Does the Environmental Management System Predict TBL Performance of Manufacturers? The Role of Green HRM Practices and OCBE as Serial Mediators

Abstract

Over the years, Malaysian manufacturers struggled to mitigate the widened gap among the three aspects of TBL performance, e.g., economic, social, and environmental. Although, the economic performance is relatively elevated compared to environmental performance based on environmental performance index (EPI) data reports. Similarly, less than twenty per cent (20%) of manufacturers are ISO14001-certified out of the total registered firms in the 52nd FMM directory. The firms must employ green HRM practices to foster pro-environmental behaviour and support their managers to adopt the environmental management system (EMS) framework to reap the benefits of TBL performance. To resolve these issues, sustainability has become an essential strategy for manufacturers in addressing environmental problems due to consistent ecological awareness among stakeholders that compels firms to adopt EMS and green HRM practices to foster organizational citizenship behaviour for the environment (OCBE) and improve triple bottom line (TBL) performance. This research aimed to investigate the impact of the EMS on TBL performance through green HRM practices and OCBE via a serial mediation approach among ISO14001-certified manufacturing firms. A quantitative methodology was employed based on a positivist paradigm. The sample of 350 respondent firms was randomly targeted via standard questionnaires. Around 248 manufacturers responded with a response rate of 70%, which is sufficient for data analysis. After outliers and normality assessment, the clean data of 216 manufacturers were finally analysed using SmartPLS 4.0. Structural equation modelling (SEM) analysis revealed that EMS is positively related to OCBE, and OCBE is positively associated with TBL. EMS is positively related to green HRM practices, and green HRM practices are positively associated with OCBE. Furthermore, it was confirmed that green HRM practices and OCBE serially mediated the relationship between EMS and TBL performance among ISO14001-certified manufacturing firms. The current study also presents vital organizational and managerial implications.

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“…The literature provides information on HRM’s benefits for organizational performance and its gradual implementation in SMEs (Du et al, 2023 ). For example, it was discovered that the implementation process for green HRM practices was gradual, informal, and systematic for SMEs in the manufacturing and transport industries (Yue et al, 2023 ).…”

The Role of Islamic Work Ethics and Organizational Citizenship Behavior in Green Human Resource Practices and Environmental Performance of Indonesian Food SMEs

“…Not in line with researchers' expectations, these findings explain that GHRM among food processing SMEs owners does not have a significant direct effect on OCBE (H4). Although previous studies have reported a strong relationship between GHRM on OCBE [28][29][30][31][32][33]. Therefore this study failed to identify this relationship, but these findings are in line with the findings [21] which found that GRHM did not affect the OCBE of hotel employees in Vietnam.…”

“…Other empirical studies also explain that GHRM practices have a positive and significant effect on OCBE [33]. Furthermore, GHRM does not only play a role in increasing employee OCBE but GHRM also plays a role in improving EP as studies [24][25][26][27][28][29][30][31][32][33][34] that organizations that wish to employ applicants first ask several questions related to the environment during the interview session and will select applicants with strong environmental values, then with these candidates organizations can improve their EP. This finding is in line with studies [23][24][25][26][27] that GHRM practices are critical to EP.…”

“…In general, GHRM as human resource management includes aspects of environmental management [28]. Furthermore, GHRM refers to the use of HR policies, philosophies, and practices (recruitment and selection, training and development, performance management, appraisal, and compensation) which then focus on sustainable business use [19].…”

“…In short, GHRM is an expansion from HRM practices that focus on environmental sustainability. The study of Yue et al [28] argues that GHRM affects OCBE because GHRM is an organizational resource that shapes employees' values, knowledge, and skills related to the environment, helps them to participate in environmental activities, and motivates employees to voluntarily engage in OCBE. Other empirical studies also explain that GHRM practices have a positive and significant effect on OCBE [33].…”