The role of green innovation on environmental and organizational performance: Moderation of human resource practices and management commitment

Rizwan Raheem Ahmed; Waqar Akbar; Maria Aijaz; Zahid Ali Channar; Faiz Ahmed; Vishnu Parmar

doi:10.1016/j.heliyon.2022.e12679

The role of green innovation on environmental and organizational performance: Moderation of human resource practices and management commitment

Heliyon. 2023 Jan 4;9(1):e12679. doi: 10.1016/j.heliyon.2022.e12679. eCollection 2023 Jan.

Authors

Rizwan Raheem Ahmed¹, Waqar Akbar², Maria Aijaz², Zahid Ali Channar³, Faiz Ahmed⁴, Vishnu Parmar⁵

Affiliations

¹ Faculty of Management Sciences, Indus University, Gulshan-17, Karachi 75300, Pakistan.
² Faculty of Management Sciences, Shaheed Zulfikar Ali Bhutto Institute of Science & Technology, Clifton-99, Karachi 75600, Pakistan.
³ Faculty of Social Sciences, Sindh Madresstul Islam, Karachi 74000, Pakistan.
⁴ Department of Public Administration, University of Karachi, Karachi 75270, Pakistan.
⁵ Institute of Business Administration, University of Sindh, Jamshoro 76080, Pakistan.

Abstract

Green innovation is an essential and burning topic for environmental and organizational performance. Therefore, this research aims to examine the effect of green innovation on environmental performance, which leads to organizational performance. Another objective is to measure the impact of two dimensions of green innovation, such as green process & green product measures, on green innovation. The second prime aim of this research is to evaluate the moderation of management commitment & human resource practices in an association between green innovation and organizational & environmental performance. A total of 320 employees provided their perspectives on a self-administrated questionnaire from the textile industry of Pakistan. We have employed SEM-based multivariate modeling to examine the data. This research has measured the reflective indicators measurement model through confirmatory factor analysis, an obvious choice of structural equation modeling to examine observed and unobserved variables and indicators using PLS-SEM (partial least square-structural equation modeling). The research findings reveal a positive & significant effect of product & process innovation on green innovation. Further, green innovation significantly impacts environmental and organizational performance. A two-way interaction (moderation) of human resource practices & green innovation does not have a cogent moderating effect on organizational & environmental performance. However, management commitment has a significant moderation between green innovation & organizational performance. A three-way interaction (moderated moderation) model finds a substantial effect on organizational attainment but an insignificant impact on environmental performance. The research outcomes significantly contribute and suggest that practitioners and policymakers must institutionalize green innovation practices in their organizations to enhance their organizational and environmental performance. HR practitioners play a vibrant role in creating green norms and organizational culture. The study findings also suggest that management commitment to green innovation advocates organization-level transformations toward adopting green practices.

Keywords: Environmental performance; Green innovation; Human resource practices; Management commitment; Organizational performance; Process innovation; Product innovation.