Catalysing sustainability: how green high-performance work systems shape green innovation by interacting with organisational readiness and agility

Purpose This study aims to explore the influence of green high-performance work systems (GHPWS) on both radical and incremental green innovation (RGI and IGI) in Spanish manufacturing firms. Grounded in the resource-based view (RBV) theory, the study investigates the moderated mediating role of organisational agility (OA) and organisational readiness (OR). Design/methodology/approach A quantitative research approach was employed, using data collected from 443 respondents in Spanish manufacturing firms. Partial least squares structural equation modelling (PLS-SEM) and moderated mediation analysis were used to test the proposed relationships. Findings The results reveal that GHPWS have a significant positive effect on both RGI and IGI. OR partially mediates these relationships. Additionally, OA moderates the link between GHPWS and OR, as well as between OR and RGI. However, the moderating effect of OA on the relationship between OR and IGI is not supported. Practical implications This study offers actionable insights by highlighting the importance of investing in GHPWS, and employee involvement to drive GI. Developing organisational resources alongside green HR practices is essential for maximising innovation potential. Organisational agility is crucial for radical innovation, while a stable, continuous improvement approach is better suited for incremental innovation. Originality/value This study contributes to the literature by providing empirical evidence of how GHPWS, moderated by OA, drive GI in the manufacturing sector. It underscores the importance of integrating sustainable human resource practices, OR and OA to enhance both radical and incremental GI.