Article Details
Vol. 6 No. 2 (2026): June
Sustainable Leadership and Green Innovation: The Role of Green HRM in Indonesian Export MSMEs
Abstract
Purpose: Based on the Ability–Motivation–Opportunity (AMO) and Resource-Based View (RBV) frameworks, this study aims to analyze the direct and indirect relationships between Sustainability Leadership (SL), Green Human Resource Management (GHRM), and Green Innovation (GI) in export-focused MSMEs in Indonesia.
Research Methodology: The research design was quantitative with a survey method. Data were selected through purposive sampling from 284 respondents. The research questionnaire used a five-point Likert scale. Data analysis used Structural Equation Modeling (SEM) with Partial Least Squares (PLS).
Results: The findings indicate that Sustainable Leadership has no direct effect on Green Innovation, however, it has a significant effect on GHRM. Furthermore, GHRM significantly increases Green Innovation and is able to mediate the relationship between Sustainable Leadership and Green Innovation.
Conclusions: The implementation of GHRM serves as a key factor that bridges Sustainability Leadership and Green Innovation within the context of export MSMEs.
Limitations: This study only examines Sustainable Leadership, GHRM, and Green Innovation, without considering other variables such as organizational culture, government support, technology, and market pressures.
Contributions: This study fills a research gap by integrating the AMO and RBV frameworks to explain the mechanism by which Sustainable Leadership influences Green Innovation through GHRM in the context of Indonesian export MSMEs, a finding that remains limited in the empirical literature. These findings highlight the importance of developing sustainable leadership programs, adopting GHRM practices, and encouraging green innovation to achieve sustainable performance among export MSMEs.
Keywords
How to Cite
Download Citation
References
- Aggarwal, P., & Agarwala, T. (2023). Relationship of green human resource management with environmental performance: mediating effect of green organizational culture. Benchmarking: An International Journal, 30(7), 2351-2376. doi:https://doi.org/10.1108/BIJ-08-2021-0474
- Alfarizi, M. (2023). Kinerja Berkelanjutan UMKM Kuliner Indonesia dalam Praktik Standar Halal: Investigasi Kapabilitas Internal-Tekanan Eksternal Bisnis. Journal Financial, Business and Economics, 1(1), 21-55. doi:https://doi.org/10.57176/jfine.v1i1.1
- Asiaei, K., O'Connor, N. G., Barani, O., & Joshi, M. (2023). Green intellectual capital and ambidextrous green innovation: The impact on environmental performance. Business strategy and the environment, 32(1), 369-386. doi:https://doi.org/10.1002/bse.3136
- Atatsi, E. A., Azila-Gbettor, E. M., & Mensah, C. (2021). Predicting task performance from psychological ownership and innovative work behaviour: A cross sectional study. Cogent Business & Management, 8(1), 1917483. doi:https://doi.org/10.1080/23311975.2021.1917483
- Awan, U., Braathen, P., & Hannola, L. (2023). When and how the implementation of green human resource management and data?driven culture to improve the firm sustainable environmental development? Sustainable Development, 31(4), 2726-2740. doi:https://doi.org/10.1002/sd.2543
- Bari, N., Chimhundu, R., & Chan, K.-C. (2022). Dynamic capabilities to achieve corporate sustainability: a roadmap to sustained competitive advantage. Sustainability, 14(3), 1531. doi:https://doi.org/10.3390/su14031531
- Bataineh, M. J., Sánchez?Sellero, P., & Ayad, F. (2024). Green is the new black: How research and development and green innovation provide businesses a competitive edge. Business strategy and the environment, 33(2), 1004-1023. doi:https://doi.org/10.1002/bse.3533
- Bindeeba, D. S., Bakashaba, R., Tukamushaba, E. K., & Atuhaire, S. (2025). From green HRM to sustainable business performance: a two-Stage meta-analytic SEM of the mediating role of green innovation. Cogent Business & Management, 12(1), 2536678. doi:https://doi.org/10.1080/23311975.2025.2536678
