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

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

Ahmad AlbloushMalek Alharafsheh Rami Hanandeh Ala Albawwat Mahmood Abu Shareah 

Faculty of Business, Amman Arab University, Amman 19328, Jordan

Corresponding Author Email: 
bloush@aau.edu.jo
Page: 
981-990
|
DOI: 
https://doi.org/10.18280/ijsdp.170329
Received: 
29 November 2021
|
Revised: 
28 January 2022
|
Accepted: 
14 February 2022
|
Available online: 
2 June 2022
| Citation

© 2022 IIETA. This article is published by IIETA and is licensed under the CC BY 4.0 license (http://creativecommons.org/licenses/by/4.0/).

OPEN ACCESS

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.

Keywords: 

green human resource management, organizational performance, human capital, public organizations, Jordan

1. Introduction

Over the last two decades, public sector organisations' processes, procedures, and systems have undergone dramatic changes in reaction to dynamic external developments. These include faster communication and easier access to information as a result of technological advancements, as well as changes in citizen and stakeholder expectations [1]. Jordan's public sector has a number of issues that have impacted its efficiency and effectiveness in achieving its goals, as well as a notable decline in the overall quality of service offered by government organisations [1].

Jordan's government aims to provide high-quality services to citizens by developing the capabilities of public employees, as evidenced by the Prime Ministry's Code of Conduct on the development of public employee performance and capabilities, demonstrating the government's interest in developing Human Capital (HC) in order to provide the best services to citizens [2].

HC development is the ongoing and planned process by which organisations assist their employees in acquiring the capabilities necessary to perform various functions associated with their current or anticipated roles [3]. The award is established on the concepts of total quality management, and achieving its requirements requires the adoption and application of best practices in management. On this basis, the government sector has adopted modern systems in human resource management, quality management systems, communication systems, strategies for developing technological components, strategy management systems and strategic planning [2].

In the highly competitive global economy, business organisations are not only responsible for their effectiveness or efficiency, but also for protecting the environment [4]. These concerns have forced organisations to adopt recommended environmental and human resource practices as an important contributor to this green agenda [5]. GHRM has emerged as a new concept aiming to investigate the natural resources generated by organisations [6]. GHRM has various benefits for organisations such as creating competitive advantages, reducing cost, improving environmental performance, attracting and retaining employees and improving employee welfare [6]. The demand for GHRM is in line with the growing demand for environmental conservation to improve organisational performance (OP) [4].

Huselid [7] stated that the practice of HRM is either collectively or individually able to reduce employee turnover and improve the performance of both employees and the organisation at large.

Herein, the relationship between GHRM and OP has been investigated as a contribution of the current study. For this new contribution, HC explores the aforementioned relationship. Subsequently, Ghouri et al. [8] proposed that future research use other mediator variables to explore the relationship between GHRM practices and OP. Consequently, this study uses HC to explore this relationship. It also provides evidence that the Jordanian public sector is engaging in green practices. It is better for firms to demonstrate an interest in improving the environment by reacting to the calls of environmental and social concerns; hence, it reinforces the resource-based view (RBV) literature by incorporating a unique experimental model.

2. Literature Review

The current theoretical framework was supported using the RBV theory. This theory has mostly been used in strategic management and related areas, the most important of which is HRM. Studies in various countries have examined how different types of job resources affect OP in ways that fit the RBV framework. The RBV theory to describe the positive influence of HRM [9]. Furthermore, RBV theory suggests that firms must have social complex resources capable of achieving a sustainable competitive advantage [10]. Because HR is socially complex, it should come as no surprise that most HR theorists have employed RBV to test the influence of HR on OP [10], to advance the understanding of vital human aspects when accepting new organisational practices and to improve enterprise performance [11].

2.1 GHRM practices

Bhutto and Auranzeb [12] pointed out that the concept of GHRM indicates that the primary emphasis of the organisation is HR operations for sustainable development. GHRM contributes to the promotion of social well-being and the development of behaviour towards environmental concerns, whilst GHRM practices assist the sustainability of distinct management styles [8]. Additionally, GHRM practices have carried significant assistances to organisational status and performance [13]. It has also received notable interest from scholars since its inception more than two decades ago [14].

