AHRMR

Article Details

Vol. 6 No. 1 (2026): March

The Impact of Green HRM, Leadership, Innovation, and Psychological Climate on Business Sustainability

https://doi.org/10.35912/ahrmr.v6i1.3830
31 Mar 2026

Abstract

Purpose: This study aims to analyze the effects of Green Human Resource Management, Green Transformational Leadership, and Green Innovation on Business Sustainability, with Green Psychological Climate as a mediating variable among Forest Farmer Groups under the guidance of the Pasaman Raya Protected Forest Management Unit.

Research Methodology: This study employed a quantitative survey method involving 200 members of Forest Farmer Groups actively engaged in Kelulut Honey cultivation in Pasaman Raya, Indonesia. Data were collected using structured questionnaires and analyzed using PLS-SEM with SmartPLS software.

Results: The findings show that Green Human Resource Management, Green Transformational Leadership, and Green Innovation positively and significantly impact Business Sustainability and Green Psychological Climate. Additionally, Green Psychological Climate significantly mediated the relationships between these factors and Business Sustainability.

Conclusions: This study concludes that effective green management practices, environmentally oriented leadership, and continuous green innovation are essential for strengthening psychological support for pro-environmental behavior, which ultimately enhances business sustainability in community-based organizations.

Limitations: This study was limited to Forest Farmer Groups in Pasaman Raya and focused on Kelulut honey cultivation, which may restrict the generalization of the findings to other sectors and regions.

Contributions: This study provides empirical evidence of how green practices and leadership promote sustainability, contributing to sustainable management, environmental psychology, and community-based business development. The findings offer valuable insights for policymakers, community leaders, and development agencies aiming to support sustainable business models in rural and environmental organizations in Indonesia.

 

 

Keywords

Business Sustainability Green Human Resource Management Green Innovation Green Psychological Climate Green Transformational Leadership

How to Cite

Fitri, S., Putra, R. A. ., & Muhlisah Lubis. (2026). The Impact of Green HRM, Leadership, Innovation, and Psychological Climate on Business Sustainability. Annals of Human Resource Management Research, 6(1), 409–425. https://doi.org/10.35912/ahrmr.v6i1.3830

