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Article

Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices

1
Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin, Kuala Terengganu 20400, Malaysia
2
Administration Science Department, College of Administrative and Financial Science, Gulf University, Sanad 26489, Bahrain
3
Department of Management & Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Malaysia
*
Authors to whom correspondence should be addressed.
Sustainability 2023, 15(19), 14144; https://doi.org/10.3390/su151914144
Submission received: 15 July 2023 / Revised: 16 August 2023 / Accepted: 5 September 2023 / Published: 25 September 2023

Abstract

:
This study examines how green training can give businesses a sustainable competitive edge. Environmentally conscious strategies and operations result in lower costs, improved reputation, increased customer loyalty, and increased market opportunities driven by environmentally conscious consumers. Sustainable business conduct requires green training programmes to enhance employees’ environmental awareness. This study examines the effects of green training on sustainable business advantage using the literature and empirical analysis. This study also examines how green supply chain practices mediate this association. Green supply chain practices include environmentally friendly procurement, production, transportation, and disposal methods. Green recruitment involves selecting and hiring people who understand environmental issues and are committed to sustainability. This method integrates eco-friendly staff. A total of 583 Saudi manufacturing contract workers were studied. IBM SPSS Amos was used to analyse the data from model testing. Green training improves sustainable business advantage, according to the study. The study suggests that green supply chain practices mediate this relationship. Green training improves operational efficiency, resource use, and environmental performance. Green training can be applied to green supply chain practices, resulting in measurable and sustainable results. This study examines green training, recruitment, sustainable business advantage, and green supply chain practices to improve sustainability management understanding. These insights help organisations align their strategies with environmental sustainability, giving them a competitive edge in the 21st century’s ever-changing business environment.

1. Introduction

In recent years, the urgency to address environmental challenges and promote sustainable business practices has become increasingly evident. Organisations across various industries recognise the importance of integrating environmentally friendly strategies to achieve long-term success and gain a competitive advantage. One such strategy that has gained attention is green training, which equips employees with the knowledge and skills to incorporate sustainable practices into their work routines. However, the relationship between green training and sustainable business advantage is complex, and the mediating role of the green supply chain in this relationship requires further exploration.
Green training refers to providing employees with training and development programmes focusing on environmentally sustainable practices [1,2]. By educating and empowering employees, organisations can foster a culture of sustainability, leading to improved environmental performance and enhanced operational efficiency. Green training has been linked to many positive outcomes, including reduced resource consumption, minimised waste generation, and increased employee engagement in sustainability initiatives.
Existing research provides evidence of the positive impact of green training on sustainable business advantage. For instance, a study by Rathore [3] found that organisations that invest in comprehensive green training programmes are more likely to adopt environmentally friendly practices and achieve a competitive edge through improved brand reputation and customer loyalty. Similarly, research conducted by Dao et al. [4] revealed that green training positively influences the adoption of sustainable practices in the workplace, ultimately leading to enhanced organisational performance [5].
While the direct relationship between green training and sustainable business advantage has been examined, the mediating role of the green supply chain has received limited attention. The green supply chain refers to integrating environmentally conscious practices in procurement, production, distribution, and disposal processes. By implementing green supply chain practices, organisations can reduce their carbon footprint, optimise resource utilisation, and improve environmental sustainability throughout the value chain.
Understanding the mediating role of the green supply chain is crucial as it can shed light on the mechanisms through which green training translates into a sustainable business advantage. The importance of integrating sustainability practices into the supply chain to achieve competitive advantage was shown in [6]. Their findings suggest that organisations with a strong green supply chain are better positioned to respond to evolving customer demands, reduce costs through efficient resource management, and enhance overall operational performance [7].
To address the gaps in the existing literature, this study aims to investigate the impact of green training on sustainable business advantage while considering the mediating role of the green supply chain. By examining the relationship between these variables, this research seeks to provide a comprehensive understanding of how organisations can leverage green training and supply chain practices to achieve a sustainable business advantage.
This study will employ a mixed-methods research design, combining a thorough literature review with empirical analysis. The literature review will draw on recent studies exploring the impact of green training on sustainable business advantage and the mediating role of the green supply chain. The empirical analysis will collect primary data through surveys and interviews from organisations across different sectors, which will allow for a comprehensive assessment of the relationship between green training, the green supply chain, and sustainable business advantage.
The findings of this study will contribute to the existing body of knowledge by providing valuable insights into the impact of green training on sustainable business advantage and the mediating role of the green supply chain. Furthermore, the practical implications derived from this research will assist organisations in formulating effective strategies to integrate green training programmes and implement green supply chain practices, ultimately fostering environmental sustainability while gaining a competitive edge in today’s business landscape.

