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Previous studies have analysed the effect of human resource (HR) practices on organisational green
performance. However, this study provides a more robust analysis by highlighting the synergetic
impact of green HR practices and green organisational strategies (green management initiatives) on
firms’ environmental performance. Moreover, this research also identifies the role of green servant
leadership (SL) in implementing green management initiatives, which has been overlooked previ-
ously. Using a sample of 272 employees working in Pakistani manufacturing firms and applying
structural equation modelling technique, this research reveals that the combined impact of green
HR practices and green strategies promotes green performance through green SL as a mediator.
Therefore, the current study emphasises the need to have an integrative mechanism to enhance
green performance. Besides, the intervening role of green SL suggests that managers must exhibit
this style for the accomplishment of an organisational green agenda.
Keywords: environmental performance, green HR practices, green performance, green servant
leadership, green strategy
Key points
1 Green human resource practices and green strategies of the firm positively influence
green performance.
2 This research has also found the mediating effect of green servant leadership in the
relationship of green management initiatives and green performance.
3 HR practices such as recruiting, training, developing and rewarding must be linked
with the green agenda.
4 Leaders should exhibit a green servant leadership style to persuade their employees
to act for environmental care.
5 Green HR practices coupled with green strategy create an environment that enables
the firms to enhance their green performance.
Introduction
Organisations are now paying more attention to improving their environmental perfor-
mance. This focus has shifted due to environmentally conscious customers, environmen-
tal protection laws and stakeholders’ pressure for compliance with those laws. Although
business activities contribute positively toward the prosperity of the economy through
employment generation, they have also become a cause of environmental destruction
(Sullivan et al. 2018). Therefore, organisations are increasingly adopting green measures
to protect the natural climate. Many firms have initiated environmental management sys-
tems. For this purpose, the green performance of employees has now become the most
important contributor to the successful implementation of the organisational green
agenda (Robertson and Carleton 2018). Green performance is described as the assessment
of the relationship between a company and its environment (Olsthoorn et al. 2001). Green
performance is related to the organisational commitment toward the preservation of the
environment (Mansoor, Jahan et al. 2021). It also deals with the inclusion of environmen-
tal protection strategies in the production process. Nowadays, firms demonstrate corpo-
rate social responsibility through environmental protection initiatives, which address the
concerns of customers and multiple stakeholders (Tang et al. 2018).
Green performance has recently gained a lot of attention from researchers (Roscoe
et al. 2019). However, prior studies have not sufficiently explored how green performance
can arise from organisational-level mechanisms such as integration of green human
resource (HR) practices and green business strategies (Kim et al. 2019). Although both
green HR practices and green strategies are pivotal for environmental performance (Yus-
off et al. 2019), the impact of their integration on green performance has been neglected,
especially in the manufacturing sector. Ostroff and Bowen (2016) stressed the alignment
of strategic direction and organisational HR practices. Oke et al. (2012) found evidence
that the integration of HR initiatives and organisational policies leads to superior firm
performance.
In addition, the success of green initiatives also depends on the behaviour of leaders.
The role of leadership in promoting green performance has been widely acknowledged
(Robertson and Barling 2017). Leaders can yield multiple organisational outcomes, one of
which is green performance (Ying et al. 2020). Servant leadership (SL) has established its
distinct ability to produce a range of outcomes well above and beyond other leadership
behaviours (Hoch et al. 2018). SL is considered one of the best leadership styles for the
achievement of organisational success (Alafeshat and Aboud 2019). However, there is a
need to extend the focus of SL toward concern for the environment to persuade employees
to participate in green activities (Robertson and Barling 2017). According to Luu (2018),
environmentally focused servant leaders encourage their followers to act in accordance
with the organisational green agenda. With a bottom-up approach (i.e. employees first),
green servant leaders provide all necessary resources in order to stimulate green perfor-
mance. Although a few scholars have provided initial insights related to green SL, a com-
prehensive understanding of how green SL promotes organisational green performance is
still lacking (Luu 2018). Therefore, the current research aims to fill this gap by exploring
the synergetic impact of green strategies and green HR policies (hereafter, green manage-
ment initiatives) on green performance through the intervening role of green SL.
