Eco-Performance of SMEs in Pakistan: Nexus of Eco-Friendly Human Resource Management Practices and Eco-Friendly Business Strategies

Abstract

The main objective of this research is to investigate the effect of Eco-friendly human resource management (HRM) practices on eco-performance (EP) of manufacturing small and medium enterprises (SMEs) in Pakistan. Additionally, it has been investigated how eco-friendly business strategies (EFBS) as a mediator affect the relationship between eco-friendly HRM practices and EP. Data was collected form chief executive officers (CEOs) and mangers of 137 manufacturing SMEs in Pakistan. These manufacturing SMEs include: leather goods, plastic products, wooden furniture, auto parts and  PVC pipes. For the purpose of gathering data, convenience sampling was utilized. Data analysis techniques such as linear regression and structural equation modelling were used. Results show that eco-friendly HRM practices have a considerable, favorable influence on eco-friendly business strategies (EFBS). Furthermore, there is a considerable positive association between EFBS and EP. The findings of this study show that EFBS mediates the association between eco-friendly HRM practices and EP. Additionally, it is discovered that stakeholder engagement (SE) as moderator strengthens the direct effect of eco-friendly HRM practices on EFBS. The study presents valuable and practical implications to  top management, managers in practice and policymakers for ensuring the commitment of human resources towards adoption and implementation of eco-friendly business strategies to achieve eco-performance.

 Keywords: Eco-friendly Human Resource Management practices, Eco-performance, Eco-friendly business strategies, Stakeholder Engagement, Manufacturing SMEs