2. Green Training and Development (GTD)

To survive in the competitive market, it is essential for every business to adapt to the changing environment, and it is even more crucial for each organisation to resist that change through training and development. Environmental training also prevents the deterioration of ecological management skills, knowledge, and attitudes. Training and development is a technique that places great emphasis on developing employee skills and knowledge that relate to certain practical competencies [8]. Green training and development teach employees how to operate in a manner that avoids waste, maximises the use of resources, conserves energy, and mitigates the causes of environmental deterioration; it also allows employees to solve environmental issues. The authors of [9] employed a multiple case study methodology and identified the importance of green training and development in enhancing corporate value.
Appropriate green training is necessary to engage and involve personnel in any environmental endeavour. Some nations have invested substantially in green issues training to combat waste, pollution, and climate change [10].
In the United Kingdom, for instance, 42% of firms educate and teach their personnel to encourage more environmentally conscious behaviour. The United States has also committed over USD 300 million to create greener jobs. Therefore, increasing employees’ awareness, knowledge, and abilities about green issues can improve their emotional and material commitment to accomplishing environmental objectives. However, training is not always effective. When establishing proper training programmes, businesses must consider various obstacles and challenges that could hinder their efficacy [11].
These may include inadequate assessment of training needs, poorly constructed mechanisms for retraining personnel who have lost their employment, or cynicism on the part of employees. To ensure the success of training, businesses should spend on building and expanding their environmental knowledge base. Employees can be a significant source of tacit knowledge in areas such as recognising pollution sources, devising ad hoc remedies, and managing emergencies. However, this information is rarely documented, kept, and shared effectively across enterprises. However, recent research on Chinese managers demonstrates a high correlation between environmental consciousness and individual environmental behaviour [12].
Therefore, environmental consciousness is necessary for green employee conduct and can contribute to increased responsibility and responsiveness. Numerous businesses offer environmental training to their personnel. The Land Rover Group is one example of such a business. The Land Rover Group provides its staff with job-specific environmental training. They hold periodic briefings and distribute newsletters to inform their employees about environmental issues [13].
Environmental sustainable development policy, main objectives, and environmental practice boards were posted at each location. They encourage employees to generate novel ideas that lessen environmental degradation. Training and developing personnel in an organisation emphasising skills, attitudes, and knowledge reduces a corporation’s decline during a crisis period. Green training and development educate staff on safeguarding the environment through waste reduction, energy saving, reuse and recycling, eco-design, and environmental management [14,15].
Once an employee joins a company, it is the organisation’s job to train the workforce following organisational goals to accomplish sustainable business goals. GTD, or environmental training, stands out as one of the key principles of green human resource strategies; it has attracted considerable scholarly interest. Bhutto [16] has shown empirically that GTD has a major impact on the performance of businesses.
Environmental conservation learning systematically develops employees’ environmental-related knowledge, skills, and attitudes through learning experiences. In addition, the significance of environmental training is as a means for employees to obtain advanced environmental management practices. GTD promotes the organisation’s progress towards its competitive advantage [17]. Developing a company’s workforce is the process of preparing multitalented people who are environmentally savvy, skilled, and able to contribute to the growth of the company, its suppliers, and its members. Designing green training programmes to achieve the company’s sustainable advantage is essential. All company personnel should be trained to raise their environmental awareness and understanding and inspired to adopt and engage in environmentally related activities [18].
The benefits of training in human resource management extend to three distinct levels: the individual level (employee empowerment, communication, planning and coordination, adaptability, tacit and innovative skills, etc.) [19], the organisational level (service and product quality and quantity, lower cost, increased productivity, profitability, etc.), and the societal level (or national-level economic development by training of human resources). Problems with training assure the sustained implementation of green practices, thereby enhancing the manufacturer’s competitive advantage [20].
With the present emphasis on sustainable development and eco-friendly activities, there is pressure on businesses to implement greening methods. A potential response would be to enhance the company’s and its members’ knowledge and skills to establish a green or environmentally conscious culture [21]. Developing the key supplier’s employees through green training/education, communicating frequently about related green practices, and involving the supplier in eliminating non-value-adding activities and developing green products/processes are crucial to the efficiency of sustainability [21].
The familiarity of personnel with green practices will enable more effective implementation of sustainable development in their respective enterprises, enhancing their firms’ competitive edge. Focusing on internal green training and green supplier development will strengthen the company’s green innovation and competitive advantage capabilities [22]. Thus, green or environmental training is described as an organised and systematic endeavour to design a programme for the modification and development of green-related knowledge, skills, and behaviour through imparting lessons through environmental challenges [23].
In manufacturing companies, green training focuses mostly on eco-design training, life cycle assessment (LCA) training, recycling and reuse training, and waste elimination training. In numerous studies addressing particular GHRM components, staff training and development and employee involvement and empowerment were related to substantial effects. These dimensions include practices aimed at providing employees with the knowledge necessary to adhere to green organisational policies and practices (specifically, training and development) and at creating an environment in which employees can effectively engage in green behaviours (specifically, involvement and empowerment) [24].
The selected publications found that these practices considerably impact green organisational outcomes, including sustainability, environmental commitment, environmental performance, and supply chain management activities [25]. Interestingly, articles addressing one to three GHRM dimensions include the training and development dimension. Rewards, salary, and compensation are frequently associated with major results. They collect financial and non-financial incentives to encourage green employee behaviour and reinforce long-term organisational benefits [26,27].
Consistently, the selected publications revealed that this dimension has considerable effects on organisational sustainability, environmental performance, and green supply chain management [28]. These aspects have also been associated with employee-related outcomes, such as greater green commitment and reduced turnover intentions. Even environmentally friendly selection and evaluation techniques frequently had positive results [29].
Specifically, research demonstrating a distinct influence of the “selection, recruitment, and hiring” dimension focused mostly on organisational implications, as reported by managers and employees. Studies showing a significant effect, especially associated with the performance management and assessment dimension, concentrated mostly on perceived environmental performance and staff engagement in green concerns. This study utilised 15 items on a 10-point scale to measure training methods. The seven-item ranking is based on the training literature and adopts items from [30,31].

