The impact of Green HRM practices on Financial Performance through the

mediating role of Green OCB; Moderation of Green Innovation between

Green OCB & Financial Performance.

This thesis is presented to Superior University, Lahore

In partial fulfillment of degree
Masters of Sciences in Accounting and Finance

By

Mutahir Khan
Sameed Asghar
Rimsha George
ACCEPTANCE CERTIFICATE

The impact of Green HRM practices on Financial Performance through the mediating
role of Green OCB; Moderation of Green Innovation between Green OCB & Financial
Performance.

A post graduate thesis submitted to Department of Accountancy as a partial fulfillment of the requirement for

award of degree in Masters of Sciences in Accounting and Finance.

Name Roll Number

Mutahir Khan Mafe-S22-012
Sameed Asghar Mafe-S22-009
Rimsha George Mafe-S22-003

Supervisor

Ali Waqas
Lecturer
Department of Accountancy
Superior University, Lahore
DECLARATION

I hereby declare that I carried out the work reported in this thesis at the department of accountancy under the

supervision of Ali Waqas.

I solemnly declare that to the best of my knowledge, no part of this project has been submitted here or elsewhere

in a previous application for award of degree. All sources of knowledge used have been duly acknowledged.

Mutahir Khan Mafe-S22-012

Sameed Asghar Mafe-S22-009
Rimsha George Mafe-S22-003
Acknowledgement

First of all, I would like to express our gratitude to ALLAH ALMIGHTY, THE ALL KNOWING for enabling
me to enhance my understanding and to complete this assessment report on “The impact of Green HRM
practices on Financial Performance through the mediating role of Green OCB; Moderation of Green
Innovation between Green OCB & Financial Performance.’’ I’m extremely gratified to the Sir. Ali Waqas
for providing us a great platform for study, enhancing our abilities to do fruitful work and always being a source
of inspiration for us. I wish and pray that this journey on the path of enlightenment would have already given so
much to me.
I thank you all with profound gratitude.

Mutahir Khan
Sameed Asghar
Rimsha George
 TABLE OF CONTENT
Abstract
1. Introduction: …………………………………………………………...(1)
1.1 History…………………………….………………………………….(2)
1.2 Start-up in Pakistan ….…………………………………………………..(3)
1.3 Developments during the Eighties…………………………………………..(4)
1.4 Increase in Tanneries…………………………………………………….(4)
1.5 Growth…………………………….………………………………….(5)

2. Branding and Merchandising: ………………………………………….(5)

2.1 Retail Distribution……………………………………………………….(7)
2.2 Wholesale Distribution……………………………………………………(7)
2.3 Manufacturing…………………………………………………………..(8)

3. Competition: …………………………………………..………………(9)
I. Service………………………………………………..……………...(9)
II. Shafi Group…………………………………………………..……….(9)
III. Women’s Fashion Show Stores…………………………………..………..(9)

Vision: ………………………………………………………………....(10)
Mission: ……………………………………………………...….……...(10)
Organizational Chart of Bata Pakistan: …………………………….………(11)
Statement of Profit and Loss: ……………………………………………..(12)

4. SWOT Analysis: ………………………………………………………(13)

4.1 Strengths………………………………………………………...……(13)
4.2 Weaknesses…………………………………………………..………..(13)
4.3 Opportunities……………………………………………………......…(13)
4.4 Threats……………………………………………………….............(14)

Chapter 2: Literature Review:

Green HRM………………………………………………………………(15)
Green OCB………………………………………………………….……(16)
Green Innovation……………………………………………………...…...(16)
Firm Performance………………………………………………………….(17)
Green Human Resource Management and Firm Performance…………………..……(18)
Green Human Resource Management and Green Organization Citizenship Behavior……..(19)
 Green Organization Citizenship Behavior and Firm Performance……………….……(19)
Green Innovation, Green Organization Citizenship Behavior, Firm Performance………...(20)
Conceptual Framework: ……………………………..…………….……(21)

Chapter 3: Methodology and Data Collection: ………...………………...

Sample Design……………………………………………………….……(22)
Questionnaire……………………………………………………..………(22)
Target Population………………………………………………………….(22)
Quantitative Method………………………………………………..………(23)

Chapter 4: Descriptive and Reliability Analysis: ………………….……….

Descriptive Analysis………………………………………………………..(24)
Demographics…………………………………………………………….(24)
Interpretation……………………………………………………………..(24)

Table No 1: Gender………………….……………………………………(24)
Table No 2: Age…………………….……………………………………(24)
Table No 3: Qualification…………….…………………………………….(25)
Table No 4: Martial Status………….………………………………………(25)
Table No 5: Stay in Organization……….……………………………………(26)

Reliability Analysis: ……………………………………………………….

Table 1: Scale Green HRM………………………………………………….(26)
Table 2: Scale Green OCB…………………………………………………..(26)
Table 3: Scale Green Innovation………………………………………...……(27)
Table 4: Scale Firm Performance……………………………………………..(27)
Descriptive:.….………………………………………………………….(27)
Communalities: …………………………………………………………..(27)
KMO Bartlett’s Test: ……………………………………...………………(28)

Correlation and Regression Analysis……………………………………….

Correlation Analysis…………………………………………………….....(28)
Regression Analysis……………………………………………………….(29)
Table No 1: Model Summary:………………………………………………….(29)
Table No 2: ANOVA: ………………………………………………………….(29)
Table No 3: Coefficients: ……………………………………………...……….(30)
Mediation Matrix……………...………………………………………………..(31)
Moderation Matrix: ………………………………………………………………(32)

Conclusion……………………………………………………………...…....…(33)
Limitation and Recommendation……………..………………….………….…(33)
National Tax Number: 0709877-4
Company Registration Number: 0000500
Sales Tax Number (STRN): 0303640000564

1. INTRODUCTION:

In August 2003, Doug Hearns, CEO Bata Pakistan, was considering the efforts necessary to realign

Bata Pakistan’s manufacturing outsourcing, distribution, and brand strategy in the light of increased local

competition and Chinese imports. Doug had joined Bata as CEO in January 2002, with 19 years of experience

in the company including 1½ years as Head of Marketing in Bangladesh, and another 2½ years in the same

capacity in Pakistan. Traditionally, Bata had catered to the lower middle- and middle-class market. In 2001,

however, Bata decided that instead of competing at the lower end of the Pakistani market, it would

concentrate on the higher end, through new fashion brands such as Marie Claire and licensing global brands

such as Slazenger and Hush Puppies. This decision entailed increasing manufacturing outsourcing from 17

per cent to 70 per cent, building up a premium retail network including mega stores, and most importantly

building up a new cadre of management capable of leading Bata into the twenty-first century.

