This study aims to evaluate the environmental performance of small and medium-sized enterprises (SMEs) through green human resource management (GHRM), green transformational leadership (GTFL), and green innovation (GI). This study is based on resource-based view theory and ability-motivation-opportunity theory. We collected data from 315 manufacturing small and medium-sized enterprises using a survey questionnaire. We applied structural equation modeling using Smart partial least squares to analyze the collected data. Results of the study indicate that green ability and green motivation have a significant impact on environmental performance and green innovation mediates the relationship between GHRM practices and environmental performance. Findings also revealed that green transformational leadership's moderation strengthens the relationship between green ability and green innovation, but surprisingly weakens the relationship between green motivation, green opportunity, and green innovation. The paper provides a valuable understanding and novel approach for directors of SMEs in developing countries to improve their environmental performance through GHRM and green innovation.
Keywords: Environmental performance; GHRM; Green innovation; Green transformational leadership; SEM; Smart PLS.
© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.