Green HRM, Innovation Capability, and Sustainable Performance in Traditional Food-Processing MSMEs
DOI:
https://doi.org/10.61255/jeemba.v4i6.2150Keywords:
Green HRM, Green Innovation Capability, Sustainable Business Performance, Food-Processing MSMEsAbstract
Purpose – This study examines whether owner-led Green Human Resource Management (Green HRM) is associated with perceived comparative Sustainable Business Performance through Green Innovation Capability in traditional food-processing MSMEs in Ponorogo, Indonesia.
Design/methodology/approach – A cross-sectional key-informant survey produced 301 eligible key-informant responses under a one-response-per-firm protocol; firm-level uniqueness could not be independently verified due to the absence of business identifiers in the exported dataset. PLS-SEM was estimated using SmartPLS 4 (Ringle et al., 2024). A disjoint two-stage higher-order specification represents Green HRM through four first-order dimensions and Sustainable Business Performance through economic, environmental, and social dimensions. Nonparametric bootstrapping used 3,000 resamples.
Finding/Results – Green HRM was positively associated with Green Innovation Capability (β = 0.599), Green Innovation Capability was positively associated with Sustainable Business Performance (β = 0.347), and the direct Green HRM–Sustainable Business Performance association remained positive (β = 0.484). The indirect association was 0.208, which supported complementary partial statistical mediation. The model explained 35.8% of Green Innovation Capability and 55.6% of Sustainable Business Performance.
Originality/Value – The study refines prior Green HRM research by examining informal owner-led workforce practices, distinguishing a repeatable capability from realized green innovation output, and evaluating multidimensional perceived sustainable performance in resource-constrained traditional food-processing MSMEs.
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