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

• Published in: Heliyon Vol. 9; no. 1; p. e12679
• Main Authors: Ahmed, Rizwan Raheem, Akbar, Waqar, Aijaz, Maria, Channar, Zahid Ali, Ahmed, Faiz, Parmar, Vishnu
• Format: Journal Article
• Language: English
• Published: England Elsevier Ltd 01-01-2023; Elsevier
• Subjects: C12; Environmental performance; Green innovation; Human resource practices; J24; L67; Management commitment; Organizational performance; Process innovation; Product innovation; Management commitment; Product innovation; C12; Environmental performance; Organizational performance; Process innovation; L67; Human resource practices; J24; Green innovation
• ISSN: 2405-8440; 2405-8440
• DOI: 10.1016/j.heliyon.2022.e12679

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.