GHRM includes all human resource management systems that ensure the balance of organisations’ environmental friendliness and has identified the support provided by HR practices in implementing organisations’ environmental procedures through the sustainable use of waste reduction and natural resources to boost company image and develop OP [14]. Renwick et al. [13] suggested that GHRM is a set of environmental rules developed to boost employees’ knowledge of environmental activities with the key objective of the company's to improving green credentials. Thus, the aligning HRM practices, such as training, recruitment, selection, empowerment, etc., with green activities and objectives is critical [15].

2.2 Organisational performance

Performance of the organization includes the financial and non-financial results of the joint request of processes, activities, policies and resources [16]. Schoorman et al. [17] pointed out that, for many organisations, OP is determined by the organisation's power to employ its resources to forecast its future. Organisational structure has demonstrated to be a key factor when exploratory success in retaining employees and customers [18]. The technique of assessing structures has served as an excellent example for organisations to emphasise which personnel are critical to operational excellence and should be recognised when making day-to-day decisions [19].

Several studies showed that OP in the public sector is typically subjective, complex, and complicated, and that no marker of indicators can ever provide an exact guess of actual performance, implying that it is difficult to measure performance objectively [20]. Additionally, Kim [21] provided a measure of OP based on the observations of members of the organisation. Objective data for performance evaluation is usually chosen as it was intended to be relatively fair; however, it is not always accessible, particularly in the public sector [22].

When it comes to assessing performance, external stakeholders such as citizens or reviews are viewed as having a more self-governing perspective. Consumers are, however, far more prone to underestimate an organization's performance since they have only a partial perspective of it, while characteristics of performance such as fairness or accountability remain 'hidden' [23]. Internal measures are seen as more likely to “get a better overall understanding of the challenges facing their organization” and their perceptions “provide more insight into the performance measures on which organisational decisions are based”. Thus, this study examines the perceptions of internal measures, i.e., public sector employees, as a proxy for OP. The Balance Score Card (BSC), developed by Kaplan and Norton [24] in the early half of the 1990s, is one of the most frequently used measures of organisational performance (OP) from the perspective of employees. The BSC scale considers four dimensions: financial, customer/stakeholder, internal process, and learning and growth. All of these considerations are weighed in the context of public sector employees.

2.3 Human capital

The term HC has been defined as an essential component in optimising company and employee assets in order to increase productivity, as well as maintain competitive advantage [25]. To maintain competitiveness in the organisation, HC is used as a tool to increase productivity. HC is essentially a method associated with learning, training to enhance employees’ levels of knowledge, skill, capabilities and social assets. This ultimately leads to employee satisfaction and performance and leads to OP [3].

According to numerous studies, HC is a significant element in the development of OP [26]. Education, experience, and knowledge are all necessary aspects of HC [27]. Higher education correlates favourably with performance [28], whereas job experience, management experience, and prior entrepreneurial experience connect with organisational activity [29]. Also, HC indicates to the process of training and education that results in an increase in employees' knowledge, skills, capacities, and social values, hence increasing employee happiness and OP [29].

3. Hypothesis Development

3.1 Link between GHRM practices and OP

Prior research indicates that individuals' motivation, competence and participation are related to environmental practices [30, 31] and positively influence performance. GHRM enhances financial performance [32], does not provide natural resources, but affects OP [13]. GHRM, such as compensation training, selection, recruitment, etc., helps organisations effectively implement green practices to increase competitive advantages and enhance profitability [15]. Similarly, Longoni et al. [33] argued that embracing GHRM draws professional personnel to increase OP, whereas Bon et al. [34] argued that GHRM fosters a competitive advantage that can cause improved OP.

Wagner [35] noted that GHRM practices increase customer satisfaction and good recruitment, which in turn strengthen OP. Organisations that provide green training to their employees to develop green capabilities reduce activities that create irrelevant waste and pollution [36]. In same regards, Agyabeng-Mensah et al. [37] identified that GHRM positively influences OP.

RBV aims to fully coordinate and harmonise different organisational resources to achieve synchronisation, leading to the obtainment of the ultimate competitive advantage and leading the market [38]. Business organisations can achieve optimum performance by implementing GHRM in various areas such as green training and development, green learning, green recruitment processes, and induction [13]. Subsequently, the study assumes the following hypotheses:

H1: There is a positive relationship between green training and development (GT) and OP.

H2: There is a positive relationship between green performance management and appraisal (GPA) and OP.

H3: There is a positive relationship between green rewards and compensation (GCOMP) and OP.

H4: There is a positive relationship between green empowerment and participation (GEMPO) and OP.

