RESEARCH ARTICLE
How green human resource management can promote green competitive advantage: The role of green innovation
Shujie Zhang,
Mengyuan Chen,
Guiyao Tang,
Shujie Zhang
Business School, Shandong Normal University, Jinan, P. R. China
Search for more papers by this authorMengyuan Chen
School of Management, Shandong University, Jinan, P. R. China
Search for more papers by this authorCorresponding Author
Guiyao Tang
School of Management, Shandong University, Jinan, P. R. China
Correspondence
Guiyao Tang, School of Management, Shandong University, 27 Shanda Nanlu, Jinan, P. R. China 250100.
Email: [email protected]
Search for more papers by this authorShujie Zhang,
Mengyuan Chen,
Guiyao Tang,
Shujie Zhang
Business School, Shandong Normal University, Jinan, P. R. China
Search for more papers by this authorMengyuan Chen
School of Management, Shandong University, Jinan, P. R. China
Search for more papers by this authorCorresponding Author
Guiyao Tang
School of Management, Shandong University, Jinan, P. R. China
Correspondence
Guiyao Tang, School of Management, Shandong University, 27 Shanda Nanlu, Jinan, P. R. China 250100.
Email: [email protected]
Search for more papers by this authorShujie Zhang and Mengyuan Chen contribute equally to this work and are joint first authors.
Abstract
With growing public concerns about ecological issues, it has been increasingly critical for corporations to enhance their green competitive advantages. Utilizing a natural-resource-based view of firm and human resource management (HRM) perspective, we propose that green HRM (GHRM) promotes firms' green competitive advantages by facilitating two kinds of green innovation (i.e., green product/process innovation). Via a two-wave survey study of chief human resources officers (CHOs) and chief financial officers (CFOs) from 69 companies in China, we find support that GHRM positively links to green product and process innovations, each of which will, in turn, have a positive correlation with a green competitive advantage. Moreover, an indirectly positive linkage between GHRM and green competitive advantage via two types of green innovation is also proved. Our study expands current research by demonstrating a positive effect of GHRM in building green competitive advantage and by revealing two parallel mechanisms of such effect.
CONFLICT OF INTEREST STATEMENT
None.
REFERENCES
- Adams, P., Freitas, I. M. B., & Fontana, R. (2019). Strategic orientation, innovation performance and the moderating influence of marketing management. Journal of Business Research, 97, 129–140. https://doi.org/10.1016/j.jbusres.2018.12.071
- Adla, L., Gallego-Roquelaure, V., & Calamel, L. (2019). Human resource management and innovation in SMEs. Personnel Review, 49, 1519–1535. https://doi.org/10.1108/PR-09-2018-0328
- Aguinis, H., & Edwards, J. R. (2014). Methodological wishes for the next decade and how to make wishes come true. Journal of Management Studies, 51, 143–174. https://doi.org/10.1111/joms.12058
- Alhmoudi, R. S., Singh, S. K., Caputo, F., Riso, T., & Iandolo, F. (2022). Corporate social responsibility and innovative work behavior: Is it a matter of perceptions? Corporate Social Responsibility and Environmental Management, 29, 2030–2037. https://doi.org/10.1002/csr.2299
- Andersson, L., Jackson, S. E., & Russell, S. V. (2013). Greening organizational behavior: An introduction to the special issue. Journal of Organizational Behavior, 34, 151–155. https://doi.org/10.1002/job.1854
- Ansari, N. Y., Farrukh, M., & Raza, A. (2021). Green human resource management and employees pro-environmental behaviours: Examining the underlying mechanism. Corporate Social Responsibility and Environmental Management, 28, 229–238. https://doi.org/10.1002/csr.2044
- Appannan, J. S., Mohd Said, R., Ong, T. S., & Senik, R. (2023). Promoting sustainable development through strategies, environmental management accounting and environmental performance. Business Strategy and the Environment, 32, 1914–1930. https://doi.org/10.1002/bse.3227
