Abstract

This study aims to analyze the role of green transformational leadership and human resource management in organizational performance with the mediating effect of green innovation. The study also proposes the moderating role of commitment to management change. The study used a quantitative research method with a random sampling technique and surveyed 235 managers from the Cement industry across Pakistan. The statistical techniques used to assess the study’s hypotheses were partial least squares structural equation modeling (PLS-SEM) and SPSS. The findings show that green transformational leadership and HRM positively impact organizational performance, with green innovation partially mediating effect. Furthermore, affective commitment to management change strongly moderates the relationship between green innovation and organizational performance. In addition, the proposed relationship is based on the resource-based view (RBV) theory. Therefore, Managers and executives should adopt green principles and practices and build an environmentally friendly culture that encourages employees to engage in green behaviors and activities to improve organizational performance. To successfully implement green practices in a developing country like Pakistan, the Cement sector must understand how the cement industry improves its performance and whether employees demonstrate green innovation.

Introduction

In recent decades, scholars have recognized the significance of Green HRM and green leadership in shaping the operational practices in modern firms [1]. In this regard, and for the efficient and effective management of operations, technology advancements, and rising stakeholder pressure have motivated firms to discover and implement cost-effective and long-term methods to improve organizational performance [2,3]. Enhancing performance has emerged as a primary problem for businesses, requiring the effective utilization of organizational resources and adopting environmentally sustainable practices in Green HRM and eco-friendly activities [4]. The significant rise in globalization and social responsibilities demands justifications for adopting optimal Green HRM practices and integrating data analytics to enhance decision-making [5,6]. To ensure the sustainability and advancement of green business activities, dominant policies encompassing Green HRM, innovation, leadership, environmental quality, and social well-being are essential. Businesses can mitigate their adverse environmental and societal impacts by implementing GHRM, green leadership, and innovative practices [7]. Green HRM comprises three crucial components: motivating employees to enhance their engagement, providing them with green opportunities, and assisting in developing their green skills, which are essential abilities [8]. The underlined components of Green HRM address staff recruitment, selection, development, and training with an environmentally conscious focus; the potential for adopting green practices encompasses employee involvement and green leadership [9].

Discussion

Our empirical work has examined the interactions among variables such as green transformational leadership, HRM, innovation, affective commitment to management change, and organizational performance of the cement industry in Pakistan using theoretical insights from RBV theory. Our study has thoroughly explained all three hypotheses and their sub-hypotheses, showing that the performance of an organization can be improved through green transformational leadership and HRM. This improvement is achieved through the mediating role of green innovation and the moderating role of affective commitment to management change. There is a strong and positive association between all three hypotheses.

Our study found that green transformational leadership influences firm performance by establishing a clear environmental vision, motivating individuals to adopt green practices, increasing employee commitment to achieving environmental goals, and encouraging staff to create and disseminate new green practices; these results are similar to past findings [41]. The results demonstrate that transformational leaders who foster their employees’ green practices to motivate them have excellent potential to execute green prospects effectively.