3.2 The link between HC and OP

The literature provides a fair amount of evidence that helps validate the vital role that HC plays in organisations as a source of innovation and strategic renewal [39]. Rabialdy [40] revealed that higher levels of skill and competence are a precursor to success; they state that if an individual is well educated and better trained, they are likely to secure more productivity and benefits within the organisation. In the same vein, Rabialdy [40] found a positive relationship between HC and OP, whilst Cleary and Quinn [41] demonstrated that there is a positive and statistically significant relationship between HC and OP.

Another study by Seleim et al. [42] pointed out that the indicators of HC at the level of OP have a positive relationship. Indicators such as training and teamwork practices have led to better performance as more productivity can be translated into OP. Additionally, Selvarajan et al. [43] stated that increasing HC lays the path for increased creativity, which has a beneficial effect on business success. Meanwhile, business performance and HC can be evaluated through the lens of high-performance business systems [43]. As a result, the study makes the following hypothesis:

H5. There is a positive relationship between HC and OP.

3.3 The link between GHRM practices and HC

Boxall [44] stated that when a part of an organisation has unique HC, this constitutes an “HC advantage. Organisations can work to avoid this by using definite kinds of HRM practices, as mentioned in Huselid [45]. If the organization espouses suitable personnel management procedures, HC can be directed to achieve sustainable competitive advantages by maintaining and expanding the value and privacy of the knowledge possessed by employees. This will encourage the organization's expertise to be updated and transferred [46]. Moreover, they indicate that special HRM practices can be suggested to preserve the value of this knowledge; it can be seen that these related practices overlap with those that have been positively correlated with organisational learning ability. Employment practices should be directed towards HC formation. In such a situation, the direction of the recruitment procedure changes depending on the necessity of the general HC versus the organisation’s own HC [46]. Lepak and Snell [47] indicated that it is suitable for new employees to be nominated based on their ability to expand their existing knowledge and skills. When this choice procedure is applied, the organisation is more likely to recruit individuals who are able to learn valuable and distinctive knowledge necessary for the organisation’s competitive ability [48].

Personnel development techniques (such as training, employee involvement in career management, and decision-making) should also be prioritised, as these practises are believed to drive employees to invest in acquiring specialised expertise and value for the organisation [46]. Thus, when employees learn that their organisation offers development opportunities to enhance their personal capabilities, the value of the organization's human capital increases, and people tend to align their skills and knowledge with the organization's demands. Thus, the study makes the following hypothesis:

H6. There is a positive relationship between GHRM and HC.

3.4 GHRM, HC and OP

Earlier research has studied the links between human resource management, human capital, and organisational performance. Youndt and Snell [47], for example, concluded that HC moderates the effect of human resource management (HRM) techniques on OP. Similarly, Wang et al. [48] demonstrated that in the setting of company ownership and lifecycle stage control, HC either completely or partially mediates the impacts of HRM on both components of OP. Additionally, Lopez-Cabrales et al. [49] discovered that knowledge has a moderating effect on the impact of human resource management practises on organisational innovation performance. According to Chen and Huang [50], knowledge management functions as a buffer between strategic human resource management practises and innovation performance; consequently, the study makes the following hypothesis:

H7. HC mediates the relationship between GHRM and OP.

Figure 1 shows the theoretical model proposed along with the hypotheses to be tested.

Figure 1. Theoretical model

4. Research Method

The current study chooses the specific practices as mentioned in the research model, other common practices such as (green recruitment and green selection) were exclude, because the recruitment and selection in the public sector is centralized by the Civil Service Bureau, and no government organization in Jordan allowed to hire anyone, Outside the scope of the Civil Service Bureau.

GHRM, OP and HC measures were obtained from prior studies. In this study, five, five, two, three, twenty-five and nine items are gauged to measure constructs GT, GPA, GCOMP, GEMPO, OP and HC, respectively. The items for all variables were adopted from prior studies and measures on 5-point Likert scales. The GHRM practices scale was adapted from Masri and Jaaron [51], OP adapted from Kaplan and Norton [52] and HC adapted from Seleim and Khalil [53].

The e-questionnaire included four sections:

Section 1: Include demographic information from respondents.

Section 2: Include 15 GHRM-measuring items.

Section 3: Include 25 OP-measuring items.

Section four contains nine items used to assess HC.

