A SEM Approach to Explore the Green Version of Human Resource Management and Supply Chain Management Practices to Optimize the Organization Performance

This research aims to identify the relationships between green human resources management bundle practices (GnHRM) and green supply chain management practices (GnSCM) on organization performance (i.e. environmental and financial performance). A quantitative method is employed to collect data from a customized survey of 230 companies operating in Pakistan. The data analysis was conducted using the partial least squares structural equation modeling (SEM). The findings of the research indicate that both GnHRM and GnSCM have a significant impact on organizational performance jointly. Indeed, the findings showed that GnHRM has a direct impact on organizational performance, with the GnSCM that mediate this effect. In particular, green information system (GIS) and Eco design (ECO) positively mediate between GnHRM and organization performance, whereas internal green supply chain management practices (IGSCM) mediate only the relationship between GnHRM and environmental performance (EP), thus, the lack of awareness among manufacturers for the effectiveness of GnSCM practices enhanced economic and environmental aspects of organizational performance, the need for greater emphasis in green training programs. This research is considered to be the first empirical study exploring the effect of the GnHRM and GnSCM on the organization's performance in Pakistan, added value to the existing literature of GnHRM and GnSCM practices by responding to recent calls to test the joint impact on the organization performance. In the end, the theoretical and managerial implications, limitations of the current study, and future research directions have been discussed