- Armstrong, R. M., & Grobbelaar, S. S. S. (2022). Sustainable business models for social enterprises in developing countries: A conceptual framework. Management Review Quarterly, 1-54, 787–840. https://doi.org/10.1007/s11301-022-00260-1
10.1007/s11301-022-00260-1 Google Scholar
- Bamber, G. J., Bartram, T., & Stanton, P. (2017). HRM and workplace innovations: Formulating research questions. Personnel Review, 46, 1216–1227. https://doi.org/10.1108/PR-10-2017-0292
- Bianchini, S., Damioli, G., & Ghisetti, C. (2023). The environmental effects of the “twin” green and digital transition in European regions. Environmental and Resource Economics, 84, 877–918. https://doi.org/10.1007/s10640-022-00741-7
- Bontis, N. (1998). Intellectual capital: An exploratory study that develops measures and models. Management Decision, 36, 63–76. https://doi.org/10.1108/00251749810204142
10.1108/00251749810204142 Google Scholar
- R. W. Brislin (Ed.). (1990). Applied cross-cultural psychology (Vol. 14). Sage Publications. https://doi.org/10.4135/9781483325392
10.4135/9781483325392 Google Scholar
- Centobelli, P., Cerchione, R., Maglietta, A., & Oropallo, E. (2023). Sailing through a digital and resilient shipbuilding supply chain: An empirical investigation. Journal of Business Research, 158, 113686. https://doi.org/10.1016/j.jbusres.2023.113686
- Centobelli, P., Cerchione, R., Oropallo, E., El-Garaihy, W. H., Farag, T., & Al Shehri, K. H. (2022). Towards a sustainable development assessment framework to bridge supply chain practices and technologies. Sustainable Development, 30, 647–663. https://doi.org/10.1002/sd.2262
- Chang, C. H. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104, 361–370. https://doi.org/10.1007/s10551-011-0914-x
- Chen, Y. S. (2007). The driver of green innovation and green image – green core competence. Journal of Business Ethics, 81, 531–543. https://doi.org/10.1007/s10551-007-9522-1
- Chen, Y. S. (2008). The driver of green innovation and green image–green core competence. Journal of Business Ethics, 81, 531–543. https://doi.org/10.1007/s10551-007-9522-1
- Chen, Y. S., & Chang, C. H. (2013a). Greenwash and green trust: The mediation effects of green consumer confusion and green perceived risk. Journal of Business Ethics, 11, 489–500. https://doi.org/10.1007/s10551-012-1360-0
10.1007/s10551-012-1360-0 Google Scholar
- Chen, Y. S., & Chang, C. H. (2013b). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of Business Ethics, 116, 107–119. https://doi.org/10.1007/s10551-012-1452-x
- Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67, 331–339. https://doi.org/10.1007/s10551-006-9025-5
- Coppola, C., Vollero, A., & Siano, A. (2023). Developing dynamic capabilities for the circular economy in the textile and clothing industry in Italy: A natural-resource-based view. Business Strategy and the Environment, 32, 4798–4820. https://doi.org/10.1002/bse.3394
- Dagnino, G. B., Picone, P. M., & Ferrigno, G. (2021). Temporary competitive advantage: A state-of-the-art literature review and research directions. International Journal of Management Reviews, 23, 85–115. https://doi.org/10.1111/ijmr.12242
- E. D. De Leeuw, J. J. Hox, & D. A. Dillman (Eds.). (2008). International handbook of survey methodology. Taylor & Francis Group/Lawrence Erlbaum Associates.
- Du, K., & Li, J. (2019). Towards a green world: How do green technology innovations affect total-factor carbon productivity. Energy Policy, 131, 240–250. https://doi.org/10.1016/j.enpol.2019.04.033
- Dumont, J., Shen, J., & Deng, X. (2017). Effects of green HRM practices on employee workplace green behavior: The role of psychological green climate and employee green values. Human Resource Management, 56, 613–627. https://doi.org/10.1002/hrm.21792
- El-Kassar, A. N., & Singh, S. K. (2019). Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices. Technological Forecasting and Social Change, 144, 483–498. https://doi.org/10.1016/j.techfore.2017.12.016
- Esty, D. C., & Winston, A. (2009). Green to gold: How smart companies use environmental strategy to innovate, create value, and build competitive advantage. John Wiley & Sons.
