Driving Healthcare Socio‐Economic Sustainability Through Green <scp>HRM</scp> : Innovation and Strategic Environmental Approaches

ABSTRACT This study investigates the mediating role of green innovation (GI) in the relationship between green human resource management (GHRM) practices and economic and social performance, while also examining the moderating influence of environmental strategy on the link between GI and performance outcomes within Palestinian healthcare organizations. A quantitative approach was employed using a structured survey, with data analyzed through Partial Least Squares Structural Equation Modeling (PLS‐SEM)—a robust statistical method well‐suited for hypothesis testing in complex models. The findings confirm that GHRM practices and GI both directly and indirectly enhance economic and social performance. Notably, GI was identified as a key mechanism through which GHRM drives sustainable outcomes. However, the study found that environmental strategy does not exert a statistically significant moderating effect on the relationship between GI and performance in this context. These results underscore the critical role of GI in translating HR sustainability practices into tangible organizational benefits. This research contributes to the literature by clarifying the dynamics between GHRM, GI, and sustainable performance in a service sector that has received limited empirical attention—especially in developing and politically constrained contexts such as Palestine. The study offers theoretical insights into how strategic HR and innovation initiatives intersect to support sustainability and provides practical recommendations for healthcare managers and policymakers. In particular, it highlights the transformative potential of GHRM and GI for promoting economic and social sustainability in resource‐constrained environments, offering a valuable roadmap for other developing nations facing similar challenges.