“Talk the Talk, Walk the Walk”: Linear and Nonlinear Relationships of Green HRM and Employee Performance

ABSTRACT In this study, we examine how green human resource management (GHRM) affects employee performance by integrating signaling theory and cognitive dissonance theory to address paradoxical findings in the literature on GHRM. Utilizing a sample of 201 employees in Portugal, we test linear mediation of GHRM through motivation and job satisfaction and evaluate its nonlinear (quadratic) direct effect on performance. Findings show that GHRM enhances motivation and job satisfaction, which improve performance, while also displaying a U‐shaped relationship with performance, in which moderate levels of GHRM may hinder performance but high levels strengthen it. Two segments emerge, reflecting this paradox: “green lovers,” where attitudinal congruence enhances motivation and performance, and “green skeptics,” where performance is maintained despite weaker congruence, calling for a better alignment between GHRM practices and employee values. The study advances cognitive dissonance theory by demonstrating a nonlinear pathway through which sustainability practices shape employee outcomes, and extends signaling theory by showing that GHRM effectiveness depends on perceived alignment, contributing to GHRM research by clarifying both positive and paradoxical effects.