Public sector in Jordan consists of 99 organizations with 219,000 employees [54]. Due to the large number of government organization and the large number of government employees in Jordan, and due to the lack of time and the high cost, the researcher were select randomly some government organization such as (Ministry of Health, Ministry of Finance, Greater Amman municipality, Ministry of Education, Jordan radio and television, Ministry of Agriculture, Companies Control Department, Civil Service Consumer Corporation, Jordan Standards and Metrology Organisation, Ministry of Social Development, Auditing Bureau, Ministry of Labor, Ministry of Youth, and Civil Status and Passports Department). The researcher contacted the HR department in each organisation and send the e-questionnaire to them; the HR department then distributed the questionnaire to employees. A total of 275 responses were retained for data analysis. Table 1 illustrates respondents’ demographic information.

As demonstrated in Table 1, the respondents in the sample are gender equal, with 140 (50.9 percent) males and 135 females representing 49.1%. In addition, 52.7% were between the ages of 35 and 45. The age group of 45-less than 55 years, which accounted for 25.5%, is followed by those in the age group of 45-less than 55 years, who accounted for 70. There were 50 respondents in the 25-to-35-year-old age bracket, accounting for 18.2% sample. The lowest age group had 5 respondents, representing 3.6% of the whole sample. The highest age group had 5 respondents, representing 3.6% sample.

In terms of academic experience, 32.7% of the participants possessed from 10 to less than 15 years, with 21.8% having 15 to less than 20 years' experience, followed by 10.9% having 5 to less than 10, likewise 10.9% of respondents had more than 25 years' experience, and, finally, 9.1% had 20-less than 25 years' experience. In terms of qualifications, Table 1 shows that 39.3% of the respondents had a Bachelor's degree, followed by 24.7% of the respondents with a Master’s, 20.7% with a PhD and the remaining 15.3% of the respondents having a diploma or less.

Table 1. Respondents’ demographic characteristics

Variable gender

Category

Frequency

Percentage %

 

Male

140

50.9

 

Female

135

49.1

Age (in years)

 

 

 

 

18- less than 25

5

1.8

 

25-less than 35

50

18.2

 

35-less than 45

145

52.7

 

45-less than 55

70

25.5

 

More than 55

5

1.8

Work Experience (in years)

 

 

 

 

Less than 5

40

14.5

 

5-less than 10

30

10.9

 

10-less than 15

90

32.7

 

15-less than 20

60

21.8

 

20-less than 25

25

9.1

 

More than 25

30

10.9

Qualification

 

 

 

 

Diploma or less

42

15.3

 

Bachelor's

108

39.3

 

Master

68

24.7

 

PhD

57

20.7

5. Data Analysis and Results

The data in this experiment were analysed using SmartPLS 3. PLS is capable of testing both measurement and structural models concurrently [54]. The researchers examined reliability, convergent validity (especially AVE), and discriminant validity to determine the model's applicability [55]. Additionally, after estimating the paths in the structural model, bootstrap analysis was utilised to determine the path co-statistical efficient's significance [55].

5.1 Measurement model

Firstly, the researcher identified the convergent validity through loadings, average variance extracted (AVE) and composite reliability (CR), with cut off values of ≥ 0.5 for AVE and ≥ 0.7 for CR [55]. Although the loadings are suggested to be more than 0.7, if the AVEs are already higher than 0.5 then loadings between 0.5 and 0.7 are also acceptable. As shown in Table 2 and Figure 2, the AVEs were all higher than 0.5, the CRs higher than 0.7 and most of the loadings more than 0.500.

In comparison, discriminant validity examines whether or not measures that should be unrelated are indeed unrelated. The discriminant validity of each variable is determined using the AVE for that variable [55]. To demonstrate discriminant validity, the AVE should be larger than the squared correlation estimates.

The outcomes examination of the variables employed in this study are summarised in Table 3. The table gives the AVE for each variable diagonally, with greater values denoting higher values. However, the AVE values for the constructs are all greater than the non-diagonal elements or coefficients in the relevant columns and rows, indicating discriminant validity.

5.2 Structural model results

The current study examined the significance of path coefficients using the PLS algorithm and a typical bootstrapping process with 5,000 bootstrap samples. The values of the route coefficients and the bootstrapping results are shown in Table 4.