- Gabler, C. B., Itani, O. S., & Agnihotri, R. (2022). Activating corporate environmental ethics on the frontline: A natural resource-based view. Journal of Business Ethics, 1-24, 63–86. https://doi.org/10.1007/s10551-022-05201-2
10.1007/s10551-022-05201-2 Google Scholar
- Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysis ( 5th ed.). Prentice-Hall.
- Haldorai, K., Kim, W. G., & Garcia, R. F. (2022). Top management green commitment and green intellectual capital as enablers of hotel environmental performance: The mediating role of green human resource management. Tourism Management, 88, 104431. https://doi.org/10.1016/j.tourman.2021.104431
- Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20, 986–1014. https://doi.org/10.5465/amr.1995.9512280033
- Howard-Grenville, J., Buckle, S. J., Hoskins, B. J., & George, G. (2014). Climate change and management. Academy of Management Journal, 57, 615–623. https://doi.org/10.5465/amj.2014.4003
- Huang, J. W., & Li, Y. H. (2017). Green innovation and performance: The view of organizational capability and social reciprocity. Journal of Business Ethics, 145, 309–324. https://doi.org/10.1007/s10551-015-2903-y
- Khan, S. J., Kaur, P., Jabeen, F., & Dhir, A. (2021). Green process innovation: Where we are and where we are going. Business Strategy and the Environment, 30, 3273–3296. https://doi.org/10.1002/bse.2802
- Kianto, A., Sáenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81, 11–20. https://doi.org/10.1016/j.jbusres.2017.07.018
- Kim, T. T., Kim, W. G., Majeed, S., & Haldorai, K. (2023). Does green human resource management lead to a green competitive advantage? A sequential mediation model with three mediators. International Journal of Hospitality Management, 111, 103486. https://doi.org/10.1016/j.ijhm.2023.103486
- Kim, Y. J., Kim, W. G., Choi, H. M., & Phetvaroon, K. (2019). The effect of green human resource management on hotel employees' eco-friendly behavior and environmental performance. International Journal of Hospitality Management, 76, 83–93. https://doi.org/10.1016/j.ijhm.2018.04.007
- Kuo, F. I., Fang, W. T., & LePage, B. A. (2022). Proactive environmental strategies in the hotel industry: Eco-innovation, green competitive advantage, and green core competence. Journal of Sustainable Tourism, 30, 1240–1261. https://doi.org/10.1080/09669582.2021.1931254
- Li, F. (2020). Leading digital transformation: Three emerging approaches for managing the transition. International Journal of Operations & Production Management, 40, 809–817. https://doi.org/10.1108/IJOPM-04-2020-0202
- Li, Y., Wang, M., Van Jaarsveld, D. D., Lee, G. K., & Ma, D. G. (2018). From employee-experienced high-involvement work system to innovation: An emergence-based human resource management framework. Academy of Management Journal, 61, 2000–2019. https://doi.org/10.5465/amj.2015.1101
- Lichtenthaler, U. (2016). Toward an innovation-based perspective on company performance. Management Decision, 54, 66–87. https://doi.org/10.1108/MD-05-2015-0161
- Little, T. D. (1997). Mean and covariance structures (MACS) analyses of cross-cultural data: Practical and theoretical issues. Multivariate Behavioral Research, 32, 53–76. https://doi.org/10.1207/s15327906mbr3201_3
- Medsker, G. J., Williams, L. J., & Holahan, P. J. (1994). A review of current practices for evaluating causal models in organizational behavior and human resources management research. Journal of Management, 20, 439–464. https://doi.org/10.1177/014920639402000207
- Mishra, P. (2017). Green human resource management: A framework for sustainable organizational development in an emerging economy. International Journal of Organizational Analysis, 25, 762–788. https://doi.org/10.1108/IJOA-11-2016-1079
- Muisyo, P., Su, Q., Ho, T. H., Julius, M. M., & Usmani, M. S. (2022). Implications of green HRM on the firm's green competitive advantage: The mediating role of enablers of green culture. Journal of Manufacturing Technology Management, 33, 308–333. https://doi.org/10.1108/JMTM-01-2021-0033
- Obereder, L., Müller-Camen, M., & Renwick, D. W. (2022). GHRM in Sustainability Reporting: An Exploratory Analysis Across Six Countries Using the AMO Framework. In Green human resource management research: Issues, trends, and challenges (pp. 141–166). Springer International Publishing. https://doi.org/10.1007/978-3-031-06558-3_7
10.1007/978-3-031-06558-3_7 Google Scholar
- Ones, D. S., & Dilchert, S. (2012). Employee green behaviors. In S. E. Jackson, D. S. Ones, & S. Dilchert (Eds.), Managing human resources for environmental sustainability (pp. 85–116). Jossey-Bass.
