How green HRM practices foster green competitive advantage through big data analytics capability and are amplified by managerial environmental concern

Abstract

PurposeIn today’s business landscape, drawing upon the critical role of environmental sustainability, this study investigates the intricate relationship between green human resource management practices (GHRMP), big data analytics capability (BDAC), green competitive advantage (GCA) and environmental performance (EP), further moderated by managerial environmental concern (MEC).Design/methodology/approachThis study employs a quantitative approach using the latest version of SmartPLS 4 version 4.0.9.6 on a data sample of 467 participants representing a diverse range of manufacturing SMEs. Data were collected from managers and directors using a structured questionnaire and analyzed using structural equation modeling (SEM). This study contributes to the existing knowledge by integrating GHRMP and BDAC within the GCA framework, providing a comprehensive understanding of how these practices enhance SME`s sustainability.FindingsThe findings provide valuable insights into the manufacturing sector, aiming to enhance SMEs' green competitive advantage. Implementing GHRMP fosters environmental awareness within the workforce, and building BDAC allows for effectively translating that GHRMP into actionable insights, maximizing the potential for achieving GCA. Furthermore, recognizing MEC’s moderating role strengthens positive environmental outcomes associated with GCA. The findings confirm that GHRMP and BDAC are valuable resources and key drivers contributing to competitive advantage in sustainability of enterprises.Practical implicationsFor SMEs, our findings suggest that strategically integrating GHRMP with BDAC not only boosts environmental stewardship but also improves operational efficiency and market positioning. This research outlines actionable steps for SMEs aiming to achieve sustainability targets while enhancing profitability. This research provides actionable insights for SMEs in strategic decision-making and policy formulation, aiding SMEs in navigating the complexities of sustainable development effectively.Originality/valueThis study contributes to the existing knowledge by integrating GHRMP and BDAC within the GCA framework, providing a robust theoretical explanation of how HRM practices and BDAC help SMEs gain green competitiveness. The implication of this study reveals that SMEs implementing and integrating green HRM practices with advanced data analytics are more likely to gain competitive advantage. This study draws theoretical support from the resource-based view (RBV) theory, positing that a firm’s sustainable competitive advantage stems from its unique and valuable resources and capabilities that are difficult for competitors to imitate or substitute.