This study has provided several contributions to the existing body of knowledge. First,
current research uses an integrative mechanism to predict green performance in manufac-
turing firms. This synergy provides new insight into the green management literature. Sec-
ond, the current study extends the leadership literature by exploring the role of green SL
in translating green management initiatives for the promotion of environmental perfor-
mance. Hence, this research provides a novel contribution by analysing the role of green
SL, which has been overlooked in previous studies. Lastly, this study provides empirical
evidence on how and why green management initiatives and green SL are essential in
enhancing the green performance of organisations.
In addition to the aforementioned contributions, the current research provides a novel
conception because very limited prior studies have analysed the link of green management
initiatives, green SL and organisational green performance, specifically in the context of
the Pakistani cement industry. Moreover, Pakistan has become one of the most severely
impacted countries due to environmental pollution and climate change (Mumtaz et al.
2019). Therefore, the context of this work is extremely important for practitioners.
The remainder of this paper is structured as follows. The next section presents a review
of the literature and hypotheses development. The research methodology is presented in
the third section, followed by results in the fourth. Lastly, the discussion, implications,
limitations and conclusion of the study are presented.
synergetic impact of strategy and HR practices proved effective for organisational perfor-
mance. Therefore, this study postulates:
Hypothesis 1: Green management initiatives positively influence organisational green
performance.
Research methodology
Sampling and data collection
The sample was selected from seven large manufacturing firms (cement industry) of Pak-
istan. There are several reasons for this selection. First, big manufacturing firms usually
6 © 2021 Australian Human Resources Institute (AHRI).
Adil Mansoor et al.
have a well-structured and organised human resource department. Second, large manu-
facturing companies are increasingly affecting the environment. Manufacturing firms con-
tribute to the economy, but they also lead to destruction of the natural environment
(Yong et al. 2019). Lastly, stakeholders’ pressure on the manufacturing sector is mounting
for the adoption of green activities in order to minimise its environmental footprint (Cai
et al. 2019).
Data were collected through questionnaires with a simple random sampling technique,
and a cross-sectional research design was applied. A two-wave data collection process was
adopted for this investigation. Each questionnaire was coded for the purpose of matching
the responses from T1 and T2. This collection process helped in mitigating the effect of
common method variance (CMV) bias (Podsakoff et al. 2011). In the first wave (T1), 500
questionnaires were mailed to the respondents and got 339 responses. In T1, employees
were asked to provide data regarding green management initiatives and demographics.
Three months after T1, questionnaires were sent to the 339 respondents who had partici-
pated at T1. In the second wave (T2), respondents were asked to give details regarding the
remaining variables. We received 281 responses, and after the elimination of nine ques-
tionnaires that contained incomplete data, we used 272 responses for data analysis. Only
those employees were contacted for this investigation who were working in departments
of research and development, production and human resources. Employees were con-
tacted after getting approval from the human resource department.
CMV bias was mitigated through statistical and procedural measures. Applying statis-
tical measures, values of variance inflation factors (VIFs) were used to check the collinear-
ity issue. VIF values were below the 3.0. threshold level suggested by (Kock 2015), which
showed no collinearity issue. Considering procedural measures, the cover letter was
attached with questionnaires that clarified the purpose of the research. Besides, confiden-
tiality and anonymity of responses were also ensured (Podsakoff et al. 2003). Double-
barreled, vague and complicated syntax were avoided in questions, which would have cre-
ated problems at the comprehension stage (Tourangeau et al. 2000). Therefore, concise
questions with simple wording were used to minimise the effect of CMV bias (Podsakoff
et al. 2011).
Research measures
A twelve-item scale developed by Liden et al. (2008) was used to gauge the employees’ per-
ceptions of green SL. This scale was also adapted by Luu (2020b). A four-item scale
adapted from Paille et al. (2014) was used to measure organisational green performance.
Green strategy implementation was assessed through the scale of Banerjee et al. (2003).
This scale comprised seven items. Green HR practices were measured through a six-item
scale developed by Dumont et al. (2017).
Demographic profile
Table 1 presents the demographic attributes of the respondents. It is evident that male
respondents (78.28%) outnumbered female respondents (21.32%). Moreover, most of the
respondents belong to the 25- to 30-year age-group, followed by the 31- to 39-year age-
group. Sixty-three per cent of respondents had master’s degrees, while 36 per cent of
employees had bachelor’s degrees.