- Palmer, J. C., Wright, R. E., & Powers, J. B. (2001). Innovation and competitive advantage in small businesses: Effects of environments and business strategy. Journal of Small Business Strategy, 12(1), 30–41. Retrieved from https://libjournals.mtsu.edu/index.php/jsbs/article/view/464
- Papadas, K. K., Avlonitis, G. J., Carrigan, M., & Piha, L. (2019). The interplay of strategic and internal green marketing orientation on competitive advantage. Journal of Business Research, 104, 632–643. https://doi.org/10.1016/j.jbusres.2018.07.009
- Paparoidamis, N. G., Tran, T. T. H., Leonidou, L. C., & Zeriti, A. (2019). Being innovative while being green: An experimental inquiry into how consumers respond to eco-innovative product designs. Journal of Product Innovation Management, 36, 824–847. https://doi.org/10.1111/jpim.12509
- Pereira, V., Tuffour, J., Patnaik, S., Temouri, Y., Malik, A., & Singh, S. K. (2021). The quest for CSR: Mapping responsible and irresponsible practices in an intra-organizational context in Ghana's gold mining industry. Journal of Business Research, 135, 268–281. https://doi.org/10.1016/j.jbusres.2021.06.024
- Peterson, R. A., & Kim, Y. (2013). On the relationship between coefficient alpha and composite reliability. Journal of Applied Psychology, 98, 194–198. https://doi.org/10.1037/a0030767
- Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63, 539–569. https://doi.org/10.1146/annurev-psych-120710-100452
- Potrich, L., Cortimiglia, M. N., & de Medeiros, J. F. (2019). A systematic literature review on firm-level proactive environmental management. Journal of Environmental Management, 243, 273–286. https://doi.org/10.1016/j.jenvman.2019.04.110
- Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40, 879–891. https://doi.org/10.3758/BRM.40.3.879
- Ramos-González, M. D. M., Rubio-Andrés, M., & Sastre-Castillo, M. Á. (2022). Effects of socially responsible human resource management (SR-HRM) on innovation and reputation in entrepreneurial SMEs. International Entrepreneurship and Management Journal, 18(3), 1205–1233. https://doi.org/10.1007/s11365-020-00720-8
- Rayner, J., & Morgan, D. (2018). An empirical study of ‘green’ workplace behaviours: Ability, motivation and opportunity. Asia Pacific Journal of Human Resources, 56, 56–78. https://doi.org/10.1111/1744-7941.12151
- Ren, S., Jiang, K., & Tang, G. (2022). Leveraging green HRM for firm performance: The joint effects of CEO environmental belief and external pollution severity and the mediating role of employee environmental commitment. Human Resource Management, 61, 75–90. https://doi.org/10.1002/hrm.22079
- Ren, S., Tang, G., & Jackson, S. E. (2020). Effects of green HRM and CEO ethical leadership on organizations' environmental performance. International Journal of Manpower, 42, 961–983. https://doi.org/10.1108/IJM-09-2019-0414
- Ren, S., Tang, G., & Jackson, E. S. (2018). Green human resource management research in emergence: A review and future directions. Asia Pacific Journal of Management, 35, 769–803. https://doi.org/10.1007/s10490-017-9532-1
- Renwick, D. W., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda. International Journal of Management Reviews, 15, 1–14. https://doi.org/10.1111/j.1468-2370.2011.00328.x
- Roscoe, S., Subramanian, N., Jabbour, C. J., & Chong, T. (2019). Green human resource management and the enablers of green organisational culture: Enhancing a firm's environmental performance for sustainable development. Business Strategy and the Environment, 28, 737–749. https://doi.org/10.1002/bse.2277
- Sakshi, S., Cerchione, R., & Bansal, H. (2020). Measuring the impact of sustainability policy and practices in tourism and hospitality industry. Business Strategy and the Environment, 29, 1109–1126. https://doi.org/10.1002/bse.2420