Doug realized that in the rapidly changing Pakistan shoe industry, key players such as Servis, Shafi and

Firhaj and the Chinese exporters would all be realigning their business strategies to compete effectively with

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each other, and possible new entrants. Thus, it seemed critical that Bata should take some bold decisions to

prepare for the strategic landscape ahead.

1.1 History

Bata is one of the well reputed footwear companies not only in Pakistan but also throughout many

countries in the world. It’s a multinational manufacturing and retail based Canadian owned company. Bata

is a family-owned business founded by

“Thomas Bata” on 24th august 1894 in today’s

Czech Republic. This leading company has the

retail presence over 70 countries and has

production facility about 18 different countries

and has enormous amount of retail shops all over the worlds and growing continuously. It’s headquartering

situated at Lausanne, Switzerland. The company has market presence in all major continents and the major

product line is footwear, clothing and accessories.

“Our Success is built on our legacy of values and belief”

“Thomas G. Bata”

Bata Ltd. is a privately owned global shoe manufacturer and retailer headquartered in Ontario, Canada. The

company is led by a third generation of the Bata family. With operations in 68 countries, Bata is organized

into four business units. Bata Canada, based in Toronto, serves the Canadian market with 250 stores. Based in

Paris, Bata Europe serves the European market with 500 stores. With supervision located in Singapore, Bata

International boasts 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally, Bata Latin

America, operating out of Mexico City, sells footwear throughout Latin America. All told, Bata owns more

than 4,700 retail stores and 46 production facilities. Total employment for the company exceeds 50,000.

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1.2 Start-up in Pakistan

In Pakistan, Bata began with the establishment of a plant in Batapur (about 20 km from the provincial

capital of Lahore) in 1942, especially to produce leather boots for the army. In the early 1940s, there were

hardly any tanneries capable of producing consistent, quality finished leather. Therefore, the company

established tanning operations within the Batapur factory. Doug Hearns, Bata’s MD, commented that setting

up tanneries was consistent with Bata’s policy that, “wherever we went globally, we were fully integrated to

feed our distribution”.

Bata developed as a vertically integrated firm, with company owned leather tannery, shoe

manufacturing, and an extensive retail network. The other vertically integrated firm was Service Industries1

which was established in 1954 and owned a tannery and shoe factories in Muridke and Gujrat. During the

1960s and 1970s, Service followed the practice of opening a store wherever Bata opened a store. The retail

outlets were mostly in rented properties, and both firms benefited from an inefficient property market, which

allowed low rents to continue for decades despite double digit inflation. Both brands were extensively

advertised particularly during Eid festivals and school openings, and became known for providing reliable

quality shoes at affordable prices. By 2001, Bata had invested Rs 430 million2 in its factories and about Rs

150 million in stores and fittings (see Exhibit 2 for an organization chart and Exhibit 3 for financial

statements).

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1.3 Developments During the Eighties

A major expansion in the leather and footwear industries took place during the 1980s. Remittances

from migrant workers in the Middle East, together with the Afghan war, resulted in a 6 per cent annual GNP

growth and increased consumer spending. The increased market size was accompanied by a threefold

increase in shoe retailers and this catalyzed a threefold growth in the number of footwear manufacturers. The

number of tanneries tripled during the decade from 180 to 509, making quality finished leather widely

available to footwear manufacturers. The increase in tanneries was a direct consequence of increased leather

exports, caused by the widespread closure of tanneries in Europe resulting from ecological concerns. Changes

in the global leather industry provided local tanners access to inexpensive used equipment and technology

from their international customers. Furthermore, both tanners and footwear manufacturers gained from

government deregulation which decreased tariffs on imported equipment and raw material and gave increased

access to capital. Incentives for the manufacture of leather garments and footwear were provided, including

duty rebates and duty-free import of machinery, and decreased rebate on finished leather exports. Many

tanners set up leather garment and footwear stitching units, and by the end of the decade 60 per cent of the

tanneries had integrated forward into stitching units. By the late 1980s, the leather industry had developed to

become Pakistan’s second largest export earner after textiles.

1.4 Increase in Tanneries

The increase in tanneries also increased the concern about the negative environmental impact of

effluents from tannery operations. In response to concerns from the Government of Pakistan as well as from

Bata headquarters in Canada, Bata acquired a tannery in Sheikhupura on the outskirts of Lahore. In 1998,

tanning operations were transferred to the fully owned subsidiary, International Tannery & Industries (ITI).

ITI had a capacity to produce 700,000 square feet of finished leather per month; it was responsible for

producing finished leather for the parent company as well as for exports (see Exhibit 4 for financial

statements of ITI). In 2000, after having accumulated a total loss of Rs 104 million, Bata divested its holdings

in ITI. According to Doug, “ITI was an exercise in over enthusiasm. A huge infrastructure was built without

any buyers. We were operating below capacity.”

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In 1951, Bata had established a plant to make rubber tires and bicycle tubes as part of the Batapur factory. In

1987, Bata decided to discontinue production of tires and tubes, due to continued losses over the last several

years.

A manager familiar with the decision commented:

“Bata was facing price competition, and decided to sell the plant to an ex-employee
in the hope that costs would be contained. Unfortunately, quality suffered, and in
order to protect its brand name, Bata decided to quit the tire and tube business. It
was a big loss to the company and quite unjustified.”

