The role of green HRM practices in promoting environmental sustainability within MSMEs

This study explores the how Micro, Small and Medium Enterprises (MSMEs) can incorporate Green Human Resource Management (GHRM) practices into their businesses and measure the effect of these practices on achieving sustainable business outcomes. Growing concerns about the environment (e.g. climate change, air pollution, depleting natural resources) and the pressure on organisations to respond to these issues by using sustainable methods has led to GHRM being seen as an important way for organisations to develop environmentally conscious processes as part of the way they operate within their businesses to promote environmentally friendly activities, improve environmental performance and promote the long-term success of the business. This paper also discusses the relationship between GHRM and some of the other factors that influence GHRM implementation. Specifically, these factors are Sustainable Work Culture (SWC), Green Innovative Business (IGB) and Environmental Innovative Business (EEI). The methodology employed by the authors involved the collection of survey data and the use of Smart PLS 4.0 to analyse the survey results. Hypotheses regarding the relationship between these factors and GHRM implementation were examined. The results of the analysis showed that SWC, IGB, and EEI all had strong and positive influences on GHRM while other factors, including Workplace Culture (WPC) and energy efficient buildings, displayed moderate but still substantial influence. The results of the study highlight the necessity for organisations to incorporate HR procedures into their business operations to achieve GHRM and to comply with environmental goals and legislation. Solutions aimed at improving business operations include technological solutions; however, the authors believe that creating a workplace culture that is environmentally conscious is also essential for organisations to achieve environmentally responsible outcomes. The result suggests that, embedding sustainable development practices in MSMEs through GHRM practices can be an important factor for improving an MSMEs sustainability performance and to have the greatest potential for long-term environmental benefit is to foster a level of green innovation not only for MSMEs but for all. The future of research will need to identify the sector size differences within to have a better understanding of the long-term impacts of GHRM on the organizational and environmental performance of each sector.