Impact of Green HRM Practices on Organisational Sustainability: The Mediating Role of Employee Empowerment and Participation

Abstract

Purpose: This study investigates the impact of Green Human Resource Management (Green HRM) practices on organisational sustainability, with Employee Empowerment and Participation (EEP) serving as a mediating variable. Although Green HRM has gained increasing scholarly attention, limited empirical evidence exists on the mediating role of EEP in enhancing the economic, environmental, and social dimensions of sustainability within the manufacturing sector of developing economies. Design/Methodology: Primary data were collected from 215 HR professionals working in medium- and large-scale manufacturing organisations in Surat district, Gujarat, India. A structured questionnaire was used for data collection, and the proposed conceptual model was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS and bootstrapping (5,000 sub-samples) to examine both direct and indirect relationships among the study variables. Findings: All four Green HRM dimensions—Green Recruitment and Selection (GRS, β = 0.334), Green Training and Development (GTD, β = 0.309), Green Reward and Compensation (GRC, β = 0.296), and Green Performance Appraisal (GPA, β = 0.192)—significantly influence EEP, which subsequently exerts positive effects on Environmental Sustainability (SDEN, β = 0.385), Economic Sustainability (SDEC, β = 0.231), and Social Sustainability (SDSC, β = 0.218). Furthermore, EEP acts as a full mediator, as the direct effects of Green HRM on organisational sustainability are largely insignificant, whereas all indirect effects are positive and statistically significant. The structural model demonstrates satisfactory fit (SRMR = 0.063; NFI = 0.908). Originality: This study provides robust empirical evidence from an underrepresented industrial context and establishes EEP as the critical mechanism through which Green HRM practices contribute to organisational sustainability. The findings offer valuable theoretical insights and practical implications for managers and policymakers seeking to integrate sustainable HRM practices with long-term organisational sustainability strategies.