1.5 Growth

The Bata shoe business began to experience steady growth, so that by 1912 it was employing 600 full-

time workers plus another few hundred who worked out of their homes in neighboring villages. Tomas Bata

now began to exhibit another side to his personality,

the social idealist. Because there was a shortage of

housing in Zlin for his new workers, he constructed

new homes, which he rented at cost. He also offered

inexpensive meals in factory cafeterias and free

medical care. He even built a new hospital to care for

his workers. However, as soon as they began to earn higher incomes, area merchants raised prices. In answer,

Tomas Bata opened his own less-expensive company stores to ensure that his employees were able to enjoy

the fruits of their success. He also took steps to identify management talent among the ranks of his workers

and instituted a training program that was ahead of its time.

2. Branding and Merchandising

In 2002, Bata’s product line included about 1,500 SKUs. Bata marketed these SKUs under

international brands licensed from the parent company. Some of these international brands which had been

introduced in the early 1980s and even earlier included North Star, a unisex brand of joggers aimed at

teenagers; Power, a brand designed for specialized sports footwear such as football, tennis and cricket;

Bubble Gummers, which were fun shoes for children; Marie Claire, fashion shoes for women; Sandal, trendy

5 |Page
low-cost plastic shoes worn as casual footwear in the summer; and Safari casual footwear. Over the years,

new lines were introduced within each of the main brands, such as Glow shoes, Light shoes, Compass, and

Music shoes within Bubble Gummers. Bata also increased advertising of its Hawaii slippers, Emozioni line of

women’s fashion footwear, and Toughies, a school shoe brand.

The merchandising department acted as a liaison between the sales, factory production, purchasing and

advertising departments. The merchandising manager acted both as a merchandiser and brand manager. In

2002, the department had three brand managers, one each for Hush Puppies, sports shoes (Slazenger, Power),

and women’s shoes (Marie Claire), and also four merchandising officers, one each for other shoe categories

such as men’s formal shoes, children’s shoes, PVC, and Sandak. Another position being considered was for

non-footwear items such as clothing.

• Strategic Options
Bata realized that he needed to evaluate the major options in each of the major functional areas. These

included:

1. Manufacturing - Outsource product lines locally and internationally (given Bata’s plan to

increase outsourcing from the present 17 per cent to 70 per cent of sales).

2. Distribution - Mix of franchised versus company owned stores, and also mix of retail versus

wholesale channels.

3. Brands - Mix of economy and premium brands, and also of men’s, women’s and children’s

shoes.

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2.1 Retail Distribution

Bata marketed shoes through three main distribution channels; retail, wholesale, and government and

export. In 2002, the retail department operated through 256 company owned stores, 25 K-scheme stores and

91 agencies. A company owned store was owned, managed and run by company employees. Typically, shoes

sold through retail outlets carried a 42 per cent gross margin. Expenses averaged 28 per cent of sales and

included fixed salaries, commissions, utilities and rent. Store managers received about 20 per cent of their pay

as fixed salary and 80 per cent in commission.

An agency was similar to a company owned store because it carried only

Bata brands. Bata provided shoe racks and some other furnishings. In addition, Bata owned the inventory in

the store. However, the agency (franchisee) was responsible for all operating expenses. Bata paid the agency

a 14-16 per cent commission on each pair of shoes sold.

2.2 Wholesale Distribution

The wholesale department operated through two main channels; registered dealers who bought shoes

from company owned depots, and distributors. In 2002, Bata had 23 company owned depots serving 550

registered dealers, in addition to 7 distributors who sold to a large number of unregistered dealers. These

dealers (registered or unregistered) were independently owned shoe shops, which stocked several brands in

addition to the Bata brands. Depots were staffed with company employees, and were located in outlying areas

that could not be conveniently serviced by company owned stores and agencies. These depots served

registered dealers in their geographical area.

Shoes sold through the wholesale department usually consisted of lower priced shoes. Thus in 2001,

the price of an average shoe sold through wholesale was Rs 85 compared to Rs 190 through retail. Stock

turns, defined as annual sales divided by average inventory level (in retail stores or in the company owned

depots), was much higher in wholesale than in retail. Bata’s balance sheet showed a sharp increase in trade

debt, which consisted mainly of credit to distributors. Trade debt increased from Rs 114 million in 1998 to Rs

330 million in 1999, and Rs 674 million in 2001. In 2002, Bata adjusted its earnings from wholesale sales, to

7 |Page
reflect the return of unsold inventory. As a result, wholesale sales in 2002 were Rs 455 million compared to

Rs 821 million in the previous year.

2.3 Manufacturing

Footwear manufactured by Bata could be grouped into six broad categories, based primarily on the

nature of manufacturing technology and material used. The production technologies varied from processes

like ‘lasted stuck-on sole’ which involved labor intensive stitching, to the complex, capital intensive ‘direct

injection’ process for producing joggers.

In 2002, from 1,500 SKUs about two-thirds (representing 17 per cent of total pairs sold) were procured from

outside vendors, known as Associated Business Units (ABU). The decision regarding whether a particular

product line would be outsourced was based on several considerations. SKU’s involving specialized

equipment, higher volumes, and stable demand were sourced in-house, with a 12month planning cycle,

compared to a 6-month planning cycle for outside orders. Plans were made for two seasons; winter which

lasted from October to March and summer which was from April to September.

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3. Competition

I. Servis:

The Servis group established a footwear manufacturing plant and tannery in the 1950s to produce

leather shoes for school children, leather boots for the army, and to export canvas shoes to Europe. In 2002,

Servis was estimated to have sales of Rs 3.2 billion which

included domestic sales of 1.75 billion, exports of Rs 840

million, and tire and tube sales of Rs 650 million. The company

sold 5 million pairs a year through wholesalers and through a

chain of 236 company owned outlets and 24 franchised retail

outlets. Servis outsourced manufacturing to 46 suppliers, and owned its own tannery and plants in Muridke

and Gujrat. The workforce had steadily increased from 4,875 to 5,642 during 1998-2002.

