Unpacking the Paradox of Sustainable <scp>HRM</scp> in Emerging Economies: Evidence From Indian <scp>MNEs</scp>

ABSTRACT While sustainable human resource management (HRM) has gained scholarly attention, employee perspectives on its implementation remain underexplored, particularly in emerging market contexts. This study addresses that gap by examining how employees and managers in Indian multinational enterprises perceive and respond to sustainable HRM initiatives. Guided by signaling theory and paradox theory, the research draws on document analysis, focus groups, and in‐depth interviews with 82 employees and 19 managers. Findings reveal a duality in employee perceptions. On one hand, participants view sustainable HRM as aligned with ethical values, organizational purpose, and professional development. On the other hand, they have skepticism regarding superficial implementation, cultural misalignment, and increased workload. These divergent views point to signaling errors and a dual perception paradox, wherein employees simultaneously value the symbolic ideals of sustainability while questioning their authenticity. This study contributes theoretically by extending signaling and paradox theories to explain how employee interpretations shape the effectiveness of sustainable HRM in emerging economies. Practically, it highlights the need for culturally resonant and credible sustainability signals to enhance employee engagement and implementation success in diverse organizational settings.