Table 2. Measurement model (Loading of Items, AVE and CR)

Construct

Item

Loading

CR

AVE

Green Training and Development (GT)

GT1

0.880

0.897

0.640

GT2

0.892

GT3

0.898

GT4

0.586

GT5

0.695

Green Performance Appraisal (GPA)

GPA1

0.817

0.945

0.775

GPA2

0.895

GPA3

0.892

GPA4

0.883

GPA5

0.911

Green Compensation (GCOMP)

GCOMP1

0.926

0.927

0.863

GCOMP2

0.932

Green Empowerment (GEMPO)

GEMPO1

0.915

0.934

0.825

GEMPO2

0.891

GEMPO3

0.918

Green Human Resources Management (GHRM)

0.959

0.616

Organisational Performance (OP)

OP1

0.524

0.968

0.551

OP2

0.699

OP3

0.659

OP4

0.653

OP5

0.677

OP6

0.721

OP7

0.500

OP8

0.586

OP9

0.740

OP10

0.799

OP11

0.897

OP12

0.787

OP13

0.740

OP14

0.868

OP15

0.821

OP16

0.766

OP17

0.733

OP18

0.810

OP19

0.852

OP20

0.587

OP21

0.777

OP22

0.856

OP23

0.813

OP24

0.769

OP25

0.768

Human Capital (HC)

HC1

0.868

0.961

0.732

HC2

0.903

HC3

0.858

HC4

0.942

HC5

0.848

HC6

0.882

HC7

0.871

HC8

0.799

HC9

0.710

Figure 2. Measurement model

Table 3. Discriminant validity analysis

 

GCOMP

GEMPO

GPA

GT

HC

OP

GCOMP

0.929

         

GEMPO

0.635

0.908

       

GPA

0.739

0.831

0.881

     

GT

0.702

0.689

0.802

0.821

   

HC

0.293

0.241

0.251

0.273

0.856

 

OP

0.488

0.437

0.469

0.53

0.662

0.742

Table 4. Direct effect of hypotheses testing

Path

Hypothesis

Path Coefficients

t-value

p-value

Decision

GCOMP -> OP

H3

0.146

2.801

0.005**

supported

GEMPO -> OP

H4

0.073

1.342

0.180

not supported

GPA -> OP

H2

-0.017

0.241

0.810

not supported

GT -> OP

H1

0.273

3.636

0.00***

supported

GHRM -> HC

H6

0.300

4.316

0.00***

supported

HC -> OP

H5

0.530

12.693

0.00***

supported

***: p<0.001; **: p<0.05

Figure 3. Structural model

Figure 3 illustrates the research model conceptualised for this study. As shown, the OP and HC R2 values are 0.580 and 0.090, respectively. This outcome denotes that GHRM can explain 58% of the variance in OP and 9% of the variance in HC.

Results confirm that GCOMP (β=0.146; t=2.801; p=0.005), GT (β= 0.273; t =3.636; p = 0.00) and HC (β= 0.530; t =13.693; p = 0.00) each have a significant positive relationship with OP, supporting H3, H1 and H5, respectively. Further, the GHRM (β= 0.300; t =4.316; p = 0.00) has a significant positive relationship with HC, supporting H6. On the other hand, GEMPO (β= 0.073; t =1.342; p = 0.180) and GPA (β= -0.017; t =0.241; p = 0.810) have no relationship with OP, leading us to conclude that H4 and H2 are not supported. Table 4 summarises the results of the path coefficient analysis.

The bootstrapping method was used to explore the mediating influence of HC on the interaction between GHRM and OP. This method is in line with Hair et al. [55], who suggested Variance Accounting For (VAF) to test the mediation by using the following formula and criteria.

$\boldsymbol{V} \boldsymbol{A} \boldsymbol{=}=(P a * p b) /(p a * P b)+p c$                        (1)

where, Pa (path a); Pb (path b); Pc (path c).

Table 5. Outcomes of mediating effects

Hypothesis

Path a

Path b

Path c (indirect effect)

Std.Err

t-value

p-value

VAF

Result

H7

0.309

0.662

0.204

0.046

4.403

0.00

0.50

Partial mediation

Note: Path a (the path from independent variable (GHRM) to mediator variable (HC); path b (the path from mediator variable (HC) to dependent variable (OP); path c (the indirect effect of independent variable (GHRM) on dependent variable (OP)

The thumb rule in this measurement is that if the VAF is less than 20%, almost no mediation occurs. A VAF of more than 20% but less than 80% suggests a usual partial mediation, whereas a VAF of more than 80% implies a full mediation [55].

Table 5 and Figure 4 exhibit the outcomes of the bootstrapping analysis on the mediating influence of HC on the relationship between GHRM and OP. The findings indicate that the VAF value is greater than 20% but less than 80%, showing that HC mediates the link between GHRM and OP in part.