II. Shafi Group:

The Shafi Group began as a trading house in hides and skins in 1940, and by 2002 it had eight

manufacturing units including four tanneries, two leather garment units, one footwear unit, and units

specializing in leather/ textile chemicals and in

Information Technology. The group produced

about 50 million square feet of finished leather

annually, placing it amongst the largest leather

manufacturers in the country. Annual sales were over Rs 4.5 billion. Companies in the group had

arrangements for technical collaboration with leading Spanish and German firms, and had developed a

reputation for high quality in various specialized leather products. Units in the group procured most of the

skins and hides locally, and had established long-term arrangements with suppliers.

III. Women’s Fashion Shoe Stores:

A large number of stores such as Ehsan Chappal House, Stylo, Metro, Milli, and Catwalk specialized

in women’s fashion shoes. Leading stores generally introduced about a thousand new designs each for the

9 |Page
summer and winter seasons. Since each design was available in multiple colours and sizes, a large store

carried about 20,000 pairs in stock. Sometimes a new design

was introduced with as little as one pair to test the market; the

design was closely monitored for two weeks. Replenishment

cycle time could be as short as 7 to 10 days. Popular designs

were rapidly imitated by second and third tier stores, and thus

leading stores had an average product life cycle of only 30 to 45 days. According to an industry insider, over

half of the new designs introduced failed, and had to be sold at considerably discounted prices. Clothing

designs and cloth patterns and colors, as well as magazines and foreign movies affected fashion shoe design

trends. Thus, a wide-toe shoe would go with a wide- bottom trouser, or a floral theme in print fabrics would

popularize shoes with floral designs.

Vision:

To grow as a dynamic, innovative and market driven domestic manufacturer and distributor, with footwear as

our core business, while maintaining a commitment to the country, culture and environment in which we

operate.

Mission:

To be successful as the most dynamic, flexible and market responsive organization, with footwear as its core

business.

10 | P a g e
 Organizational Chart of Bata Pakistan

Mr. Robert
Longo
Chairman

Mr. Rafel Mr. Kamal Mr. Muhammad

Mr. Imran Toh Guan Kiat Mr. Ijaz Ch Mr. Amir Amin
Dasca Monno Maqbool
Malik Non Executive Non Executivr Non Executive
Executive Independent Independent
Chief Executive Director Director Director Director Director
Director

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12 | P a g e
4. SWOT Analysis

According to the company, following are the strengths, weaknesses, opportunities and threats of

Bata Pakistan:

4.1 Strengths:

• One of Bata’s biggest strengths are their school shoes, there is no household with school going

children in Pakistan where you wouldn’t find Bata’s school shoes.

• Bata’s athlete footwear brand (Power) and their formal footwear brands (Weinbrenner and

Ambassador) are their strengths as well.

• The interviewee also said that their biggest strength is their wide network of retail outlets; he added

that there is no other brand in Pakistan in the footwear industry with a network that huge.

• Bata is a complete family store catering all ages and genders all under one roof providing the

customers with value and satisfaction through good quality footwear at comparatively low prices.

4.2 Weaknesses:

• Offer limited variety in stylish and trendy footwear due to less focus on present trends.

• Their advertisements and promotional activities are comparatively less than other brands.

• Bata used to have sales promotions every other month but now, they have sales only on special

occasions.

4.3 Opportunities:

• The taste and demand for footwear has recently changed, nowadays customers deny purchasing old-

designed and simple shoes and are now diverting towards buying fashionable and newly designed

shoes. Hence, they have the opportunity to be innovative when it comes to their footwear. The

interviewee added that, if you go to Stylo, you will find a lot of variety.

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 (Bridal and trendy footwear), he said that Bata hasn’t focused much on fashionable footwear, their

focus has always been about catering to the whole family’s needs but now they are thinking about it.

4.4 Threats:

• Increasing cost of production is one of the threats bata is facing. Bata uses a method which minimizes

their cost but the prices of the raw materials are increasing as the dollar rate is increasing, power

shortages in Pakistan and the rate of tax on imported products is increasing as well so they led to Bata

Pakistan Ltd. to increase the prices of their footwear, which is affecting their business.

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 CHAPTER 2
LITERATURE REVIEW

GREEN HRM:

The GHRM is the concept which was introduced recently. (Lee 2009) explained how green management

initially began with corporate plan in the 1990s but only actually took off in the 2000s. Although green

management and greener efforts have been around for more than 20 years, there aren't many thorough studies

in the field of GHRM. The link between organizational results and HR practices like financial performance,

flexibility and productivity has been noted in literature surveys e.g. (Mendelson and Pillai 1999, Freeman and

Kleiner 2000, Collins and Clark 2003) yet (Laursen and Foss 2003) shown the connecting results between the

performance of innovation and environment management strategies which has not received sufficient attention

(Renwick, Redman et al. 2008).

(Jabbour, de Sousa Jabbour et al. 2013) state that 75 Brazilian enterprises were examined to determine

how human resources and environmental management related to one another. The results showed a favorable

association between the two. (Renwick, Redman et al. 2013) worked widely and point out the literature gap

between the area of HRM and EM and also mention about the composition on (AMO) ability-motivation-

opportunity theory. He also reveals the function of GHRM methodology practices in handling people. The

study also showed that because most firms do not implement the broader GHRM standards, some

organizations are limited in their ability to improve EM. The HR department has been credited for fostering

an eco-conscious culture within the firm by coordinating practices and policies with sustainability objectives.

GHRM practices cover a lot more ground than just carrying out EM activities. (Cherian and Jacob 2012,

Mandip 2012). (Renwick, Redman et al. 2008) and (Dias, Müller et al. 2010) explained about the GHRM

which includes the combination of environmental control in company with HR procedure of employment

selection, training and development, (Srivastava, Banu et al. 2021).

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GREEN OCB:

Many leadership theorists have maintained that altruism is an essential not just because it is beneficent

component of transformative leadership, but also because of its basic behavior (Bass and Steidlmeier 1999).

Perhaps, OCB is being studied for many years and appear to improve the efficacy and performance of companies,

units and groups (Podsakoff, MacKenzie et al. 2000). In IT field, OCB actual studies shows the restoring

innovation, better sharing, change, customer satisfaction and software quality (Yen, Ko et al. 2008). Scholars

have presented OCB’s dimensions and models for many years. Still the nature of the required supportive

employees and more struggle has changed.