- Bratamanggala, R. I., & Hendayana, Y. (2024). Sustainability and technology use in SMEs: A pathway to green innovation: Keberlanjutan dan penggunaan teknologi pada UMKM: Jalan menuju inovasi ramah lingkungan. J-CEKI: Jurnal Cendekia Ilmiah, 3(6), 6772-6781. doi:https://doi.org/10.56799/jceki.v3i6.5581
- Campos?García, I., Alonso?Muñoz, S., González?Sánchez, R., & Medina?Salgado, M. S. (2024). Human resource management and sustainability: Bridging the 2030 agenda. Corporate Social Responsibility and Environmental Management, 31(3), 2033-2053. doi:https://doi.org/10.1002/csr.2680
- Chen, Y. S., & Yan, X. (2022). The small and medium enterprises' green human resource management and green transformational leadership: a sustainable moderated?mediation practice. Corporate Social Responsibility and Environmental Management, 29(5), 1341-1356. doi:https://doi.org/10.1002/csr.2273
- Chowdhury, S. R., Mendy, J., Islam, M. A., & Rahman, M. (2026). Advancing Green Human Resource Management Aspects and Practices in Organizations: The Power of Fuzzy Importance Performance Analysis. Sustainable Development. doi:https://doi.org/10.1002/sd.70787
- Correia, A. B., Farrukh Shahzad, M., Moleiro Martins, J., & Baheer, R. (2024). Impact of green human resource management towards sustainable performance in the healthcare sector: role of green innovation and risk management. Cogent Business & Management, 11(1), 2374625. doi:https://doi.org/10.1080/23311975.2024.2374625
- Das, A., Alam, M. S., & Hawlader, M. R. (2025). Unveiling the impact of green innovation on organizational performance: An empirical study on FMCG sector in Bangladesh. Annals of Management and Organization Research, 7(2), 247-267. doi:https://doi.org/10.35912/amor.v7i2.3241
- Dermoredjo, S. K., Darmawan, D. H. A., Dani, F. Z. D. P., Yusuf, E. S., Pasaribu, S. M., Sayaka, B., . . . Antriyandarti, E. (2025). The global sway of Indonesian palm oil: An export analysis. Journal of Agriculture and Food Research, 22, 102064. doi:https://doi.org/10.1016/j.jafr.2025.102064
- Dong, X., Li, Q., Han, Y., & Han, Z. (2026). Empowered to Go Green: How Environmental Leadership and Organizational Culture Transform Employee Behavior. Sustainability, 18(3), 1365. doi:https://doi.org/10.3390/su18031365
- Fabrizi, A., Guarini, G., & Meliciani, V. (2024). The impact of environmental research networks on green exports: An analysis of a sample of European countries. Structural Change and Economic Dynamics, 69, 143-154. doi:https://doi.org/10.1016/j.strueco.2023.11.017
- Faeni, R. P., Faeni, D. P., Pujiati, H., & Cahaya, Y. F. (2025). From Green HRM to sustainability: A study of ground handling in java with employee performance as a key link. Annals of Human Resource Management Research, 5(3), 305-320. doi:https://doi.org/10.35912/ahrmr.v5i3.2991
- Farmanesh, P., Solati Dehkordi, N., Vehbi, A., & Chavali, K. (2025). Artificial intelligence and green innovation in small and medium-sized enterprises and competitive-advantage drive toward achieving sustainable development goals. Sustainability, 17(5), 2162. doi:https://doi.org/10.3390/su17052162
- Fontes, A., F. Pereira, L., & Dias, Á. (2026). Temporary or sustainable? Strategic and leadership perspectives on the four-day work week. International Journal of Organizational Analysis, 1-26. doi:https://doi.org/10.1108/IJOA-09-2025-5915
- Grazini, C., & Guarini, G. (2025). Environmental policy and green export competitiveness: The enhancing effect of economic complexity. PSL Quarterly Review, 78(312), 27-50. doi:https://doi.org/10.13133/2037-3643/18917
- Hashim, M., Márquez, F. P. G., Baig, S. A., Asif, M., Nazim, M., & Sibtain, M. M. (2026). Sustainable Leadership and Green Innovations: Catalysts for Sustainable Business Performance in the Textile Sector of Pakistan. Business strategy and the environment, 35(2), 2675-2694. doi:https://doi.org/10.1002/bse.70301
- Hassan, S., & Jehangir, M. (2025). Building Sustainable Futures: How Green HRM Drives Firm Performance Through Leadership and Innovation in Pakistan's Construction Industry. Journal of Management & Social Science, 2(5), 56-91.