Figure 4. Outcomes of mediating effects

6. Discussion

The study goal was to determine how GHRM affects OP. Our findings corroborate prior research [13, 32, 34] that established a favourable correlation between GHRM (green training and development, as well as green rewards and remuneration) and OP. The findings indicated that GHRM has a beneficial effect on OP. Similarly, to earlier research findings, GHRM enables organisations to effectively apply green practises in order to obtain competitive advantages and recruit expert personnel who can help organisations increase OP [26]. The result of this study reveals that GT and GCOMP significantly affect OP, while GEMPO and GPA have no effect on OP. Such results indicate that public organisations in Jordan should be concerned with training and compensation, which are the common factors that increase employee performance and consequently OP. These results are in line with prior studies by Rashid and Alam [9] who pointed out that organisations can achieve optimum performance by implementing green training and development and other GHRM practices. On the other hand, GHRM practices (GEMPO and GPA) do not directly boost OP. This is sound considering that in this study the GHRM practices only consider green training and development and green rewards and compensation.

Moreover, the results reveal that GHRM has a positive effect on HC. This result is supported by prior studies López-Cabrales et al. [46] that indicate that special HRM practices can be suggested to preserve the value of HC, as well as be directed to achieve sustainable competitive advantages by maintaining the value of the knowledge obsessed by employees. It can be seen that these related practices overlap with those that have been positively correlated with organisational learning ability.

Both industrialised and developing countries place a premium on HC development in order to boost economic growth through increased effort. When considering the international arena, one of the fundamental resolutions is the growth of HC. To do this, businesses must invest the appropriate resources in generating HC that has a greater influence on OP. In this context, the study's findings indicate that HC has a favourable correlation with OP. This outcome is in line with previous studies that identified a positive relationship between HC and OP [40], indicating that public organisations in Jordan should pay great attention to investment and developing HC, both of which lead to enhanced OP.

Finally, the result indicates that some effects of GHRM on OP are mediated through HC, whereas GHRM still clarifies a portion of OP that is independent of HC. Hence, the current study highlights the roles of HC as an outcome of GHRM and as a determinant of OP for employees in the Jordanian public sector. Investment and development of HC and good practices of GHRM of public sector employees can indeed promote the social relationship between employees. This in turn improves OP. Good recruitment and the development of HC are also able to exhibit good GHRM practices, enabling companies to handle complaints and provide professional services to the public. These outcomes are consistent with those reported in previous studies [47, 48].

7. Conclusion

The current study offers important theoretical implications for academicians and researchers. The current study explores how GHRM is related to HC in the setting of the Jordanian public sector. The combination of environment and HRM in HRM has a high likelihood of influencing HC, and the relationship between environment and HRM has become a hotly debated research topic. The study shows that those environmental concerns in HRM practice clearly contribute to the HC of public organisations. In addition, the current study investigates the impact of HC on OP in public organizations. Findings specify that by enhancing HC over green, the OP of Jordanian public organisations can be enhanced. Moreover, this study examines HC as a mediator in the suggested model. No explicit study appears to have tried to inspect the relationship between GHRM and OP, taking into account the mediating effect of HC. The study fills this void and is the first to demonstrate a significant positive relationship between “GHRM → HC → OP” and empirical contributions.

This study provides managers with new perspectives on the relationship between GHRM, HC, and OP. The current study recommends that managers be involved in green practises to shape their effectiveness. HR shows a vital role to accomplish the green goals of the organisation. Government attentiveness programmes about the green environment could also improve individuals’ fortitude to perform well and implement green organisational behaviour. Furthermore, managers should link HC strategies with OP because higher HC can rise OP. Similarly, HC can create a positive organisational image, which leads to increasing customer loyalty.

In this study, data was collected from a number of Jordanian public organisations. Consequently, the results are restricted to the public sector in Jordan. Therefore, it is suggested that future studies repeat the study in private sectors in Jordan or in other developing countries. The same model could be useful in other sectors to solidify the results of GHRM on OP. The current model of this study could thus be beneficial for any organisation adopting GHRM practices, which in turn can save costs and enhance OP. Future studies are recommended to empirically test each GHRM practise to identify strong predictors for HC and OP. Also, it is recommended that researchers utilise other variables to discover the role of GHRM. Furthermore, the current study only hired a single mediator in the model; we propose the use of other variables to find the relationship between GHRM and OP. Finally, given the existence of HC as a mediator, other variables could probably affect similar mediation approaches in the same model.

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