Organizational Environmental Culture, Environmental Sustainability and Performance: The Mediating Role of Green HRM and Green Innovation

Abstract

This study investigated Environmental Sustainability (ES) and Environmental Performance (EP) through the direct and indirect use of Organizational Environmental Culture (OEC). This study focused on top managers, namely, the CEOs and directors of SMEs, along with their middle managers. In this study, the researchers employed green HRM and Green Innovation (GI) as mediators. We applied a quantitative approach that utilized cross-sectional data collected from Saudi Arabian Small and Medium-sized Enterprises (SMEs). We used a survey questionnaire with a convenience sampling technique and succeeded in obtaining replies from 236 respondents. By using the Structural Equation Model (SEM), this study’s findings demonstrate that OEC has a positive and significant effect on green HRM and GI. This study’s findings support the development of policies that promote ES and EP through green environmental practices. Further, green HRM and GI are significant predictors of ES and EP. This study’s findings also show that green HRM and GI have a mediating effect in developing the associations between OEC and ES and EP. Ultimately, this study’s findings make a significant contribution to the depth of the empirical evidence about SMEs in the context of Saudi Arabia.