Human Capital as a Mediating Factor in the Effects of Green Human Resource Management Practices on Organizational Performance

Abstract

The goal of this study is to determine the effect of sustainable human resource management (SHRM) on organizational performance (OP) and human capital (HC). 275 employees from various public organizations in Jordan were surveyed. SmartPLS 3 was employed to evaluate the data and test the hypotheses. Herein, it discovered a substantial association between GHRM (green rewards and compensation, as well as green training and development) and OP, as well as a significant relationship between GHRM and HC, as well as a significant relationship between HC and OP. Additionally, HC plays a crucial role in mediating the link between GHRM and OP. The study underlines the importance of introducing GHRM practices into the workplace in order to promote positive green behavior among employees, hence increasing the firm's operating profit.