Measurement model
Considering the recommendations of Hair et al. (2017), the measurement model was
assessed by establishing its convergent validity, composite reliability and discriminant
validity. Table 2 presents the values of Cronbach’s alpha, and all variables have values
greater than the threshold level of 0.70 recommended by Fornell and Larcker (1981). In
addition, according to Hair et al. (2019), composite reliability values ranging from 0.7 to
0.9 are considered ‘good’. This established the composite reliability of the measurement
Gender
Male 214 78.68
Female 58 21.32
Total 272
Age
Below 25 2 0.74
25–30 164 60.29
31–39 80 29.41
40–49 22 8.09
Above 50 4 1.47
Total 272
Education
Bachelor’s 98 36.03
Master’s 172 63.24
Doctoral 2 0.74
Total 272
model as all values are between 0.7 to 0.9. Values of average variance extracted (AVE)
establish convergent validity. Fornell and Larcker (1981) suggested that AVE values above
0.5 represent the convergent validity of constructs. As shown in Table 2, AVE values are
above 0.5; therefore, this also established the convergent validity.
Heterotraite-monotrait (HTMT) values should be used to check discriminant validity
(Henseler et al. 2015). HTMT values below 0.85 established discriminant validity (Kline
2015); hence, this is also achieved in the proposed model (Table 3).
Structural model
The Bootstrapping technique was applied to examine the hypothesised relationship
between variables. Table 4 shows that all hypotheses are supported. Both green manage-
ment initiatives and green SL were found positively related with organisational green per-
formance (b = 0.60, p = 0.00; b = 0.41, p = 0.00) respectively. Moreover, the connection
between green management initiatives and green SL was also empirically established
(b = 0.36, p = 0.00). Lastly, the mediation effect of green SL was also found in the green
management initiatives-green performance link.
Following the recommendations of Nitzl et al. (2016) for mediation analysis, the rela-
tionship of green management initiatives and green SL was found significantly positive.
Similarly, green SL showed a positive relationship with green performance. This satisfies
the first condition of the mediation effect. Moreover, the direct relationship of green man-
agement initiatives and green performance was also positive and in the same direction
(i.e. positive). Therefore, the complementary mediation effect of green SL was established
(Nitzl et al. 2016). It indicated that some portion of the effect of green management initia-
tives on green performance was mediated by the green SL; however, green management
initiatives still explain a portion of green performance which is independent of green SL.
The effect of green management initiatives on green SL was also found in this research.
The current study highlights the fact that HR practices promote the leadership behaviour
that is required to achieve corresponding HR goals. In their study, Singh et al. (2020)
found that HR practices and green transformational leadership stimulate the environmen-
tal performance of small and medium-sized enterprises (SMEs). This study, however, has
established that green management initiatives become the basis on which managers
choose their style of leadership. That leadership style (i.e. green SL) enables them to
achieve the green objectives of the firm.
Leaders persuade their subordinates and direct their focus toward the fulfilment of
organisational objectives (Mansoor et al. 2021). The mediation effect of green SL suggests
that input from leaders creates an alignment of organisational goals with employees’ goals.
Li et al. (2020) found an association between green transformational leadership style and
employees’ creativity. Recently, Luu (2020a) highlighted a similar relationship between
green SL and organisational innovation. Therefore, it strengthens the view that green lead-
ership promotes positive organisational outcomes. Similarly, this research has established
that green SL positively influences organisational green performance by making their
employees more engaged in green tasks.
Theoretical implications
The findings of the current study provide important contributions to the green manage-
ment literature. First, this research has integrated two important systems of an organisa-
tion (HR system and organisational strategy) and explored its impact on green
performance, which was neglected previously (Luu 2020b). In this way, the current study
has responded to the call for more empirical research on the synergetic effect of HR prac-
tices and firm strategy on firm performance (Do et al. 2018; Oke et al. 2012). Moreover,
Renwick et al. (2013) stressed the need for the integration of green HR practices with
organisational policies as this alignment produces better outcomes for the organisation.
This study also endorses the perspective of strategic human resource management, which
requires the integration of HR policies with the firm’s strategic initiatives (Jiang et al.
2013). In this manner, the current investigation enriches the management literature by
establishing that the combined impact of green HR policies and green strategies produces
a better outcome for the organisation. It highlights the important role of green manage-
ment initiatives in the implementation of the organisational green agenda.
