The Impact of Green Human Resource Management on Sustainable Performance: The Mediating Role of Green Process and Product Innovation and the Moderating Role of Responsible Leadership

Introduction

In recent decades, organizations have been compelled to adopt modern management strategies in response to growing environmental and competitive pressures. Green Human Resource Management (GHRM) has attracted attention as an innovative approach for integrating environmental considerations into HRM processes. With increased awareness about environmental issues and the necessity for sustainable development, organizations are driven to leverage their human resources in sustainable and environmentally friendly ways.

In this context, the roles of green innovation in products and processes, along with responsible leadership styles, have become particularly significant in enhancing organizational sustainable performance. Understanding how GHRM affects sustainable performance—considering the mediating impact of green innovation and the moderating role of responsible leadership—is therefore a key concern. This research explores these relationships in knowledge-based companies situated in the Mashhad Science and Technology Park.

Materials and Methods

This research is applied in purpose and descriptive-correlational in method, adopting a field survey approach. The study population includes all employees of knowledge-based companies in Mashhad Science and Technology Park, totaling 600 individuals. According to Morgan’s table, a sample of 234 employees was selected using simple random sampling, ensuring equal selection probability for all members.

A standardized questionnaire, adapted from Zehan & Makhbool (2024), was utilized for data collection. The instrument consisted of five sections: GHRM (12 items), green process innovation (4 items), green product innovation (4 items), responsible leadership (3 items), and sustainable performance (7 items), measured on a 5-point Likert scale (1 = strongly disagree, 5 = strongly agree).

Content validity was confirmed by consulting domain experts, while construct validity was assessed by confirmatory factor analysis and the evaluation of convergent and discriminant validity. The reliability of the measures was determined using Cronbach’s alpha and composite reliability, both of which yielded acceptable values. Data analysis and hypothesis testing were carried out using Smart PLS software.

Findings

Data analysis indicated that GHRM had a significant and positive direct effect on sustainable performance (p < 0.05). The investigation of mediation showed that GHRM positively impacts both green product innovation and green process innovation, which in turn contribute significantly to sustainable performance. The mediation analysis confirmed that both types of green innovation play substantial intermediary roles in the relationship between GHRM and sustainable performance.

Furthermore, the moderation analysis revealed that responsible leadership significantly enhances the impact of GHRM on sustainable performance. In organizations with higher levels of responsible leadership, the positive effects of GHRM on sustainable performance were stronger.

All main hypothesized paths in the proposed conceptual model (based on Zehan & Makhbool, 2024) were supported and statistically significant. The following summarizes the primary findings:

GHRM positively influences green process innovation (β > 0, p < 0.05)
GHRM positively influences green product innovation (β > 0, p < 0.05)
Both green process and product innovation positively influence sustainable performance (β > 0, p < 0.05)
Responsible leadership moderates and strengthens the relationship between GHRM and sustainable performance

Discussion

The findings underscore the critical role of GHRM in improving the sustainable performance of organizations, especially knowledge-based companies. These results align with previous studies (Nazari & Aazami, 2023; Gholami, 2023) highlighting the importance of green innovation in organizational long-term success.

This study demonstrates that merely considering environmental issues within HRM is insufficient unless reflected in innovative processes and products. The development of green process and product innovations empowers organizations to minimize environmental impact, improve operational efficiency, and foster a culture of sustainability.

The study also sheds light on the vital function of responsible leadership, which not only supports but also amplifies the effectiveness of green HRM practices. Responsible leaders guide organizations to adopt socially and environmentally conscious strategies, thus reinforcing the impact of GHRM on sustainable outcomes.

By integrating human capital management with environmental innovation strategies and responsible leadership, organizations—particularly knowledge-based ones—can enhance their adaptability, drive long-term competitiveness, and create enduring value for society and stakeholders.

Conclusion

Based on the results, GHRM directly and indirectly contributes to sustainable organizational performance through enhancing green process and product innovation. The presence of responsible leadership moderates and intensifies these effects. It is therefore recommended that managers and policymakers promote green HRM policies, encourage a culture of green innovation, and develop responsible leaders to foster sustainable organizational development.

Theoretically, this research contributes to the advancement of the analytical framework regarding the interplay between GHRM, green innovation, and responsible leadership. Practically, it provides actionable insights for managers of knowledge-based companies aiming for sustainable growth. Organizations are advised to invest in employee training, empowerment, and motivation to engage actively in green innovation, meeting increasing environmental regulations and creating sustainable value.