The Effect of GHRM and GSCM on Firm Performance: The Moderating Role of Eco-Innovation

Sourav Paul Chowdhury, Saiful Islam, Rafia Akhtar, Lima Nasrin Eni, Miss. Tufika Rahman Medha · 10.63414/jeas.v9.n1.2025.39

Abstract

This research meticulously investigates the influence of Green Human Resource Management (GHRM) and Green Supply Chain Management (GSCM) on the overall firm performance, placing significant stress on the moderating role of eco-innovation within this context. The research adopts a comprehensive and multifaceted approach integrating and analysing data from a diverse range of industries. A quantitative research method was employed using structured survey questionnaires, and data were collected from 304 respondents across various manufacturing firms. Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied to examine the hypothesized relationships among the constructs. It aims at assessing the positive contribution of environmentally friendly practices in both human resource management as well as supply chain management broadening organizational performance metrics. The findings reveal that both GHRM and GSCM are indeed instrumental in enhancing the performance of firms, thereby underscoring the critical importance of adopting environmentally sustainable practices within corporate strategies. Nevertheless, it is noteworthy that eco-innovation exhibited an insignificant moderating influence on the relationship of GHRM and firm performance, implying its contingent impact on other contextual factors were not fully explored within the scope of this study. Therefore, this study provides invaluable insights for practitioners and policymakers alike, highlighting the need for the strategic implementation of green practices to concurrently achieve both economic and ecological advantages. Furthermore, the study identifies several promising areas for future research including the exploration of additional moderating variables and the necessity of conducting longitudinal studies for gaining a nuanced understanding of the complex relationships among GHRM, GSCM, eco-innovation, and overall firm performance outcomes.

Conclusion

This assessment diligently investigated the influence of GHRM and GSCM on the advancement of organizational performance, especially concerning the moderating elements of eco-innovation. The results reveal that both GHRM and GSCM practices significantly enhance firm performance, aligning with existing scholarly work that endorses the integration of environmental sustainability within HRM and supply chain practices. Nevertheless, eco-innovation did not significantly moderate the GHRM-performance relationship, indicating that its moderating effect may be affected by contextual factors, thereby suggesting areas for further inquiry by researchers and emphasizing the necessity for practitioners to implement comprehensive green practices for dual economic and ecological advantages.

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