Green Supply Chain Management

Supply chain management (SCM) has evolved into a crucial element in sustaining an organisation’s competitive edge. In this context, several businesses and scholars have sought to identify characteristics that have favourable or bad effects on SCM. Green supply chain management (GSCM) has recently been the subject of several research studies [32]. According to Jaaffar and Kaman [32], despite its growing popularity in industrialised nations, there are still several unexplored areas of green supply chain management (GSCM), especially given that greening the supply chain has been designated as a central problem of sustainable SCM. GSCM has also begun to acquire appeal in nations with a growing economy, such as China and Malaysia. Scott and Westbrook [33] and New and Payne [34] noted that SCM refers to the chain linking each aspect of the production and supply process, from raw materials to end customers, and managing the integration of all contributing enterprises’ contributions. Over the last decade, SCM has played a significant role in the performance of organisations. As a result, the green supply chain (GSC) has developed as an integral part of the environmental and supply chain strategies of a large number of businesses.
Although the phrase “environment” or “greening” is unclear in numerous industries, it signifies not only aligning corporate environmental performance with stockholders’ expectations but also establishing a vital new source of competitive advantage from a management standpoint [35]. According to Gupta [34], environmental management mitigates environmental devastation and enhances environmental performance by institutionalising diverse greening practices, beginning new initiatives, and creating technology, processes, and products. According to Green et al. [36], GSCM stands for advances in supply chain management and industrial buying in a deteriorating environment. According to Zhu, GSCM methods have four important components: internal environmental management, external environmental management, investment recovery, and eco-design.
Although corporations view environmental management as their strategy, little emphasis has been paid to assessing GSCM’s effectiveness based on the techniques applied. Existing research has concentrated on GSCM’s performance by using measuring methodologies that represent not just indigenous characteristics but also SCM’s economic or competitive benefit. Existing SCM performance measurement methodologies do not adequately capture essential aspects of SCM such as the organisation’s strategic objectives and relationships with partners [37].
Numerous studies have sought to identify and investigate GSCM in recent years. Green supply refers to the environmental implications of advancements in supply chain management and industrial buying. GSCM is defined by 49. Beamon [37] as the purchasing function that includes reduction, recycling, reuse, and material replacement. The GSC encompasses a broad range of GSCM techniques and SCM players and practices, from green buying to integrated supply chains that move from suppliers to manufacturers to consumers and back to suppliers [38].
Brown [39] proposes two principal types of green supply management processes: greening the supply process and product-based green supply. Greening the supply process refers to the environmental considerations in the firm’s supplier management operations. Additionally, product-based green supply focuses on alterations to the delivered product and strives to regulate by-products of supplied inputs. According to Pagell and Shevchenko [40], logistics and supply chain department executives should balance cost-effectiveness and innovation while preserving environmental performance. By analysing the supply chain, businesses may determine if environmental concerns can be included in industrial transformation processes [36].
Public environmental awareness, stakeholder pressure, and commercial ties substantially impact environmental concerns [41]. The greater breadth of fixing environmental challenges through this collaboration may be successful, faster, and less expensive if all firms adhere to a similar body of knowledge, organisational structure, and dependable technology [42]. GSCM is the intra- and inter-organisational management of supply chain activities to decrease or eliminate the externalities caused by forward and reverse flows [43].
GSCM is the integration of environmental practices into supply chain operations to minimise or eliminate solid waste, lower pollution, decrease energy consumption, and conserve resources from product design processes through the product’s end of life. GSCM incorporates internal and external environmental practices, including eco-design, green buying, internal environmental management, reverse logistics, collaboration with supply chain players, and investment recovery [44]. Firms may adopt GSCM willingly or involuntarily to obtain market access, gain a competitive edge, satisfy credit criteria, and enhance their company image. GSCM are the environmentally friendly practices organisations implement to improve their corporate appearance and gain access to the global market [45]. GSCM is essential for enhancing the environmental performance of businesses by fostering a green culture that results in waste reduction, energy and resource conservation, and less pollution. Companies integrate green practices into their operations to lessen the negative environmental effects of their activities and goods [46].
Some of these firms voluntarily engage in IGSCP, such as green labelling of products, auditing programmes and environmental reporting, internal environmental evaluations, and ISO 14001 certification [32,47,48] in order to gain competitive advantage, improve corporate image, increase customer satisfaction, improve management systems and gain access to the international market. Jaaffar and Kaman’s [32] study on green supply chain management practices and environmental performance determined that green supply chain management (GSCM) is important in influencing the total environmental impact of companies engaged in supply chain activities and contributes to improving sustainability performance. The research by Jaaffar and Kaman [32] investigates employee perceptions of their company’s green supply chain management methods and environmental performance.
Only law and regulation, out of the five factors of green supply chain management methods, were shown to have a substantial positive association with environmental performance. In addition, most employees believe that their company’s environmental performance will be enhanced by complying with laws and regulations rather than by proactively developing green supply management techniques.
In firms focusing on environmental efficiency in supply networks, green supply chain management is the most significant issue in operations management [24]. While the authors of [49] regard the complete supply chain as the cornerstone of an organisation’s sustainability, we see the supply chain as a unit. Beske and Seuring argue that sustainable GSCM is more applicable for accomplishing economic and performance objectives.
Beske and Seuring [50] describe GSCM as incorporating environmental considerations into SCM in organisational processes. Havana et al. [51] recognise this description while highlighting the implementation of green purchasing, green production, greener product distribution, and reverse logistics. According to Assumpção et al. [52], studies on GSCM present numerous environmentally friendly green practices and initiatives, including green manufacturing processes and operations, green product design, green material sourcing and purchasing, and the delivery of the final eco-friendly product to the customers. Vachon and Klassen [53] assert that GSCM aims to enhance environmental management through environmental collaboration or the settlement of mutual concerns that lower environmental hazards in supply chains. According to Santos and Liguori [54], the effectiveness of GSCM tactics depends on the parties participating in SC having a common awareness of the environment. Environmental aims and objectives can only lead to a sustainable company if all partners of SC work together; this cannot be accomplished if the supplier does not adhere to the green goals.
Many GSCM frameworks treat these strategies and practices as a black box due to the involvement of multiple parties and stakeholders in the supply chain (SC) process. These strategies vary between the upstream and the downstream or intra-organisational practices or between the multi-tier practices involving the focal firm, a supplier, and a third party [55].
These categories of GSCM practices are contingent on the SC structure and do not account for the peculiarities of certain practices, which may result from a lack of clarity regarding the scope of GSCM processes and necessary activities in the SC. Zhu et al. (2008b) [38] experimentally evaluated the GSCM activities in manufacturing companies. They determined that the following GSCM practices are significant: internal environmental management, green purchasing, customer interaction, eco-design, recovering investments, and reverse logistics.
Researchers have delved into various dimensions within sustainable supply chain management to comprehend the intricate dynamics of fostering environmentally conscious practices. Notably, this study aims to contribute by investigating the influence of green training on business sustainability, with a specific focus on the potential mediating role of green supply chain practices. This investigation resonates with existing research, such as exploring pricing and greening strategies within dual-channel supply chains [55] and analysing optimal pricing and greening strategies in competitive green supply chains [56,57]. These prior studies underscore the multifaceted nature of sustainable supply chain management and emphasise the importance of integrating strategies that foster environmental consciousness alongside operational excellence.

