Nexus Between Green Human Resource Management and Sustainable Performance in a Moderated Mediation Mechanism

ABSTRACT This paper examines Green Human Resource Management (GHRM) for the common good through the connections between psychological green climate (PGC) and employee green behavior (EGB). In doing so, it explores the influence of GHRM and PGC on EGB and sustainable performance (SP) as well as the moderating effect of PGC on EGB. Drawing on the notion of common good, this study mobilizes ability motivation opportunity theory to articulate the nexus of business ethics and the environment. Data were collected from 307 manufacturing companies using a survey. To ensure robustness, structural equation modeling with AMOS software was used to analyze the data. The study's results show that both GHRM and PGC directly influence EGB, which proxies to affect the organizational SP precisely. However, the results also show that GHRM has no significant direct repercussion with SP, and the analysis of the moderation effect excavated that PGC does not intervene in the relationship of GHRM and EGB. This paper contributes to an interesting conjuncture of growing literature on the adoption and impact of psychological behavior and business ethics, which we argue can become the epicenter of ethical business processes to ensure the common environmental good. The study shows that organizations can flourish sustainable behavioral aspects, values, norms, and practices in business processes and among the employees through nurturing the tenets of GHRM, PGC, and EGB that will raise the organizational capacity to transform the environmental common good.