The Mediating Effect of Employee Outcomes on the Relationship between Green Human Resource Management Practices and Firm Performance

Abstract

Purpose: The purpose of the study was to determine the mediating effect of employee outcomes on the relationship between green human resource management (HRM) practices and the performance of firms listed on the Nairobi Securities Exchange (NSE). The study was anchored on the Guest model of HRM. It was guided by the positivist research philosophy and used a cross-sectional research design.A pilot was done in 12 firms not listed on the NSE. Reliability was ascertained through Cronbach’s coefficient and validity through expert judgement. Methodology: Primary data was collected using a structured questionnaire in a census of all the 62 NSE-listed firms. SPSS software was used to conduct descriptive and inferential statistics including Pearson correlation and simple regression analysis. The presentation of the results was in tables. Findings: The findings revealed an indirect link between green HRM practices and firm performance through employee outcomes. This implies the presence of a mediating effect (total effect minus the direct effect ()) of 0.284. Meaning that employee outcomes partially mediated the relationship between green HRM practices and firm performance. Therefore, the null hypothesis that employee outcomes have no statistically significant mediating effect on the relationship between green HRM practices and firm performance, was rejected. Unique contribution to theory, practice and policy: The study concluded that green employee outcomes (competency, commitment, and empowerment) were present in the listed firms and led to enhanced firm performance. The study validates the Guest model of HRM illustrating that the model is applicable in the study of firm performance. The study recommends that firms should introduce green HRM practices to realise employee outcomes that engrave an eco-culture among employees linked to sustainable performance. Further areas of research are; a study exploring the mediating role of other employment outcomes on the relationship between green HRM practices and firm performance. The study contributes to green HRM research theory and practice and offers a platform for further research by HR students, scholars, and researchers. Finally, the findings would guide Human Resource Managers as they institute green HRM practices in their organisations.