IMPACT OF SUSTAINABLE HRM INITIATIVES ON CORPORATE ENVIRONMENTAL PERFORMANCE: MEDIATING ROLES OF GREEN INNOVATION AND EMPLOYEE ENGAGEMENT

Abstract

This study investigates how Sustainable Human Resource Management (SHRM) initiatives influence Corporate Environmental Performance (CEP) and examines the mediating roles of Green Innovation (GI) and Employee Engagement (EE). Using a quantitative, cross-sectional design, data were collected from 250 managers and employees in manufacturing and service organizations that have implemented sustainability-oriented HR practices. SPSS was used for descriptive, reliability, validity, and correlation analyses, and AMOS was employed for Structural Equation Modeling (SEM). Measures exhibited strong internal consistency and convergent validity. Results show a significant direct effect of SHRM on CEP (β = 0.412, p < .001), confirming that green-oriented recruitment, training, performance management, and rewards are associated with stronger environmental outcomes. Mediation analysis reveals that GI partially transmits the effect of SHRM to CEP (indirect β = 0.215, p < .001), while EE fully mediates the relationship (indirect β = 0.301, p < .001), indicating that behavioral engagement slightly outweighs process/technology improvements in translating HR policies into measurable environmental performance. Overall model fit met accepted thresholds (e.g., SRMR = 0.058). The study advances the literature by presenting a dual-mediator framework that integrates technological and behavioral pathways from SHRM to CEP. Practically, it offers a roadmap for leaders and policymakers to pair HR levers with innovation investments and engagement practices to amplify environmental performance. Limitations include the cross-sectional design and potential sectoral or regional variation; future work should employ longitudinal designs and incorporate additional contextual variables such as green leadership and organizational culture.