3. Sustainable Business Advantage (DV)

It is becoming increasingly difficult for organisations to balance economic and environmental performance, especially those subject to competitive, regulatory, and community pressure. Increasing pressures for environmental sustainability necessitate the formulation of new strategies by manufacturers to minimise the environmental impact of their products and services [58].
Long [59] defines sustainable business as combining social, environmental, and economic goals with organisational objectives, operations, and strategies to create a long-term advantage for stakeholders, related parties, and society. In other words, this entails developing and implementing a plan to achieve the organisation’s objectives while safeguarding the environment for the future.
Competitive advantage or sustainable business advantage refers to a company’s capacity to sustain its growth and market share and develop the ability to outperform rivals in a way that competitors cannot acquire or match, resulting in its competitive advantage [60,61]. Businesses should adopt green practices linked to green orientation goals [62]. A manufacturing company’s competitive advantage reflects its green training, supply chain, and innovation enhancements. A company with a substantial competitive advantage can differentiate itself in the market, operate at lower costs, and generate higher revenues than rivals [63].
Kumar Mishra [64] noted that eight factors define sustainable competitive advantage growth: product quality and cost, profit, corporate image, market receptivity to green regulations, research and development, managerial advancements, etc. [65,66]. Chen et al. [66] employed a set of eight criteria to assess the competitive advantage derived from environmentally friendly processes or sustainable development: (a) competitive pricing compared to rivals; (b) product or service quality; (c) the company’s research and development capabilities surpassing those of its competitors; (d) superior management capabilities compared to rivals; (e) enhanced profitability of the firm; (f) outpacing competitors in terms of company growth; (g) pioneering status and prominent position in significant fields; (h) superior corporate image compared to competitors.
Moreover, researchers have pinpointed several quantifiable factors that could ascertain the competitive advantage of a manufacturing or service firm engaged in environmentally conscious endeavours. These factors encompass an upsurge in product sales, product cost, quality, market responsiveness, enhanced corporate image, and the potential of research and development as a pivotal competitive advantage determinant [65]. Environmental sustainability necessitates modifications to business operations and the delivery of goods and services. The success of any change process, particularly environmental performance improvement, depends heavily on employees as the primary change agents [67]. In this regard, green human resource management (HRM) can be viewed as a way for businesses to exercise CSR. Green HRM is essential for successfully implementing green strategies and environmental management practices [68,69] and can positively impact the environmental sustainability of an organisation.
The literature defines green HRM as a set of specific HRM practices that enable and sustain a proactive approach to environmental management and achieve high-performance environmental sustainability-related outcomes. Due to the significance of green HRM in achieving environmental sustainability, there has been an increase in green HRM research (e.g., [67,69,70]). However, research remains largely undefined regarding green HRM antecedents and how they affect organisational outcomes [71]. Due to the significance of sustainable competitive advantage (SCA) to the long-term success of businesses, the existing literature discusses its content and its sources, as well as the various strategies that can assist businesses in achieving SCA. The literature differentiates competitive advantage in terms of market-related strategies (external) [72] and an organisation’s internal capabilities [61].
Market strategies relate directly to managerial decisions that position the company at the forefront of its industry rivals. In contrast, capacities relate to the resources that the company must marshal to compete. The authors of [72] and Caves [73] highlight the fact that a competitive advantage can be derived not only from specific resources but also from advantageous market positions. Even though studies by Porter [72] and the authors of [61] demonstrate distinct approaches for achieving competitive advantage, other authors, such as the authors of [74], conclude that these views do not have an excluding nature because the sustainability of a competitive edge depends on isolation mechanisms, which can be defined as factors that prevent competitors from neutralising a company’s higher performance and which can be omitted (or industry position).
As a contribution to the academic discourse, Araujo et al. [75] caution about inter-organisational relationships, and Teece et al. [76] assert that resources can be transformed into routines that fuel the organisation’s performance outcomes, which are comprised of dynamic capacities. Consistently, the characteristic of complementarity, both within the organisation and externally, stands out as a defining feature of sustainable competitive advantage. From a practical standpoint, this advantage must translate into outperforming competitors. According to Paladino [77], organisational performance revolves around the quality and profitability of products and services, as well as returns on investments and the reduction of operational costs. These aspects synergistically enhance the company’s overall performance relative to its rivals.
According to Neely et al. [78], performance evaluation is the process of quantifying an action, where measurement is synonymous with quantification, and the action is understood as leading to performance. For organisations to remain competitive in a new environment, financial measures alone are no longer sufficient for evaluating organisational performance [79]. In this context, the performance measure represents a way to comprehend the performance of an organisation. It discusses combining financial and non-financial indicators [80,81]. Hogan and Coote [82] offer an illustration: the impact of innovative behaviours on organisational performance exhibits a notably stronger positive correlation than that of values supporting innovation. Indicators must be consistently developed according to criteria that render them suitable for subsequent analyses [83].
Research Framework: Sustainability 15 14144 i001

4. Research Methodology

This section discusses the technique for collecting data, which includes study participants receiving a screening question, a demographic questionnaire, survey questions, study conduct, and secondary data sources (e.g., journals and books).
The secondary data sources will provide additional supporting information to the acquired primary data [84]. In addition, the quantitative questionnaire survey was chosen as the primary method of data collection for this study.

