THE IMPACT OF DIGITAL INNOVATION ON ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF GREEN HR PRACTICES IN SMEs

In the current digital age, technological innovation is rapidly transforming work methods and employee expectations for work–family balance. This study aims to explore how digital innovation, through Green Human Resource Practices (GHRPs) and Leader–Member Exchange (LMX), promotes sustainable transformation in small- and medium-sized enterprises (SMEs) while effectively supporting employees’ work–family balance. Using empirical analysis on 357 employees from 10 digitized SMEs, the study constructs a comprehensive model based on Resource Dependence Theory (RDT), Social Exchange Theory (SET) and Planned Change Theory (PCT). The findings reveal that digital innovation plays a critical role in adjusting work–family boundaries and enhancing employee satisfaction and organizational performance, with GHRPs and LMX serving as important mediators in this process. Additionally, the study emphasizes the key role of effective change management strategies in achieving sustainable organizational growth. This research provides a framework and strategies for SMEs to implement GHRPs in the digital context, helping to improve organizational performance and facilitate sustainable organizational transformation.