- Seeck, H., & Diehl, M. R. (2017). A literature review on HRM and innovation–taking stock and future directions. The International Journal of Human Resource Management, 28, 913–944. https://doi.org/10.1080/09585192.2016.1143862
- Shashi, C. P., Cerchione, R., & Mittal, A. (2021). Managing sustainability in luxury industry to pursue circular economy strategies. Business Strategy and the Environment, 30, 432–462. https://doi.org/10.1002/bse.2630
- Shipton, H., Sparrow, P., Budhwar, P., & Brown, A. (2017). HRM and innovation: Looking across levels. Human Resource Management Journal, 27(2), 246–263. https://doi.org/10.1111/1748-8583.12102
- Singh, S. K., Del Giudice, M., Chiappetta Jabbour, C. J., Latan, H., & Sohal, A. S. (2022). Stakeholder pressure, green innovation, and performance in small and medium-sized enterprises: The role of green dynamic capabilities. Business Strategy and the Environment, 31, 500–514. https://doi.org/10.1002/bse.2906
- Singh, S. K., Del Giudice, M., Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting and Social Change, 150, 119762. https://doi.org/10.1016/j.techfore.2019.119762
- Subramaniam, M., & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal, 48, 450–463. https://doi.org/10.5465/amj.2005.17407911
- Tang, G., Chen, Y., Jiang, Y., Paillé, P., & Jia, J. (2018). Green human resource management practices: Scale development and validity. Asia Pacific Journal of Human Resources, 56, 31–55. https://doi.org/10.1111/1744-7941.12147
- Tang, G., Yu, B., Cooke, F. L., & Chen, Y. (2017). High-performance work system and employee creativity: The roles of perceived organisational support and devolved management. Personnel Review, 46, 1318–1334. https://doi.org/10.1108/PR-09-2016-0235
- Wang, C., Chin, T., & Lin, J. H. (2020). Openness and firm innovation performance: The moderating effect of ambidextrous knowledge search strategy. Journal of Knowledge Management, 24, 301–323. https://doi.org/10.1108/JKM-04-2019-0198
- Wang, C. H. (2019). How organizational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management, 30(4), 666–683. https://doi.org/10.1108/JMTM-09-2018-0314
- World Economic Forum. (2023). The global risks report 2023. World Economic Forum. Available at https://extension://bfdogplmndidlpjfhoijckpakkdjkkil/pdf/viewer.html?file=https%3A%2F%2Fwww3.weforum.org%2Fdocs%2FWEF_Global_Risks_Report_2023.pdf
- Wright, P. M., Dunford, B. B., & Snell, S. A. (2001). Human resources and the resource based view of the firm. Journal of Management, 27, 701–721. https://doi.org/10.1177/014920630102700607
- Xie, X., Huo, J., & Zou, H. (2019). Green process innovation, green product innovation, and corporate financial performance: A content analysis method. Journal of Business Research, 101, 697–706. https://doi.org/10.1016/j.jbusres.2019.01.010
- Yong, J. Y., Yusliza, M. Y., Ramayah, T., Chiappetta Jabbour, C. J., Sehnem, S., & Mani, V. (2020). Pathways towards sustainability in manufacturing organizations: Empirical evidence on the role of green human resource management. Business Strategy and the Environment, 29, 212–228. https://doi.org/10.1002/bse.2359
- Zameer, H., Wang, Y., Yasmeen, H., & Mubarak, S. (2022). Green innovation as a mediator in the impact of business analytics and environmental orientation on green competitive advantage. Management Decision, 60, 488–507. https://doi.org/10.1108/MD-01-2020-0065
- Zhang, F., & Zhu, L. (2019). Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation. Business Strategy and the Environment, 28, 1012–1026. https://doi.org/10.1002/bse.2298
