preferences and managerial support, we contribute to mechanisms for sustainable labor as an economic and social concept.