References

  1. Abdelhamied, H. H., Elbaz, A. M., Al-Romeedy, B. S., & Amer, T. M. (2023). Linking green human resource practices and sustainable performance: the mediating role of job satisfaction and Green motivation. Sustainability, 15(6), 4835. doi:https://doi.org/10.3390/su15064835
  2. 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
  3. Ahmad, S. (2015). Green human resource management: Policies and practices. Cogent Business & Management, 2(1), 1030817. doi:https://doi.org/10.1080/23311975.2015.1030817
  4. Al-Swidi, A. K., Gelaidan, H. M., & Saleh, R. M. (2021). The joint impact of green human resource management, leadership and organizational culture on employees’ green behaviour and organisational environmental performance. Journal of Cleaner Production, 316, 128112. doi:https://doi.org/10.1016/j.jclepro.2021.128112
  5. Ali, S. R., Hossain, M. A., Islam, K. Z., & Alam, S. S. (2024). Weaving a greener future: The impact of green human resources management and green supply chain management on sustainable performance in Bangladesh's textile industry. Cleaner Logistics and Supply Chain, 10, 100143. doi:https://doi.org/10.1016/j.clscn.2024.100143
  6. AlKetbi, A., & Rice, J. (2024). The impact of green human resource management practices on employees, clients, and organizational performance: A literature review. Administrative Sciences, 14(4), 78. doi:https://doi.org/10.3390/admsci14040078
  7. Altassan, M. (2024). The nexus between green HR practices and firm sustainable performance in Saudi Arabia manufacturing industry: The role of green innovation and green transformation leadership. Uncertain Supply Chain Management, 12(4), 2207-2220. doi:https://doi.org//10.5267/j.uscm.2024.6.010
  8. Amrutha, V., & Geetha, S. (2020). A systematic review on green human resource management: Implications for social sustainability. Journal of Cleaner Production, 247, 119131. doi:https://doi.org/10.1016/j.jclepro.2019.119131
  9. Bazrkar, A., & Moshiripour, A. (2021). Corporate practices of green human resources management. ???????, 15(1 (eng)), 97-105. doi:https://doi.org//10.17323/2500-2597.2021.1.97.105
  10. Cahyadi, A., Natalisa, D., Poór, J., Perizade, B., & Szabó, K. (2022). Predicting the relationship between green transformational leadership, green human resource management practices, and employees’ green behavior. Administrative Sciences, 13(1), 5. doi:https://doi.org/10.3390/admsci13010005
  11. Chen, Y.-S., & Chang, C.-H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of business ethics, 116(1), 107-119. doi:https://doi.org/10.1007/s10551-012-1452-x
  12. Dhakal, B., Biswakarma, G., & Rajkarnikar, S. (2024). Green talent management and innovative work behavior: the mediating role of transformational leadership. Journal of Ecohumanism ??????????: Transnational Press London, 3(1). doi:https://doi.org//10.62754/joe.v3i1.6535
  13. 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(4), 613-627. doi:https://doi.org/10.1002/hrm.21792
  14. Emilisa, N., & Citra, F. L. (2022). Pengaruh knowledge hiding, psychological distress, psychological stress terhadap job performance pegawai RSJ. Studi Ilmu Manajemen dan Organisasi, 3(2), 287-301. doi:https://doi.org/10.35912/simo.v3i2.1296
  15. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. doi:https://doi.org/10.1108/EBR-11-2018-0203
  16. Ibrahim, S. (2022). Driving eco-innovation through green transformational leadership: The power of employee voluntary green behavior. Qlantic Journal of Social Sciences and Humanities, 3(2), 59-76. doi:https://doi.org/10.55737/qjssh.674872860
  17. Ismail, A. H., Ritchi, H., & Adrianto, Z. (2019). The influence of management domain on financial business processes in official regional apparatus organization of Banten Province. Studi Akuntansi, Keuangan, dan Manajemen, 4(2), 377-389. doi:https://doi.org/10.35912/sakman.v4i2.3886
  18. Jackson, S. E., Renwick, D. W., Jabbour, C. J., & Muller-Camen, M. (2011). State-of-the-Art and Future Directions for Green Human Resource Management: Introduction to the Special Issue. German Journal of Human Resource Management, 25(2), 99-116. doi:https://doi.org/10.1177/239700221102500203
  19. Jatoi, Z., Abrar, F., Abbas, N., & Khan, W. (2025). Exploring the interplay between green hrm practices and leadership styles: A multi-sectoral study on their impact on organizational sustainability performance and innovation. Research Journal for Social Affairs, 3(3), 135-149. doi:https://doi.org/10.71317/RJSA.003.03.0207
