The Role of Green Innovation on Organizational Performance: Moderation of Human Resource Practices

Abstract

Society must collaborate to achieve green growth goals. Businesses play a crucial role in promoting environmentally friendly and sustainable development as market participants. The rise of green innovation has allowed businesses to enhance organizational performance. This study employs resource-based theory to examine human resource practices that mediate interventions. The cross-sectional research involved 350 employees from the construction industry in Lahore, Peshawar, Karachi, and Islamabad. The dataset includes a survey of employees from the Pakistani construction industry. The research utilized a quantitative analysis technique based on regression and a moderated approach. The results of SPSS data demonstrated that green innovation enhances organizational performance. The interaction analysis also revealed that green HR practices such as training, performance assessment, and employee involvement enhance this interaction, thereby supporting the moderating influence on GI and OP. The results have highlighted the strategic importance of aligning HR systems with sustainability objectives to gain the maximum benefits of green innovation. The research contributes to the existing literature on sustainable business and gives practical recommendations to companies willing to incorporate environmental responsibility into their business and people strategies.