The current literature in the environmental management domain proposes that employee behaviour is essential to enhancing environmental outcomes, but few studies have examined how human resource management (HRM) is linked with the green innovation of organisations. The study aims to investigate the interrelationship between green human resource management and green innovation in the hotel industry through the mediation of green human capital and environmental knowledge and moderation of managerial environmental concerns (MEC). The study was conducted on 209 participants from several occupational levels, including frontline workers, entry-level management, middle management, and top management employees of various hotel chains in Pakistan. Data were collected through stratified random sampling and analysed using the partial least structural equation modelling (PLS-SEM) technique. Resultantly, GHRM positively contributed to the green innovation of organisations. The mediating roles of green human capital and environmental knowledge were also statistically significant. Furthermore, the results reveal that the link between GHRM and green human capital is stronger with MEC as a moderator. The study contributes to the body of knowledge by investigating environmental protection based on the human capital theory through empirical evidence on hypothesised relationships. Moreover, the study extends the GHRM scope by adding predictors such as environmental knowledge for efficient hotel industry performance.
Numerous environmental concerns have been raised due to rapid economic progress and development (Y. J. Kim, Kim, Choi, & Phetvaroon, 2019; Watson & Tidd, 2018). The hotel industry’s actions may create environmental constraints, such as loss of natural resources, climate change, and discharge of different environmental toxins which cause water, air, light, and sound pollution and wildlife extinction. Various firms and governments have recognised the significance of environmental sustainability for economic and social development. The topic creates a need for public attention towards the environmental or green issues, which include conversion, recycling, and renewable sources of energy (Ecer, Pamucar, Mardani, & Alrasheedi, 2021). Industries attempt to follow environmentally responsible behaviours following pressure from corporate, stakeholders, and environmental rules (Paill´e, Boiral, & Chen, 2013). The GHRM is a strategy to increase its popularity and achieve environmental objectives (Guerci, Longoni, & Luzzini, 2016; Tang, Chen, Jiang, Paille, & Jia, 2018). In order to gain a competitive edge and the best environmental performance, GHRM practices have become essential for innovativeness, which affects customer satisfaction, trust, credibility, and preference in the hotel industry (Hollebeek & Rather, 2019; E.; Kim, Tang, & Bosselman, 2019; Yen, Teng, & Tzeng, 2020).
The current study enhances the existing literature on improving environmental performance, specifically in Pakistani hospitality. The GHRM methods were linked to green human capital among hospitality workers. Summarily, hotels may increase their green human capital by employing conscientious staff, providing training and development, and maintaining green discipline. The findings suggest that green human capital motivates employees to believe in their ability to conduct green behaviours as they possess the necessary skills, talents, and processes. Ultimately, the situation raises environmental knowledge, which increases innovation for environmental performance.
The MEC is needed to meet organisational environmental expectations and standards, which may lead to green innovation. The findings are not limited to intellectual conclusions and demonstrated how to utilise human capital to improve environmental knowledge among hotel personnel, thus enhancing hotel environmental performance. The study provided proof from a process viewpoint of how GHRM methods increase innovation when combined with environmental knowledge. The study also extended the existing knowledge on the theory of human capital by emphasising GHRM strategies that might produce human capital rather than behaviour reinforcement.