4.1. Research Instruments (Questionnaire Design)

A questionnaire is a research instrument consisting of a series of questions to gather information from respondents. Questionnaires can be administered in various ways, including via mail, phone, online, or in person. There are several advantages to using a questionnaire as a research instrument. One advantage is that it allows for collecting large amounts of data from a large number of respondents in a relatively short period. That makes it an efficient and cost-effective method for gathering data. In addition, because the questions are standardised, it is easier to analyse and compare the responses of different respondents.
However, there are also some limitations to using a questionnaire as a research instrument. A constraint lies in the potential lack of accuracy or reliability in responses, stemming from respondents potentially providing dishonest answers or misunderstanding the questions. Furthermore, the wording or sequence of questions, as well as the respondent’s interpretation, could impact the responses. To mitigate these limitations, meticulous questionnaire design is crucial to ensure clarity and comprehension. Testing the questionnaire with a small subset of respondents is advisable to confirm its effectiveness.
Several types of questions can be used in a questionnaire, including closed-ended questions, which have limited response options, and open-ended questions, which allow the respondent to provide a more detailed or personalised response. It is important to choose the appropriate type of question for the research purpose and ensure that the questions are unbiased and non-leading. In addition to the questions, it is important to consider the layout and formatting of the questionnaire. A clear and well-organised questionnaire will be easier for the respondent to complete and improve the responses’ quality.
Overall, a questionnaire can be a useful research instrument for gathering information from many respondents in a relatively short period. However, it is important to carefully design and test the questionnaire to ensure it is effective and produces reliable and accurate results.
The questionnaires listed below will be utilised to test the study methodology and hypotheses described in Section 4. The socio-demographic characteristics of the survey participants are measured in Table 1. To the researcher’s knowledge, however, no prior studies have examined this topic in the Saudi Arabian manufacturing sector. Consequently, the scales utilised in comparable studies were reviewed, improved, and implemented. These scales will be used to measure the environmental components of this investigation.

4.2. Research Design

This research is an explanation approach. To improve comprehension and debate, the quantitative method was modified to collect the data [85]. A questionnaire and a semi-structured interview constitute the data-gathering techniques. Five distinct and complementary stages are included in the research. The research’s main goals and scope were established in consultation with the supervisor, and subsequently, the research objectives, questions, and hypotheses were formulated through a comprehensive review of the relevant literature. The sample and target population, consisting of manufacturing businesses in Riyadh and Jeddah, Saudi Arabia, were then defined. The subsequent phase involves the execution and analysis of interviews and surveys. After testing hypotheses and addressing research questions, a comprehensive understanding of the existing GHRM programmes and their limitations is attained. Moreover, a model was built to aid manufacturing enterprises in the KSA, in particular, and manufacturing firms in general. Finally, the research reaches a conclusion and we discuss its shortcomings and recommendations for further analysis. Figure 1 depicts the research process flowchart.

5. Result and Discussion

5.1. Descriptive Statistics

The instrument items underwent analysis using the Statistical Package for the Social Sciences (SPSS) software to ascertain their mean, standard deviation, and variance. Furthermore, the instruments’ minimum and maximum values, mean, variance, and standard deviation were calculated and subsequently documented as part of the analysis process. Table 2 contains item-wise descriptive statistics for each variable.
The results demonstrate that the average rating for all factors about green training and development surpasses 3.5, indicating a considerable degree of concurrence or favourable outlook among participants concerning this domain. Furthermore, the upper limit of 5 indicates that certain participants have conveyed the utmost concurrence or advocacy towards the green training and development elements. The findings suggest a favourable perception and robust backing for green training and development programmes in the examined setting.
The results suggest that the mean rating for all items related to green supply chain management exceeds 3.5, suggesting a generally positive view or agreement among the participants regarding this aspect. Additionally, since the highest possible score is 5, it indicates that some participants have expressed the highest level of agreement or support for the items associated with green supply chain management. The findings suggest that the green supply chain management practices were perceived positively and received robust backing within the scope of the investigation. That suggests that corporations are significantly emphasising adopting ecologically sustainable practices and proactively integrating environmentally conscious initiatives into their supply chain management processes.
The results also suggest that the average ratings for all the items about sustainable business advantage exceed 3.5, indicating an overall favourable perception or consensus among participants concerning this concept. Furthermore, the highest possible score of 5 indicates that certain participants have conveyed the utmost degree of concurrence or approval regarding the factors related to sustainable business advantage. The findings indicate that the organisations operating within the examined context have effectively incorporated environmental and social sustainability practices into their operations, resulting in a sustainable business advantage. The robust mean scores and maximal ratings indicate a firm acknowledgement and endorsement of the favourable consequences of sustainable corporate strategies.
Finally, the findings also indicated that the average ratings for all items about green recruitment and selection surpassed 3.5, suggesting an overall favourable perception or concurrence among participants concerning this facet. Furthermore, the maximum score of 5 indicates that certain participants have demonstrated the utmost degree of agreement or advocacy towards the green recruitment and selection elements. The results of this study suggest that entities operating within the examined setting accord high priority to environmentally responsible practices when it comes to their recruitment and selection procedures. The robust mean scores and maximal ratings suggest a firm acknowledgement and endorsement of integrating green standards and sustainability deliberations in hiring and appointing personnel. This indicates that corporations proactively seek out individuals who share their ecological principles and can make valuable contributions to their sustainability efforts.

5.2. Normality Test

The skewness and kurtosis were scrutinised for each variable under investigation to evaluate the normality of the dataset. Adherence to established guidelines is crucial when interpreting these measures. According to Preacher and Hayes [86], skewness values should be within the interval of +1 to −1. In contrast, Hair [87] suggest that kurtosis values should ideally range from −7 to +7. Table 3 presents the results of the skewness and kurtosis tests, indicating that all variables under investigation demonstrate values that fall within the acceptable range.

5.3. Convergent Validity Assessment

The evaluation of the measurement model and convergent validity was conducted using construct reliability (CR), average variance extracted (AVE), and standardised factor loadings (SFL). The acceptance criteria for these metrics are set as CR > 0.7, AVE > 0.5, and SFL > 0.6 [88]. The results indicate that all constructs surpassed the predetermined criteria, as depicted in Table 4. To assess discriminant validity, the correlation coefficients of all variables were compared with the square root of the average variance extracted (AVE), following the approach proposed by Bagozzi [88]. The results confirmed the achievement of discriminant validity, which is presented in Table 4.