  20. Khan, M. H., & Muktar, S. N. (2020). A bibliometric analysis of green human resource management based on scopus platform. Cogent Business & Management, 7(1), 1831165. doi:https://doi.org/10.1080/23311975.2020.1831165
  21. Khan, W., Nisar, Q. A., Roomi, M. A., Nasir, S., Awan, U., & Rafiq, M. (2024). Green human resources management, green innovation and circular economy performance: the role of big data analytics and data-driven culture. Journal of Environmental Planning and Management, 67(10), 2356-2381. doi:https://doi.org/10.1080/09640568.2023.2189544
  22. 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. doi:https://doi.org/10.1016/j.ijhm.2018.04.007
  23. Kissi, E. A., Segbenya, M., & Amoah, J. O. (2024). Environmental sustainability among workers in Ghana: The role of green human resource management. Heliyon, 10(13). doi:https://doi.org/10.1016/j.heliyon.2024.e33380
  24. Li, Y., Pertheban, T. R., Li, Q., & Guang-Wen, Z. (2025). The green innovation gateway: how technological capabilities and environmental strategies drive sustainability performance in manufacturing firms. Sage Open, 15(3), 1-21. doi:https://doi.org/10.1177/21582440251360842
  25. Luo, J., Zaman, S. I., Jamil, S., & Khan, S. A. (2025). The future of healthcare: green transformational leadership and GHRM’s role in sustainable performance. Benchmarking: An International Journal, 32(3), 805-837. doi:https://doi.org/10.1108/BIJ-08-2023-0523
  26. Mousa, S. K., & Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of Cleaner Production, 243, 118595. doi:https://doi.org/10.1016/j.jclepro.2019.118595
  27. Mulyantini, S., Surbakti, L. P., Maulana, A., & Wibawaningsih, E. J. (2025). Authentic culinary business for sustainable tourism: strategy, experience, motivation and value. Studi Akuntansi, Keuangan, dan Manajemen, 5(1), 143-159. doi:https://doi.org/10.35912/sakman.v5i1.4279
  28. Mustafa, K., Hossain, M. B., Ahmad, F., Ejaz, F., Khan, H. G. A., & Dunay, A. (2023). Green human resource management practices to accomplish green competitive advantage: A moderated mediation model. Heliyon, 9(11). doi:https://doi.org/10.1016/j.heliyon.2023.e21830
  29. Nazir, M. W., Zunhuwan, S., Zulfiqar, A., Khan, H., & Bangash, S. A. (2025). Green HRM and Leadership Style as Drivers of Sustainable Innovation Examining the Mediating Role of Knowledge Sharing. Journal of Social Sciences Review, 5(1), 314-325. doi:https://doi.org//10.62843/jssr.v5i1.493.
  30. Norton, T. A., Zacher, H., & Ashkanasy, N. M. (2014). Organisational sustainability policies and employee green behaviour: The mediating role of work climate perceptions. Journal of Environmental Psychology, 38, 49-54. doi:https://doi.org/10.1016/j.jenvp.2013.12.008
  31. Oktaysoy, O., Topcuoglu, E., Selvi, M. S., Uygungil-Erdogan, S., ?ahin, Y., Tatar, V., . . . Karafakioglu, E. (2025). Psychological green climate as a mediator between green transformational leadership, innovation, and environmental awareness. Frontiers in Psychology, 16, 1701658. doi:https://doi.org/10.3389/fpsyg.2025.1701658
  32. Paillé, P. (2025). Green human resource practices for individual environmental performance: A meta?review. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 42(2), 288-301. doi:https://doi.org/10.1002/cjas.1768
  33. Pham, T. T., Wu, W. Y., Liao, Y. K., & Phou, S. (2025). The effects of transformational leadership, sustainability innovation, and green practices on green performance using balanced scorecard approach. International Journal of Asian Business and Information Management (IJABIM), 16(1), 1-26. doi:https://doi.org//10.4018/IJABIM.383944.
  34. Robertson, J. L., & Barling, J. (2013). Greening organizations through leaders' influence on employees' pro?environmental behaviors. Journal of Organizational Behavior, 34(2), 176-194. doi:https://doi.org/10.1002/job.1820
  35. Sarstedt, M., Adler, S. J., Rau, L., & Schmitt, B. (2024). Using large language models to generate silicon samples in consumer and marketing research: Challenges, opportunities, and guidelines. Psychology & Marketing, 41(6), 1254-1270. doi:https://doi.org/10.1002/mar.21982
  36. Setyaningrum, R., & Muafi, M. (2023). Green human resource management, green supply chain management, green lifestyle: Their effect on business sustainability mediated by digital skills. Journal of Industrial Engineering and Management, 16(1), 1-26. doi:https://doi.org/10.3926/jiem.4152