- Hatipo?lu, Z., & Akduman, G. (2025). The mediating role of sustainable leadership in green human resource management practices and organizational commitment: A case study in Turkey. Sustainability, 17(11), 4991. doi:https://doi.org/10.3390/su17114991
- Hu, L., Chang, T.-W., Lee, Y.-S., Yen, S.-J., & Ting, C.-W. (2023). How does sustainable leadership affect environmental innovation strategy adoption? The mediating role of environmental identity. International Journal of Environmental Research and Public Health, 20(1), 894. doi:https://doi.org/10.3390/ijerph20010894
- Huma, Z., Garcia Meca, E., Martínez?Ferrero, J., & Hussain, N. (2026). Green Human Resource Management (GHRM) and Environment Social Governance (ESG): A Systematic Literature Review. Corporate Social Responsibility and Environmental Management, 1-21. doi:https://doi.org/10.1002/csr.70436
- Ichdan, D. A., & Maryani, M. (2024). Green human resource management practices in the manufacturing industry: A sustainable approach. Annals of Human Resource Management Research, 4(1), 29-42. doi:https://doi.org/10.35912/ahrmr.v4i1.2140
- Irani, F., & Kilic, H. (2022). An assessment of implementing green HRM practices on environmental performance: The moderating role of green process innovation. Journal of Global Hospitality and Tourism, 1(1), 16-30. doi:https://doi.org/10.5038/2771-5957.1.1.1001
- Jaganjac, B., Hansen, K. W., Lunde, H., & Hunnes, J. A. (2025). The role of organizational culture and structure in implementing sustainability initiatives. Business Ethics, the Environment & Responsibility, 34(4), 1239-1254. doi:https://doi.org/10.1111/beer.12710
- Jamshed, K., Shah, S. H. A., Majeed, Z., Al-Ghazali, B., & Jamshaid, S. (2022). Role of green leadership and green training on the green process innovation: mediation of green managerial innovation. Journal of Xidian University, 16(2), 66-72.
- Jiang, Y., Ding, X., & Zhang, J. (2025). Toward environmental efficiency: Analyzing the impact of green innovation initiatives in enterprises. Managerial and Decision Economics, 46(2), 1206-1223. doi:https://doi.org/10.1002/mde.4429
- Kareem, M. A., & Kummitha, H. R. (2025). Impact of sustainable leadership practices on green innovation: the mediating role of green organisational culture. Discover Sustainability, 6(1), 1077. doi:https://doi.org/10.1007/s43621-025-01810-9
- Khoirunnisa, K., Fridayani, H. D., & Atmojo, M. E. (2025). Analysis of Economic and Political Policies on The Performance of The Coconut Oil Export Industry in Indonesia. JPPUMA: Jurnal Ilmu Pemerintahan dan Sosial Politik UMA (Journal of Governance and Political UMA), 13(2), 209-228. doi:https://doi.org/10.31289/jppuma.v13i2.15425
- Leal Filho, W., Eustachio, J. H. P. P., Caldana, A. C. F., Will, M., Lange Salvia, A., Rampasso, I. S., . . . Kovaleva, M. (2020). Sustainability leadership in higher education institutions: An overview of challenges. Sustainability, 12(9), 3761. doi:https://doi.org/10.3390/su12093761