The change can be explained with different type of skills required in complex problems, workplace,

changing customer needs and new dynamic technologies (Van Dyne and LePine 1998, Dekas, Bauer et al. 2013).

Which shows that need of modern organization are out of date and no longer satisfy according to OCB designs

introduced in the literature. (Rosso, Dekas et al. 2010). The change is because of newly required different skills

in the complex problems, workplace. To present an OCB structure that meets these needs (Dekas, Bauer et al.

2013) manage a multi methodology study to find a dimension of OCB applicable to (KW) knowledge workers in

modern firms. KW work depends on the head first and later on the hands (Rosso, Dekas et al. 2010). Recently,

the KW which includes most administrative positions, executive and governmental (Dekas, Bauer et al. 2013)

defined OCB as "individual behaviors of workers are helpful but it’s not required by employers”. OCB for

Knowledge Workers (OCB-KW) have five categories which were presented as: assistance, citizenship, worker

resilience, voice and social participation (Dekas, Bauer et al. 2013).

GREEN INNOVATION:

Green innovation, provides a physical benefit through novel procedures creations while taking care of

environment, which idea is comparison to other innovation categories as “environmental responsibility”. Green

innovation also improves the management of natural resources and minimizes waste in addition to the areas

already discussed. The "greening of industries" term normally refers to new technology, business practices, and

environmental protection initiatives; for example, to create a new improved result i.e., a product, process, or

organization that uses environmentally safe practices or concepts. Helping a business or separate make, or provide

16 | P a g e
innovation is the creative concept of innovation. Using two types of topics, green innovation can be study: green

process innovation and green product innovation.

Only when prepared for all of its facets can a corporation utilize all of its green innovation and reap all of

its rewards. Self-evaluation is based on a prior of their readiness during the implementation phase and green

innovation before, businesses can quickly establish critical resources or supplement a business case and gather

vital capabilities. Innovation in green products refers to putting new concepts into practice so that new green

products can be created, manufactured, and marketed with much higher environmental performance than similar

or traditional items. Environmentally friendly items frequently gain from efficiency improvements and design

changes that make recycling easier. The total green product innovation includes safer raw resources, fewer

hazardous materials, and better product longevity or recycle ability. To enhance the product’s features and to

reduce the environment harm which is causes by the product, the green innovation of the product is focusing on

it.

FIRM PERFORMANCE:

Performance by FIRM for successful businesses is necessary component in developing countries. In

determining phase, many economists compare countries to an engine with their political development, economic

and social. If every company wants to survive then they should run under performance-based circumstances in a

butcher business environment in recent studies on strategic management, they have gained prominence and is

frequently used as a dependent variable in company performance. It is possible to consider how effectively a

company operates while assessing the efficacy of its strategic initiatives. In fact, it’s generally held in academic

literature, definition and measurement hardly agreed upon.

According to (Szilagyi, Schwartz et al. 1981), Efficiency and effectiveness inside an organization emerge

from the actions the organization takes. This is known as organizational performance. The aforementioned essay

explores how organizational performance may help to explain the discrepancy between intended outcomes and

actual outcomes. (Chan, He et al. 2012). For the purpose of this study, organizational performance mention to an

organization's entire performance, which includes both non-financial and financial performance. Manufacturers

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must make difficult decisions if they want to thrive in the fierce competitive and quickly changing climate of

today. Surviving gets more difficult during an economic downturn.

Green Human Resource Management and Firm Performance:

The term "green HRM" within firms frequently explain how different HRM policies and practices donate

to the larger corporate environmental agenda. It means take each employee advantage in the company to support

continuous operations in order to boost employee responsiveness and commitments on the numerous

sustainability-related concerns. One of the most recent ideas, green HRM offers businesses a number of benefits.

Recent years have been a tremendous increase in scholarly research on green HRM e.g. (Umrani, Channa et al.

2020); (Ahmed, Seadawy et al. 2019). Due to many advantages, these practices are extremely important for

businesses. In particular, it has notable impact on both direct and indirect businesses performance. Through its

employees, it possesses indirect power. Because green HRM plays the most significant impact in employee

performance. Generally speaking, it has the capacity to enhance performance, which raises company

performance.

As mentioned previously that green HRM effect the performance (Naz, Li et al. 2020, Singh, Del Giudice et al.

2020). Hence, the importance of green HRM in the food business cannot be fail to notice. The right application

of green HRM is known as Green HRM, and it aims to improve the various food supply companies’ performance

in Bahrain. Performance Lockdown for Green Supply Chain Companies M. R. H. (AlZgool, Ahmed et al. 2021)

is the 81 most notable part between the companies. For better performance, better exercise of these practices is

required. As (Ghouri, Mani et al. 2020) has mentioned, with help of green HRM, business performance can be

improve. Thus, it leads to the following hypothesis.

H1: There is a positive and significant relationship between green HRM and firm performance

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Green Human Resource Management and Green Organization Citizenship Behavior:

Through regular employee training on sustainability, Green Practices for Business has shown us how to

establish a competitive edge through environmental sustainability. Additionally, GHRM procedures assist people

in becoming aware of sustainability benefits. Additionally, it gives firms leverage in terms of better performance,

cost savings, and staff dedication to environmentally sustainable outcomes. Researchers have discovered that

there is positive impact on organizational citizenship behavior support from environmental-related activities

toward the (OCBE) and other aspects of the job such as employee satisfaction, recognition, and retention.

Organizational Citizenship Behavior Toward Environment (OCBE) refers employee voluntary environmental

behaviors that are frequently not required and rewarded by employers.

Employee commitment can be increased by assisting organization employees and managers in fostering a green

environment. Employees' OCBE is positively impacted by efforts to enhance the workplace environment,

attitudes toward environmental preservation, and self-environmental security concerns.

H2: There is a positive and significant relationship link between Green HRM and Green OCB.

