Pathways Towards Sustainability: Mediating Role of Green Human Resources Management Practices on the Relationship Between Green Intellectual Capital and Sustainable Performance Among ISO 14001 Certified Manufacturers

Abstract

Over the years, sustainability has become an integral issue for manufacturers, especially during and after the COVID-19 pandemic. Businesses are operating in a highly competitive environment and need to ensure sustainability. Green human resources management (GHRM) practices and green intellectual capital (GIC) are vital factors in explaining sustainable performance (SP). The aims of this study were to investigate the direct relationship between GIC and SP and to assess the role of GHRM practices as a mediator in the relationship between GIC and SP. Quantitative data was collected from ISO14001 certified Malaysian manufacturers using adopted questionnaires. The data was analysed using structural equation modelling (SEM) by SmartPLS 4.0. The findings indicated that GIC was positively related to SP, and GHRM practices partially mediated relationship between GIC and SP among the manufacturers. This study also discussed the vital implications for manufacturers to adopt GHRM practices to promote GIC and improve SP. Finally, this study highlighted some key limitations and recommendations for future research.