Understanding the Indirect Effects of Sustainable HRM: Cognitive and Relational Pathways to Engagement and Performance

ABSTRACT This paper examines how sustainable human resource management (SHRM) influences employee engagement and performance through distinct cognitive and relational mechanisms. While previous research has demonstrated positive associations between SHRM and employee outcomes, the processes through which these effects occur remain insufficiently understood. Addressing this gap, the present research adopts a two‐study quantitative design to investigate the indirect pathways that connect SHRM to employee engagement and performance. Drawing on structural equation modeling across two complementary studies, we test distinct but interrelated explanatory pathways. Study 1, grounded in the theory of reasoned action (TRA), demonstrates that SHRM enhances employee engagement indirectly through organizational attractiveness, a cognitive‐evaluative mechanism reflecting employees' positive appraisals of their employer. Study 2, based on social exchange theory (SET), shows that SHRM fosters perceived organizational support, which sequentially increases engagement and individual performance, revealing a relational‐exchange mechanism. Taken together, the findings provide a comprehensive, process‐oriented understanding of SHRM's indirect and multifaceted impact on employee outcomes. The findings highlight that SHRM operates through coexisting cognitive and relational pathways, thereby extending theoretical insights beyond TRA and SET to encompass broader frameworks such as the Resource‐Based View (RBV) and the Ability‐Motivation‐Opportunity (AMO) models. Overall, the research advances a process‐based perspective on sustainable HRM and offers clear theoretical and managerial implications for how organizations can leverage sustainability‐oriented HR practices to enhance engagement and performance in the context of the green transition.