5.4. Measurement Model

To assess the quality of our measurement models about green recruitment and selection, green training, green supply chain, and sustainable business advantage, we employed various fit indices, including absolute appropriate indices (RMSEA: root-mean-square error of approximation, GFI: goodness-of-fit index), incremental indices (AGFI: adjusted goodness-of-fit index; NFI: normed-fit index, TLI: Tucker–Lewis index, CFI: comparative fit index), and parsimony normed-fit index (NC: normed χ2, calculated as χ2 divided by degrees of freedom) [89]. Our obtained values were found to align with the prescribed limits and criteria. The results for the measurement models are presented in Table 4 clearly indicating a satisfactory fit, as evidenced by the confirmatory factor analysis (CFA). The overall measurement model results, in which all latent constructs alongside their observed variables were loaded onto the model, are presented in Figure 2.

5.5. Structural Model

The hypothesised model (Figure 1) was evaluated using structural equation modelling (SEM) to assess its overall fit to the data. The goodness-of-fit approach was employed to estimate the data fit and structural model. Firstly, the data were examined to identify any potential outliers or abnormal variables, following the guidelines suggested by Bagozzi [88]. The results indicated that all variables had significant standard errors greater than zero, with values less than 0.068. Additionally, all standardised factor loadings (SFL) were found to be substantial, ranging from 0.72 to 0.83. These findings collectively suggest a favourable preliminary fit of our data.
Subsequently, absolute, incremental, and parsimonious fit indices were utilised to assess the overall model fit following the methodology proposed by Hu and Bentler [89]. Importantly, all the obtained findings met the predetermined criterion, as follows: RMSEA = 0.007, GFI = 0.958, AGFI = 0.950, NFI = 0.967, TLI = 0.992, CFI = 0.993, χ2(CMIN) = 380.482, χ2/DOF = 1.026, with p < 0.05. These results collectively indicate an acceptable overall fit of the proposed model.

5.6. Hypotheses Testing

Our hypothesised model (Figure 2) was assessed through the structural equation modelling (SEM) technique. The overall model depicts a sufficient amount of prediction for the green supply chain, as our predictors accounted for about 12.8% variance in the green supply. In addition, a 26.7% variance was explained in sustainable business advantage through its predictors. The proposed association of overall constructs was evaluated and is exhibited in Table 4.
The first hypothesis (H1) proposed a positive effect of green training and supply chain. Based on the results, green training and development (β = 0.157, p < 0.001) were found to significantly and positively predict the green supply chain, thereby supporting H1. The second hypothesis (H2) suggested a positive relationship between green training and selection and sustainable business advantage. The results indicated that the green supply chain and piece (β = 0.399, p < 0.001) significantly and positively impacted sustainable business advantage, thus supporting H2.
The third hypothesis (H3) postulated a positive relationship between green training and sustainable business advantage. The results indicated that green training and development (β = 0.157, p < 0.001) was significantly and positively associated with the sustainable business advantage, thereby supporting H3. The findings revealed a significant and positive impact of green recruitment and selection (β = 0.118, p < 0.001) on the green supply chain, thus supporting H4.
Lastly, H5 proposed a positive impact of the green supply chain on sustainable business advantage. The findings revealed the green supply chain’s significant positive effect (β = 0.399, p < 0.001) on sustainable business advantage, thereby supporting H5. The overall path coefficients of the model can be found in Table 5, and a visual representation of the general structural model is presented in Figure 2.

5.7. Mediation Model Assessment

Regarding the examination of the mediating role of the green supply chain in the relationship between green training, green recruitment and selection, and sustainable business advantage, the findings revealed significant direct effects of green training and development (β = 0.118, p < 0.001) and green recruitment and selection (β = 0.174, p < 0.001) on sustainable business advantage. The assessment of the indirect effect of green training and development on sustainable competitive advantage yielded a significant and positive result (β = 0.063, p < 0.002). Similarly, evaluating the indirect impact of green recruitment and selection on sustainable competitive advantage also showed a positive and significant outcome (β = 0.125, p < 0.009). These statistical findings indicate that the green supply chain partially mediates green training, green recruitment and selection, and the outcome variable, namely sustainable business advantage. The comprehensive mediation results are presented in Table 6.