  37. Setyaningrum, R. P., & Muafi, M. (2023). Green Human resources management on business performance: the mediating role of green product innovation and environmental commitment. International Journal of Sustainable Development & Planning, 18(1). doi:https://doi.org//10.18280/ijsdp.180122.
  38. Shah, P., Singh Dubey, R., Rai, S., Renwick, D. W., & Misra, S. (2024). Green human resource management: A comprehensive investigation using bibliometric analysis. Corporate Social Responsibility and Environmental Management, 31(1), 31-53. doi:https://doi.org/10.1002/csr.2589
  39. Sun, J., Faraz, A. Z., Sarfraz, M., & Arshad, S. (2025). Dual pathways to regenerative business: how green leadership and climate anxiety drive circular economy Success. Sustainable Development. doi:https://doi.org/10.1002/sd.70408
  40. Susanto, A. B., Prajitiasari, E., & Awwaliyah, I. (2024). The role of green human resource management in promoting environmentally responsibility behavior in sustainable tourism model. Journal of Infrastructure, Policy and Development, 8(8), 5739. doi:https://doi.org//10.24294/jipd.v8i8.5739.
  41. Tahir, A. H., Umer, M., Nauman, S., Abbass, K., & Song, H. (2024). Sustainable development goals and green human resource management: A comprehensive review of environmental performance. Journal of Environmental Management, 370, 122495. doi:https://doi.org/10.1016/j.jenvman.2024.122495
  42. Ureña Espaillat, H. J., Briones Peñalver, A. J., & Bernal Conesa, J. A. (2022). Influencing responsible green innovation in Dominican agribusiness performance. Corporate Social Responsibility and Environmental Management, 29(3), 675-685. doi:https://doi.org/10.1002/csr.2228
  43. Vázquez?Brust, D., Jabbour, C. J. C., Plaza?Úbeda, J. A., Perez?Valls, M., de Sousa Jabbour, A. B. L., & Renwick, D. W. (2023). The role of green human resource management in the translation of greening pressures into environmental protection practices. Business Strategy and the Environment, 32(6), 3628-3648. doi:https://doi.org/10.1002/bse.3319
  44. Veerasamy, U., Joseph, M. S., & Parayitam, S. (2024). Green human resource management and employee green behaviour: participation and involvement, and training and development as moderators. South Asian Journal of Human Resources Management, 11(2), 277-309. doi:https://doi.org/10.1177/23220937221144361
  45. Weber, P., & Kassab, E. (2024). The employee green behavior of green transformational leadership, green human resource management on the sustainable performance. Journal of Infrastructure, Policy and Development, 8(8), 4630. doi:https://doi.org//10.24294/jipd.v8i8.4630.
  46. Wiredu, J., Yang, Q., Saljoughipour, S., Olufunke, E. C., Sampene, A. K., & Brenya, R. (2023). Stimulating environmental performance through green human resource practice: Does green transformational leadership matter. Journal of Infrastructure, Policy and Development, 7(1), 2127. doi:https://doi.org//10.24294/jipd.v7i1.2127
  47. Yang, M., & Li, Z. (2023). The influence of green human resource management on employees’ green innovation behavior: The role of green organizational commitment and knowledge sharing. Heliyon, 9(11). doi:https://doi.org/10.1016/j.heliyon.2023.e22161
  48. Yong, J. Y., Yusliza, M.-Y., Ramayah, T., & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364-374. doi:https://doi.org/10.1016/j.jclepro.2018.12.306
  49. Younis, Z., & Hussain, S. (2023). Green Transformational Leadership: Bridging the gap between Green HRM Practices and Environmental Performance through Green Psychological Climate. Sustainable Futures, 6, 100140. doi:https://doi.org/10.1016/j.sftr.2023.100140
  50. Zafar, H., & Suseno, Y. (2024). Examining the effects of green human resource management practices, green psychological climate, and organizational pride on employees’ voluntary pro-environmental behavior. Organization & Environment, 37(4), 581-609. doi:https://doi.org/10.1177/10860266241241532
  51. Zihan, W., Makhbul, Z. K. M., & Alam, S. S. (2024). Green human resource management in practice: Assessing the impact of readiness and corporate social responsibility on organizational change. Sustainability, 16(3), 1153. doi:https://doi.org/10.3390/su16031153
WhatsApp Instagram Facebook LinkedIn Email