FROM GREEN HR INVESTMENT TO SUPPLY CHAIN SUSTAINABILITY: THE MEDIATING ROLE OF EMPLOYEE GREEN BEHAVIOR

Abstract

Although it has become known that successful implementation of GSCM depends on workforce behavior, the mechanism by which the practices of Green Human Resource Management (GHRM) can lead towards successful implementation of GSCM is still not empirically verified. Based on Ability –Motivation–Opportunity (AMO) model and Social Exchange Theory, this study proposes and tests Employee Green Behavior (EGB) as the behavior mediator between the GHRM–GSCM relationship. The six industry sectors of multinational company (MNC) in Pakistan were sampled using stratified random sampling with total of N = 370 employees and data were analyzed in SmartPLS 4.1.1.6 software. The measurement model established excellent fit (CFI = .995; TLI = .995; RMSEA = .015; SRMR = .033; GFI = .944). All four hypotheses were supported as GHRM was a strong predictor of EGB (β = .496, p < .001; f² = .327) and EGB was a significant predictor of the GSCM implementation (β = .401, p < .001). The results not only highlight that the GHRM can be considered strategically important GSCM enabler but offer some practical implications for managers who want to use green training, green performance appraisal & employee environmental participation to develop workforce dispositions that support maintaining of supply chain sustainability practices.