- Legese, M. A., Zhou, S., Tiruneh, W. A., & Ying, H. (2026). How Green HRM Enhances Sustainable Organizational Performance: A Capability-Building Explanation Through Green Innovation and Organizational Culture. Sustainability, 18(2), 764. doi:https://doi.org/10.3390/su18020764
- Mabhanda, W. (2024). The role of green innovation in promoting sustainable economic development in Gweru, Zimbabwe. Journal of Sustainable Tourism and Entrepreneurship, 5(2), 93-109. doi:https://doi.org/10.35912/joste.v5i2.1871
- Makhmut, K. D. I., Setiawan, A. R., & Manune, S. A. (2025). Strengthening green transformational leadership through green organizational culture and green self-efficacy to improve employee green behavior in sustainable organization. Annals of Human Resource Management Research, 5(4), 27-44. doi:https://doi.org/10.35912/ahrmr.v5i4.3165
- Mingaleva, Z., Shironina, E., Lobova, E., Olenev, V., Plyusnina, L., & Oborina, A. (2022). Organizational culture management as an element of innovative and sustainable development of enterprises. Sustainability, 14(10), 6289. doi:https://doi.org/10.3390/su14106289
- Nouvel, D., & Myriam, B. (2026). Signaling green, performing less green: An exploratory study on energy efficiency narratives and sustainability governance in Saudi mega-projects. International Review of Economics & Finance, 107, 105014. doi:https://doi.org/10.1016/j.iref.2026.105014
- Nurakhim, B., Pratikno, Y., Arini, D. U., Lestari, A., & Yuniria, Z. (2025). Improving the SDGs through Green HRM, Green Training, and Innovative Leadership. Annals of Human Resource Management Research, 5(4), 341-358. doi:https://doi.org/10.35912/ahrmr.v5i4.3442
- Olivia, I. P., & Pratiwi, N. M. I. (2024). Tantangan & Strategi dalam Optimalisasi Ekspor Produk Fashion dan Perhiasan Dengan Pendekatan Digital. JURNAL PENDIDIKAN DAN ILMU SOSIAL (JUPENDIS), 2(3), 259-268. doi:https://doi.org/10.54066/jupendis.v2i3.2040
- Parida, S., & Brown, K. (2021). Green human resource management and green innovation Responsible management in emerging markets: A multisectoral focus (pp. 159-183): Springer.
- Peiró, J. M., Svicher, A., & Di Fabio, A. (2023). Innovative behaviors and eudaimonic well-being: The contribution of human capital sustainability leadership to sustainable career, decent work, decent lives, and healthy lives. Australian Journal of Career Development, 32(3), 215-224. doi:https://doi.org/10.1177/10384162231202224
- Perez, J. A. E., Ejaz, F., & Ejaz, S. (2023). Green transformational leadership, GHRM, and proenvironmental behavior: An effectual drive to environmental performances of small-and medium-sized enterprises. Sustainability, 15(5), 4537. doi:https://doi.org/10.3390/su15054537
- Pradha, P. S. (2024). Sustainability Leadership in Higher Education Institutions Organization, Purpose, And Values (pp. 173-192): Routledge.