6. Discussion

Direct Association between Constructs

In today’s rapidly changing business landscape, organisations increasingly recognise the importance of adopting environmentally sustainable practices to remain competitive and address pressing environmental challenges. This study explores the relationships between green training, recruitment and selection, supply chain, and sustainable business advantage. With growing awareness of the need for sustainable practices, organisations are investing in initiatives such as green training and development programmes and green recruitment and selection practices to integrate environmental considerations into their operations. Understanding the associations between these variables can provide valuable insights into organisations’ strategies to achieve a sustainable business advantage. This discussion presents the findings of these variables and their associations, contributing to the growing knowledge of integrating sustainability principles into business practices.
Hypothesis 1 suggests that green training and development positively predicts sustainable business advantage. The findings of this study confirm Hypothesis 1, demonstrating a significant positive relationship between green training and development and the attainment of a sustainable business advantage. The statement implies that companies that emphasise educational initiatives centred on ecological sustainability can gain a competitive advantage by assimilating sustainable approaches into their comprehensive business tactics.
Hypothesis 2 posited that there exists a positive correlation between green training and development and the implementation of green supply chain practices. The results of the present investigation provide empirical evidence in favour of Hypothesis 2, which posits a significant and affirmative correlation between green training and development and the execution of a green supply chain. This suggests that organisations that invest in training their employees on green practices and environmental sustainability are more likely to adopt and integrate environmentally friendly practices throughout their supply chain operations.
Hypothesis 3 states that the green supply chain predicts a sustainable business advantage. The findings strongly support Hypothesis 3, revealing a significant positive relationship between implementing a green supply chain and attaining a sustainable business advantage. This underscores the significance of incorporating ecologically sustainable methodologies into the supply chain to achieve a competitive advantage and realise enduring commercial prosperity.
In summary, this study’s findings offer empirical support for the favourable correlations among green training, green recruitment and selection, green supply chain, and sustainable business advantage. As mentioned above, the results emphasise allocating resources towards eco-friendly training initiatives and incorporating environmentally aware recruitment tactics to cultivate a green supply chain and attain a sustainable competitive edge. Organisations proactively prioritising these aspects are expected to experience advantages such as better environmental performance, improved reputation, and heightened competitiveness in the current market, which values ecological consciousness.
The mediating role of green supply chain management between green training and development and sustainable business advantage.
This study examines the potential mediating effect of green supply chain management on the association between green training and development and sustainable business advantage.
The results suggest that green supply chain management is a mediator in the correlation between green training and development and the attainment of a sustainable business advantage [90]. This protracted discourse will explore the ramifications and importance of the partial mediating effect.
The purpose of green training and development programmes is to augment the comprehension of employees regarding sustainability principles, environmental challenges, and optimal methodologies. These programmes aim to provide employees with the knowledge and competencies to make meaningful contributions to promoting sustainable business practices [91]. The literature indicates that companies that allocate resources towards environmentally focused training and development initiatives are inclined to implement sustainable measures and enhance their ecological performance holistically.
The research findings emphasise the significance of green supply chain management as a mediator to some extent. Green supply chain management entails incorporating sustainability principles across the entire supply chain, encompassing the procurement of raw materials to distributing products or services [92]. The implementation of this approach guarantees the integration of environmental factors within the supply chain procedures and decision making. The findings indicate a partial mediating effect, which implies that organisations that have successfully implemented green training and development programmes are inclined to give greater importance to sustainability in their supply chain management practices.
Several factors can be attributed to the mediating role of green supply chain management. To begin with, it can be argued that green training and development initiatives positively impact employees’’ comprehension and consciousness of sustainability matters [93]. This, in turn, can influence their decision making and conduct within the supply chain. There is a positive correlation between employees who have undergone green training and their inclination to seek suppliers and partners who adhere to sustainable practices and exhibit a reduced environmental footprint [94,95].
Furthermore, implementing green training and development initiatives cultivates a sustainable ethos among the organisation’s members [96]. There is a positive correlation between employees who have received training on environmentally sustainable practices and their propensity to participate in sustainability initiatives and promote sustainable practices across the supply chain [94]. The aforementioned cultural transformation has a significant impact on the supply chain management tactics of the organisation, thereby facilitating the assimilation of ecological concerns across all tiers.
Moreover, the partial mediating function of green supply chain management suggests that the sustainable business advantage resulting from green training and development is not exclusively contingent on the training per se. The efficacy of green training and development initiatives is enhanced when integrated with adopting sustainable supply chain strategies [97,98]. Companies that successfully incorporate sustainability into their supply chain management procedures are more inclined to attain a sustainable business edge by diminishing ecological footprints, elevating operational efficiencies, and enhancing stakeholder perception.
The study’s results indicate that green supply chain management serves as a mediator to some extent in the correlation between green training and development and sustainable business advantage. This leads to the conclusion that implementing green supply chain management practices can contribute to achieving sustainable business advantage. By incorporating sustainability principles across the supply chain, entities can utilise the expertise and competencies acquired via environmentally conscious training initiatives to attain sustainable business operations. The significance of harmonising training initiatives with supply chain management strategies to fully leverage the potential advantages of green training and development programmes is underscored by the mediating impact of green supply chain management. Organisations that effectively incorporate green training, development, and supply chain management are inclined to attain a competitive edge by augmenting their environmental performance, stakeholder engagement, and overall sustainability outcomes.
The presence of a positive correlation between green training and the green supply chain implies that it would be beneficial for organisations to allocate resources towards improving employees’ understanding and abilities in environmentally sustainable practices. This investment has the potential to facilitate the implementation of sustainable supply chain practices, thereby enhancing operational efficiency and generating cost reductions.
By prioritising candidates who exhibit robust environmental awareness and a proven dedication to sustainability, organisations can successfully imbue their workforce with individuals capable of advocating for eco-friendly initiatives. The alignment of these factors can yield positive effects on implementing green supply chain practices and attaining a sustainable business advantage.
The study’s findings emphasise the positive impact of green training and development on sustainable business advantage. This implies that organisations should consider green training as both an investment in environmental responsibility and a strategic manoeuvre to attain enduring benefits. By providing employees with the requisite knowledge and skills, organisations can facilitate enhancements in operational efficiency, reductions in resource consumption, and improvements in environmental performance.
This study examines the correlation between green supply chain practices and the attainment of a sustainable competitive advantage in business operations. It suggests that organisations have the potential to enhance their competitive edge by utilising their dedication to environmentally sustainable supply chain practices. By strategically optimising procurement, production, transportation, and disposal processes ecologically sustainably, companies can bolster their brand reputation, attract a customer base that prioritises environmental consciousness, and uncover novel market prospects.