Green Organization Citizenship Behavior and Firm Performance:

Similarly to OCB, the behavior of selected employees that has a harmful effect on their organizations and

stakeholders caused many organizational difficulties to be experience (Shin, Park et al. 2017). Previous studies

have demonstrated that deviant conduct, or CWB, has a detrimental impact on firms, leading to an increase in

employee income and absences as well as a loss in productivity and job satisfaction. (Bennett and Robinson 2000,

Dalal 2005). As a result, many researchers in organizational studies have examined the situational factors, such

as emotional pressures, organizational injustice, and mutual dispute, that might lead to CWB among employees

in the workplace. (Fox, Russo et al. 2001, Shin, Kim et al. 2017).

By CSR beliefs many organizational scholars have focused how positive employee behaviors can be

influenced, which ignores the negative repercussions of CWB, in line with the growing focus on sustainability in

organizational studies. A recent research by (Meister, Hur et al. 2018) found that OCB is not only effected but

also CWB can obstruct amongst employees by CSR perceptions. (Shin, Park et al. 2017) also mentioned this

19 | P a g e
view that such harmful behaviors may be impeded by CSR attitudes. The implications of inverting this

relationship to investigate the effects of CWB on CSR performance are then raised by this.

H3: There is a positive and significant relationship between Green OCB and Firm performance.

Green Innovation, Green Organization Citizenship Behavior, Firm Performance:

Top managers understand the value of environmental preservation and their obligation to influence

strategic planning with relation to environmental management on behalf of their organization. Better innovation

and performance should result from management paying close attention to and recognizing environmental

issues. Additionally, the management team's support for staff participation in environmental management

projects and its own dedication to green practices will have a significant impact on the company's future

environmental practices direction. There are similar circumstances among employees. Employees at an

organization frequently start environmental activities. If employees do not support a company's policies,

environmental goals will be difficult to achieve. Therefore, businesses must educate staff members about

environmental challenges, enlist the right personnel, and strengthen their commitment to environmentally

responsible practices.

According to the studies referenced, management and employee pressure may lead firms to embrace green

practices. A company’s performance can estimate with the use of both non-financial and financial metrics. In

terms of financial performance companies can cancel their environmental costs through boosting resource

productivity by green innovation. Additionally, by embracing environmental practices, businesses can create new

markets and expand their market share. Improved non-financial performance can hold the form of more clients,

more customers, and an improved reputation and brand logo as a long-term operational goal. According to Chen,

businesses will take benefit from "first-mover advantage," who lead the way in green innovation which includes

higher product prices, a better reputation among customers, access to new markets, and competitive benefits.

H4: Moderation of Green innovation b/w Green OCB and FP.

20 | P a g e
 CONCEPTUAL FRAMEWORK

Green Innovation

Firm
Green HRM Green OCB
Performance

Hypothesis Development:

H1: There is a positive and significant relationship between Green HRM and FP.
H2: There is a positive and significant relationship between Green HRM and Green OCB.
H3: There is a positive and significant relationship between Green OCB and FP.
H4: Moderation of Green Innovation between Green OCB and FP.

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 CHAPTER 3
METHODOLOGY AND DATA COLLECTION

Sample Design:

A structured Questionnaire is used to collect data based on the objectives Since survey methodology

more suitable when the count of potential participants is higher so, a web base survey approach was used to

collect data when potential participants are graphically scattered the method of data collection electronic mail

survey is more suitable for data collection. We choose the sample by using simple Random sampling it may

often eliminates potential problem and desired problems.

Questionnaire:

All of the scales use in this study were adopted from base papers. The Questionnaire comprise close

ended measured again a 5-point Liked scale has five options: strongly disagree, disagree, neutral, agree, and

strongly agree. The Green HRM practices questionnaires scale of 19 items has been taken from (Tang, Chen et

al. 2018), the Green OCB scale of 10 has been taken from (Chang, Chen et al. 2019), the Green Innovation

scale of 6 has been taken from (Meidute-Kavaliauskiene, Çiğdem et al. 2021) and Firm Performance scale of 7

has been taken from (Tseng 2014).

The Questionnaire is divided into two sections. Part A contains information on demographic characteristics.

Part B contains information on the primary study instruments. This section of the questionnaire asks employees

to fill out demographic information i.e., their gender and age, marital status, work experience, and qualification

type, among other things. Overall, 105 questionnaires were filled out from BATA. The level to which the

researcher interferes is kept to a bare minimum.

TARGET POPULATION:

The target population was the employees of Bata Pakistan. We have selected

100 plus employees and distributed questioners among them. Our samples contain both male and female

population.

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Statistical Technique:

The Techniques used were:

 Descriptive Analysis was conducted on all the question.

 Correlation & Regression test were Applied.

Quantitative Method:

The recent study used the quantitative method to provide numerical and statistical assumptions. It

includes a measurable representation of result. In this method it is easy to identify that how many participants

answered the questionnaire and respondents “Age group” and their gender and education information can be

easily identified in numerical result. For detailed quantitative result analysis, the correlation test, and regression,

reliability test performed in SPSS to check the relationship between Green HRM on Green OCB, mediation of

Green OCB & moderation of green innovation.

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 CHAPTER 4
DESCRIPTIVE AND RELIABILITY ANALYSIS

Descriptive Analysis:

These are results of descriptive analysis. The sample data is well computed and well analyzed. Interpretation
gives clear idea about the results.

Demographics:

Table no 1: Gender
Frequency Percentage Valid Percent Cumulative Percent

Valid Male 65 61.9 61.9 61.9

Female 40 38.1 38.1 100.0
Total 105 100.0 100.0

Interpretation:

The research data was collected from both genders. SPSS statistics show that about 65% of responses were
taken from Male Employees and 40% responses were taken from Females.

Table 2: Age

Frequency Percent Valid Percent Cumulative Percent

Valid 18-25 62 59.0 59.0 59.0
25-35 18 17.1 17.1 76.2
35-50 18 17.1 17.1 93.3
Above 50 7 6.7 6.7 100.0
Total 105 100.0 100.0

The data shows that the 62% people belong to the 18-25 age group and 18% belongs to age group of 25-35

and 18% belongs to age group of 35-50 and other 7% are above age of 50 years.