- Rajagukguk, F. R. S., Arifin, I. W., & Harahap, H. H. (2025). Pengaruh kepemimpinan hijau dan pengelolaan sdm terhadap inovasi berkelanjutan di industri berbasis green economy Di Sumatera Utara. Sibatik Journal: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi, Dan Pendidikan, 4(7), 1421-1440. doi:https://doi.org/10.54443/sibatik.v4i7.3024
- Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163, 120481. doi:https://doi.org/10.1016/j.techfore.2020.120481
- Rosyafah, S., Wanda Gema Prasadio Akbar, H., & Nitawati, E. Y. (2025). Sustainable HRM in the face of climate change: building organizational resilience through green human capital practices. Annals of Human Resource Management Research, 5(2), 113-123. doi:https://doi.org/10.35912/ahrmr.v5i2.2966
- Sajjad, A., Eweje, G., & Raziq, M. M. (2024). Sustainability leadership: An integrative review and conceptual synthesis. Business strategy and the environment, 33(4), 2849-2867. doi:https://doi.org/10.1002/bse.3631
- Samodra, V. N., Iristian, J., Sidjabat, S., Husainah, N., & Saptaria, L. (2025). Integrating green recruitment and digital technology: Indirect influence on employee performance through digital competencies. Annals of Human Resource Management Research, 5(3), 355-372. doi:https://doi.org/10.35912/ahrmr.v5i3.3162
- Saptaria, L., Soetjipto, B. E., & Wardoyo, C. (2022). Impact of the implementation of green human resources management: A study of systematic literature. Ilomata International Journal Of Management, 3(2), 264-283. doi:https://doi.org/10.52728/ijjm.v3i2.471
- Serrano-Malebrán, J., Molina, C., Garzón-Lasso, F., Arenas-Arango, S., & Ortiz-Regalado, O. (2026). Green human resource practices and sustainable advantage: evidence from the Chilean mining sector. Humanities and Social Sciences Communications, 6(2), 1-14. doi:https://doi.org/10.1057/s41599-026-06618-0
- 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. doi:https://doi.org/10.1016/j.techfore.2019.119762
- Siri, A. (2025). Green leadership and sustainable business performance: evidence from southeast asian SMES. International Journal of Economic Literature, 2(10), 1061-1077.
- Sumarlin, F. A., & Nuvriasari, A. (2024). The effect of green innovation, environmental awareness, and competitive advantage on MSME marketing performance. Research Horizon, 4(5), 189-202. doi:https://doi.org/10.54518/rh.4.5.2024.382
- Tian, H., & Wang, A. (2023). Sustainable leadership, knowledge sharing, and frugal innovation: the moderating role of organizational innovation climate. Sage Open, 13(4), 21582440231200946. doi:https://doi.org/10.1177/21582440231200946
- Toai, D. B. (2025). Green exports and sustainability trends in Vietnam's International trade: Empirical evidence. International Journal of Humanities and Social Science, 1(1), 76-83. doi:https://doi.org/10.71222/f7d1c032
- Truong, Q. X., Nguyen, P. V., Nguyen, S. T. N., & Vrontis, D. (2026). From green intellectual capital to sustainable performance: the roles of innovation, human resource management, leadership and regulations. International Journal of Contemporary Hospitality Management, 38(3), 1049-1068. doi:https://doi.org/10.1108/IJCHM-06-2025-0815
- Wang, S., Abbas, J., Sial, M. S., Álvarez-Otero, S., & Cioca, L.-I. (2022). Achieving green innovation and sustainable development goals through green knowledge management: Moderating role of organizational green culture. Journal of Innovation & Knowledge, 7(4), 100272. doi:https://doi.org/10.1016/j.jik.2022.100272
- Wang, Y. Z., & Ahmad, S. (2024). Green process innovation, green product innovation, leverage, and corporate financial performance; evidence from system GMM. Heliyon, 10(4), e25819. doi:https://doi.org/10.1016/j.heliyon.2024.e25819
- Waqar, A., Houda, M., Khan, A. M., Qureshi, A. H., & Elmazi, G. (2024). Sustainable leadership practices in construction: Building a resilient society. Environmental Challenges, 14, 100841. doi:https://doi.org/10.1016/j.envc.2024.100841
- Zargustin, D., Harmaidi, D., Nurwati, N., & Susi, N. (2025). Analysis of Indonesian coffee production, area, and consumption trends in 2022-2026: Opportunities and Challenges in Maintaining the Sustainability of the National Coffee Sector. Enrichment: Journal of Multidisciplinary Research and Development, 2(12), 1476-1481. doi:https://doi.org/10.55324/enrichment.v2i12.321
- Zhang, S., Li, Y., & Hong, A. (2025). The impact of green inclusive leadership on green innovation in Chinese SMEs: the mediating roles of green knowledge sharing and green organizational identity. Sustainability, 17(3), 1180. doi:https://doi.org/10.3390/su17031180
License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.