Fostering sustainable development: the role of green HRM and green work engagement

This study examines the relationship between green human resource management (GHRM) practices and sustainable performance (SP) of manufacturing SMEs in Saudi Arabia, with a particular focus on the mediating role of green work engagement (GWE). Drawing on the resource-based View (RBV) and social exchange theory (SET), the study positions GHRM as a strategic driver of sustainability by fostering employee engagement in environmentally responsible practices. Data were collected from 201 manufacturing SMEs and analyzed using structural equation modeling via SmartPLS. The findings indicate that GHRM positively influences SP, both directly and indirectly, through GWE, which serves as a partial mediator. These results underscore the critical role of an engaged workforce in translating green HRM policies into meaningful sustainability outcomes. By extending the discourse on GHRM within the context of SMEs in an emerging economy, this study contributes to the literature on sustainable management practices and provides actionable insights for business leaders and policymakers. It highlights the necessity of integrating green HR strategies with national sustainability initiatives, particularly within the framework of Saudi Arabia’s Vision 2030, to enhance organizational resilience and environmental responsibility.