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 Table 3: Qualification

Frequency Percent Valid Percent Cumulative Percent

Valid Bachelors 49 46.7 46.7 46.7
Masters 24 22.9 22.9 69.5
PhD 6 5.7 5.7 75.2
Other 26 24.8 24.8 100.0
Total 105 100.0 100.0

The ratio is about 49% people who responded are bachelors. The Qualification of 24% people are masters,

6% people are PHD students are 26% people belong to other qualifications.

Table 4: Martial status

Frequency Percent Valid Percent Cumulative Percent

Valid Married 74 72.4 72.4 72.4
Single 28 26.7 26.7 99.0
Not filled 3 1.0 1.0 100.0
Total 105 100.0 100.0

The respondents are 74 married 28 are unmarried and 3 persons did not fill the martial status Column.

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 Reliability Statistics
Cronbach's N of
Alpha Items
.908 10

Table 5: Stay in organization

Frequency Percent Valid Percent Cumulative Percent

Valid Less than 1Year 41 39.0 39.0 39.0
1-5Years 46 43.8 43.8 82.9
6-10Years 12 11.4 11.4 94.3
Above 10Years 6 5.7 5.7 100.0
Total 105 100.0 100.0

The participants less than 1 years are 41%, people stay in organization for 1 to 5 years are 46% are the
people in organization for 6 to 10 years are 12% and above 10 years stay in organization there are 6%
people.

Reliability Analysis:

The analysis is conducted through Spss and the values of cronbah are above 0.7. This imdicates that are
results are reliable.

Table 1: SCALE GREEN HRM

Reliability Statistics
Cronbach's N of
Alpha Items
.908 10

Table 2: SCALE GREEN OCB

Reliability Statistics
Cronbach's
Alpha N of Items
.946 19

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 Table 3: SCALE GREEN INNOVATION

Reliability Statistics
Cronbach's
Alpha N of Items
.855 6

Table 4: SCALE FIRM PERFORMANCE

Reliability Statistics
Cronbach's
Alpha N of Items
.815 7

Descriptives

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation Skewness Kurtosis

Statistic Statistic Statistic Statistic Statistic Statistic Std. Statist Std.

Error ic Error
Green Hrm Practice 105 1.00 5.00 3.8650 .77821 -.204 .236 .435 .467
Green Ocb 105 1.00 5.00 3.8238 .76555 -.358 .236 .610 .467
Green Innovation 105 1.00 5.00 3.9524 .69442 -.714 .236 1.587 .467
Firm Perfomance 105 1.00 5.00 3.9442 .67225 -1.072 .236 2.854 .467
Valid N (listwise) 105

Communalities
Initial Extraction
Green Hrm Practice 1.000 .695
Green Ocb 1.000 .728
Green Innovation 1.000 .824
Firm Perfomance 1.000 .631
Extraction Method: Principal Component
Analysis.

27 | P a g e
 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling .779

Adequacy.
Bartlett's Test of Approx. Chi-Square 212.548
Sphericity df 6
Sig. .000

KMO's values greater than 0.5 indicate that data is valid for all variables and the sample is producing reliable

results. All of the variables have a KMO value > 0.5 and are significant.

CORRELATION AND REGRESSION ANALYSIS

Correlation Analysis:

The table shows the correlation stats of the analysis:

Correlations

Green
Green Hrm Practice Green Ocb Innovation Firm Performance
Green Hrm Practice Pearson Correlation 1 .638** .647** .548**
Sig. (2-tailed) .000 .000 .000
N 105 105 105 105
** **
Green Ocb Pearson Correlation .638 1 .743 .499**
Sig. (2-tailed) .000 .000 .000
N 105 105 105 105
** **
Green Innovation Pearson Correlation .647 .743 1 .671**
Sig. (2-tailed) .000 .000 .000
N 105 105 105 105
** ** **
Firm Performance Pearson Correlation .548 .499 .671 1
Sig. (2-tailed) .000 .000 .000
N 105 105 105 105
**. Correlation is significant at the 0.01 level (2-tailed).

The above table shows the sig. (2-tailed) relationship between GHRM and FP at 0.00 as this result shows P-value

is less than 0.005, so in this regard, relationship between both dependent FP and Independent GHRM variables

are positively significant. The value of (r=0.647) of Green Innovation and FP shows that these two variables are

28 | P a g e
positively correlated as well as highly significant to each other. The P-value between FP is also positively

Significant at p<.01. In this regard, both variables have a positive significant relationship with each other.

Regression Analysis:

A regression test was done to examine the relationship between the independent and dependent variable.

Regression analysis shows the direct effect of Green HRM Practices on Firm Performance, to check hypothesis

Development.

Table 1: Model summary

Model Summary
Std. Error
Adjusted R of the
Model R R Square Square Estimate
a
1 .548 .301 .294 .565
a. Predictors: (Constant), GHRMP
.
.301*100 = 30.1%

Table shows that R is cumulative correlation constant with a link between the independent and dependent

variables. Value of R is (.548) and the R square he R square value is higher than 10% at 30.1%which shows the

variation of GHRM because of FP. Furthermore, the value of the (.301) model explains 30.1% of FP Because of

Independent variable GHRMP.

Table 2: Anova:

ANOVAa

Sum of Mean
Model Squares df Square F Sig.
Regression 14.131 1 14.131 44.283 .000b
Residual 32.869 103 .319
Total 47.000 104
a. Dependent Variable: OP
b. Predictors: (Constant), GHRMP

29 | P a g e
In anova table the value of F is (44.283) which is greater than 5. It clarifies the model is universally fine and the

value of significance lesser than .05 (.000). It shows that the model is altogether highly noteable.

Table 3: Coefficients

Coefficientsa

Standardize
d
Unstandardized Coefficient
Coefficients s
Model B Std. Error Beta t Sig.
1 (Constant) 2.113 .281 7.532 .000
GHRMP .474 .071 .548 6.655 .000
a. Dependent Variable: OP

Table of coefficient indicates the model summary of the recent result that a total 30.1% (F=44.283) variation

takes place in FP due to GHRM issues. Anova is significant (p<0.05) and indicates that the research model is

significant, Moreover, table shows the impact of GHRMP has a significant positive

(p<0.05, t=7.532) relationship with FP.