Second, while different researchers have focused on exploring the interaction effect of
leadership and HR practices (e.g. Karam et al. 2017; Neves et al. 2018), this study has iden-
tified the role of leadership in implementing HR practices. Initially, leaders themselves
indulge in green behaviour; then they act as a catalyst and shape the behaviour of employ-
ees accordingly. Third, the intervening effect of green SL contributes to the leadership lit-
erature by identifying green management initiatives as contextual precursors of green SL.
It implies that a leader’s behaviour is strongly dependent on the organisation’s policies
along with its HR initiatives.
In addition, this research used social information processing theory (Salancik and Pfef-
fer 1978) to postulate a link between green management initiatives and green SL. It was
proposed that people make sense of their organisational environment which shapes their
behaviour and attitudes. This study reveals that green SL can be developed if the green
agenda becomes one of the organisation’s priorities. Green HR practices coupled with
green strategy is a reflection of organisational concerns toward environmental care. There-
fore, managers would exhibit green SL and transform their workers into green workers.
Resultantly, the organisation would be able to satisfy the needs of environmental protec-
tion which have been raised by various stakeholders. Different scholars (e.g. Luu 2020b;
Zientara and Zamojska 2018) have previously applied social information processing theory
in green management literature. However, this research maintains that the development of
green SL relies heavily on the existence of green strategies and green HR policies.
The theory of the resource-based view was also applied in this study. It was argued that
the firms achieve competitive advantage through those resources which are rare, valuable
and difficult to imitate by their rivals. Green management initiatives promote green SL
within firms, and this synergy may lead toward competitive advantage by making it a valu-
able strategic resource. It becomes difficult for competing organisations to create this kind
of synergy, which is strongly embedded in the culture and strategies of the firm. Thus, the
strategic direction along with green HR policies would enable the organisation to achieve
goals of environmental care through green SL.
Managerial implications
The findings of this study have several implications for large manufacturing organisations
in general and the cement industry in particular. Top management must understand that
green performance can be enhanced through indirect supportive mechanisms. Managers
must devise environment-friendly policies, and they must reflect these in their own
actions. Moreover, the organisation should not only be concerned with financial perfor-
mance; rather, there is also an emerging need to address stakeholders’ pressure regarding
environmental care. This pressure can be handled through the establishment of a green
strategy with a dedicated focus on green performance. In this manner, firms with green
strategies can also better serve the needs of environmentally conscious customers.
The strategic focus of green performance will be effective if there is an alignment of
departmental strategies with organisational strategy. One of the key departments which
can play its role is the HR department. Therefore, the integrated effect of green strategy
and HR strategy is essential for promoting environmental performance. Many studies
have previously established a link between organisational green strategy and green perfor-
mance (Arda et al. 2019; Pham et al. 2019; Shafaei et al. 2020). However, this research has
empirically established that the synergistic impact of green management initiatives plays a
better role in the improvement of green performance.
Another important insight is related to the development of green SL. This study has
explored the possibility that green management initiatives become antecedents for the
development of green SL. Green SL serves as a foundation for the implementation of the
12 © 2021 Australian Human Resources Institute (AHRI).
Adil Mansoor et al.
green agenda because leaders affect and shape the behaviour of employees (Mallen et al.
2020). This is another reason for the initiation of green HR interventions based on the
strategic direction of an organisation. Hence, policy-makers must make sure that they have
the right strategies in place, which are also reflected in HR practices. Employees will likely
act for environmental preservation if they are guided and persuaded by their leaders.
Organisations should adopt multiple HR strategies to cultivate green SL. HR practices
such as recruiting, training, developing and rewarding must be linked with the green
agenda. Training can enhance green knowledge; the selection method must include
dimensions through which applicants’ pro-environmental behaviour can be assessed. Per-
formance management should include green activities as key performance indicators, and
participation in environmental care activities should also be in rewarding criteria. Fur-
thermore, training should be directed toward the promotion of servant leadership charac-
teristics such as emotional healing, empowering, helping and behaving ethically. Previous
studies have also found that green HR practices significantly boost green performance
(Renwick et al. 2016; Shafaei et al. 2020).
Mr. Adil Mansoor is a lecturer in the Department of Business Administration, Ghazi University,
Dera Ghazi Khan, Pakistan. He is currently pursuing his PhD in Management from Putra Business
School, University Putra Malaysia. His main research interests include human resource manage-
ment, leadership, organizational sustainability and innovation.
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