30 | P a g e
Mediation Matrix:
Run MATRIX procedure:

************* PROCESS Procedure for SPSS Release 2.16.3 ******************

Written by Andrew F. Hayes, Ph.D. www.afhayes.com

**************************************************************************
Model = 4
Y = OP
X = GHRMP
M = GOCB

Sample size
105

**************************************************************************
Outcome: GOCB

Model Summary
R R-sq MSE F df1 df2 p
.6376 .4066 .3512 70.5626 1.0000 103.0000 .0000

Model
coeff se t p LLCI ULCI
constant 1.3995 .2943 4.7548 .0000 .8158 1.9833
GHRMP .6272 .0747 8.4002 .0000 .4792 .7753

In Model Summary, disclose the value of R, R-sq., F and degree of freedom (df) at applicable level and shows that
total variation of 40.66% and it shows the negative and significant link and it is highly notable due to the value of
P which is lesser than .0005

**************************************************************************
Outcome: OP

Model Summary
R R-sq MSE F df1 df2 p
.5815 .3382 .3050 26.0580 2.0000 102.0000 .0000

Model
coeff se t p LLCI ULCI
constant 1.8046 .3029 5.9576 .0000 1.2038 2.4054
GOCB .2207 .0918 2.4039 .0180 .0386 .4029
GHRMP .3352 .0903 3.7112 .0003 .1561 .5144
Model Summary shows that total variation of 33.82% in OP is explain by GOCB & GHRMP. GHRMP has the
difference of 0.3352 however the GOCB has difference of .2207 and it shows negative value and significant link
which is highly notable due to the value of P which is lesser than .0005

******************** DIRECT AND INDIRECT EFFECTS *************************

Direct effect of X on Y
Effect SE t p LLCI ULCI
.3352 .0903 3.7112 .0003 .1561 .5144

Indirect effect of X on Y
Effect Boot SE BootLLCI BootULCI
GOCB .1384 .0699 .0211 .3060
The difference of OP which is happened due to GHRMP and the Anova is significant due to the value of P which is
lesser than 0.05 (0.000). The indirect effect have negative value they are not zero so, the mediation exists.

31 | P a g e
******************** ANALYSIS NOTES AND WARNINGS *************************

Number of bootstrap samples for bias corrected bootstrap confidence intervals:

5000

Level of confidence for all confidence intervals in output:

95.00

------ END MATRIX -----

Moderation Matrix:
Run MATRIX procedure:

************* PROCESS Procedure for SPSS Release 2.16.3 ******************

Written by Andrew F. Hayes, Ph.D. www.afhayes.com

**************************************************************************
Model = 14
Y = OP
X = GHRMP
M = GOCB
V = GI

Sample size
105

**************************************************************************
Outcome: GOCB

Model Summary
R R-sq MSE F df1 df2 p
.6376 .4066 .3512 70.5626 1.0000 103.0000 .0000

Model
coeff se t p LLCI ULCI
constant 1.3995 .2943 4.7548 .0000 .8158 1.9833
GHRMP .6272 .0747 8.4002 .0000 .4792 .7753

**************************************************************************
Outcome: OP

Model Summary
R R-sq MSE F df1 df2 p
.6276 .3939 .2848 16.2502 4.0000 100.0000 .0000

Model
coeff se t p LLCI ULCI
constant -.2489 .8029 -.3100 .7572 -1.8419 1.3441
GOCB -.2007 .9214 -.2178 .8280 -2.0288 1.6274
GHRMP .3253 .0876 3.7155 .0003 .1516 .4990
GI 1.6234 .9228 1.7592 .0816 -.2075 3.4543
int_1 -.1639 .0577 -2.8429 .0054 -.2784 -.0495

Product terms key:

int_1 GOCB X GI

******************** DIRECT AND INDIRECT EFFECTS *************************

Direct effect of X on Y
Effect SE t p LLCI ULCI
.3253 .0876 3.7155 .0003 .1516 .4990

Conditional indirect effect(s) of X on Y at values of the moderator(s):

32 | P a g e
 Mediator
GI Effect Boot SE BootLLCI BootULCI
GOCB 3.0355 -.4380 .6508 -1.6562 .9326
GOCB 3.8127 -.5180 .6498 -1.7662 .8232
GOCB 4.5899 -.5979 .6510 -1.8544 .7250

Values for quantitative moderators are the mean and plus/minus one SD from mean.
Values for dichotomous moderators are the two values of the moderator.

******************** INDEX OF MODERATED MEDIATION ************************

Mediator
Index SE(Boot) BootLLCI BootULCI
GOCB -.1028 .0484 -.1705 .0146

******************** ANALYSIS NOTES AND WARNINGS *************************

Number of bootstrap samples for bias corrected bootstrap confidence intervals:

5000

Level of confidence for all confidence intervals in output:

95.00

------ END MATRIX -----

In Model Summary, disclose R value, R-sq., F and degree of freedom (df) which is applicable level.
In Model represented the result of the Moderating role of GI on the association of GHRMP. These Values
(β=-0.1639), t=-3.6878 and P<0.05) Confirmed that GOCB had significant moderating effect. These result supported
H4 of the study which was formulated as ‘GOCB moderates the relationship between GHRMP, GOCB & OP’.

CONCLUSION:

This study investigates the relation between Green HRM and also how Green HRM practices influence the
performance of a firm. In this study we examined whwter the Green HRM has positive and significant impact on
the organizational performance and also if green ocb has a positive impact on organizational performance.
Furthermore the green innovation within an organization have also moderates the impact between the green ocb
and organizational performance.

Limitations and Recommendations:

This study was conducted on Bata company and the researchers may conduct research on other sectors. Many
organizations have many ways to measure the green hrm impacts but correct measurement can only be done
through qualitative research before conducting a qualitative study. We have very short time and many limited
resources to conduct the study. This study has limitations to different dimensions of Green HRM practices. This
study can also be done in different sectors because there might be organizational and cultural differences among
the different sectors of Pakistan.

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