7. Conclusions

To sum up, the present research examined the relation among diverse factors about sustainable practices in organisational settings. The study was centred on examining the effects of green training and development, green recruitment and selection, and the green supply chain on attaining a sustainable business advantage. The study’s results unveiled various significant associations and intermediary impacts that elucidate the intricate mechanisms within sustainable enterprises.
The study’s results provided evidence in favour of the proposed hypothesis that the implementation of green training and development initiatives is significantly associated with the attainment of a sustainable business advantage. The statement posits that companies that place emphasis on and allocate resources towards training and development programmes with an environmental focus are inclined to attain a competitive edge in terms of sustainability.
The study has provided evidence that supports the hypothesis that implementing green recruitment and selection practices has a positive correlation with attaining a sustainable business advantage. This suggests that companies that integrate eco-friendly measures into their hiring and staffing procedures are more likely to achieve enduring competitive benefits.
Furthermore, the empirical evidence suggests that the provision of green training positively impacts the development and implementation of environmentally sustainable practices within the supply chain. This indicates that companies that offer eco-friendly training initiatives to their staff are more inclined to cultivate the acceptance and execution of sustainable practices throughout their supply network.
The findings of the study indicate that there is a positive correlation between green recruitment and selection practices and the development of a green supply chain’’. This implies that companies that emphasise recruiting personnel with environmentally conscious values and skills are more inclined to establish an eco-friendly supply chain. Additionally, the study’s results indicated that implementing a green supply chain was a significant predictor of achieving a sustainable business advantage. The aforementioned highlights the importance of incorporating sustainable measures in the supply chain to gain a competitive advantage and ensure sustained prosperity.
Furthermore, the research revealed that implementing a green supply chain partially mediates the correlation between green training and development and the attainment of a sustainable business advantage. The statement posits that the advantageous effects of green training and development on sustainable business are, to some extent, enabled by implementing eco-friendly procedures in the supply chain.
The study’s results suggest that implementing a green supply chain played a role in mediating the connection between green recruitment and selection practices and the attainment of a sustainable business advantage. The statement mentioned above suggests that the favourable impact of environmentally conscious recruitment and selection processes on attaining a sustainable business advantage is, to some extent, facilitated by implementing sustainable practices throughout the supply chain.
In general, this research study offers significant perspectives on the interdependence of diverse variables related to sustainability within organisational contexts. The results emphasise the significance of allocating resources towards eco-friendly training and development, integrating environmentally aware procedures in the recruitment and selection procedures, and establishing sustainable practices throughout the supply chain. Through this approach, entities can attain not only a durable competitive edge but also make a positive impact on ecological conservation and societal accountability. The above sections discuss overall theoretical and practical implications, led by the future research agenda.

Author Contributions

Conceptualization, B.B., M.M., G.M.A.N., M.A. and H.B.M.; methodology, B.B. and G.M.A.N.; software, B.B., H.B.M.; validation, B.B., G.M.A.N. and H.B.M.; formal analysis, B.B.; investigation, B.B., G.M.A.N. and A.A.; resources, B.B., G.M.A.N., H.B.M. and H.B.M.; data curation, B.B.; writing—original draft preparation, B.B.; writing—review and editing, B.B., M.M., G.M.A.N., M.A., H.B.M., A.A. and Z.A.; visualization, B.B., Z.A.; supervision, H.B.M.; project administration, A.A.; funding acquisition, A.A. All authors have read and agreed to the published version of the manuscript.

Funding

This research was funded by Gulf University Bahrain.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Informed consent was obtained from all subjects involved in this study.

Data Availability Statement

Not applicable.

Acknowledgments

The authors would like to express their heartfelt gratitude to the College of Administrative and Financial Science, Gulf University, Sanad, Bahrain, for the ultimate support.

Conflicts of Interest

The authors have declared no conflict of interest.

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Figure 1. Research methodology flow diagram.
Figure 1. Research methodology flow diagram.
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Figure 2. Measurement model. Note: RMSEA = root-mean-square error of approximation; GFI = goodness-of-fit index, AGFI = adjusted goodness-of-fit index; NFI = normed-fit index, TLI = Tucker–Lewis index, CFI = comparative fit index; = parsimony normed-fit index; X2 (i.e., X2/degree of freedom).
Figure 2. Measurement model. Note: RMSEA = root-mean-square error of approximation; GFI = goodness-of-fit index, AGFI = adjusted goodness-of-fit index; NFI = normed-fit index, TLI = Tucker–Lewis index, CFI = comparative fit index; = parsimony normed-fit index; X2 (i.e., X2/degree of freedom).
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Table 1. Instruction: Please tick as appropriate.
Table 1. Instruction: Please tick as appropriate.
S/NSocio-Demographic CharacteristicsCategories
1What is your gender?[] Male
[] Female
2What is your age?[] 20–29 years
[] 30–39 years
[] 40–49 years
[] 50 years & above
3What is your highest educational qualification?[] O-level & below
[] Bachelors’ degree
[] Masters’ degree
[] Others, Please Specify …………………………. …………………………
4How long have you been working with your company?[] 0–4 years
[] 5–9 years
[] 10–14 years
[] 15–19 years
[] 20 years & above
5How would you classify your work position in your organisation?[] Senior Staff
[] Management Staff
[] Junior Staff
[] Contract Staff
Table 2. Descriptive statistics.
Table 2. Descriptive statistics.
VariablesItems NumbersMinimumMaximumMeanStd. Deviation
Green Training and DevelopmentGTD1153.741.148
GTD2153.681.088
GTD3153.621.145
GTD4153.641.123
GTD5153.711.119
GTD6154.061.082
GTD7153.611.219
GTD8153.671.111
GTD9153.741.137
GTD10153.861.072
Green Supply Chain ManagementGSC1153.871.101
GSC2153.551.144
GSC3153.930.976
GSC4154.180.995
GSC5154.040.999
GSC6154.101.059
Sustainable Business AdvantageSBA1154.221.027
SBA2153.941.047
SBA3153.860.969
SBA4153.311.105
SBA5153.431.079
Table 3. Normality statistics.
Table 3. Normality statistics.
Variables SkewnessKurtosis
Green Training and Development0.1180.136
Green Recruitment0.036−0.261
Green Supply Chain Management−0.2680.232
Sustainable Business Advantage−0.023−0.109
Table 4. Discriminant validity statistics.
Table 4. Discriminant validity statistics.
CRAVEMSVMaxR(H)1234
1. Green Training0.950.630.0390.9450.795
2. Green Recruitment and Selection0.940.660.1040.940.060.814
3. Green Supply Chain0.90.590.2260.8960.176 ***0.322 ***0.767
4. Sustainable Business Advantage0.890.620.2260.8910.199 ***0.310 ***0.476 ***0.788
Note: *** = p < 0.001, CR = composite reliability, AVE = average variance extracted, MSV = maximum shared variance, MaxR(H)= maximal reliability.
Table 5. Path coefficient of the proposed research model.
Table 5. Path coefficient of the proposed research model.
Outcome Variables PredictorsEstimateS.E.C.R.pDecision
Green Supply Chain<---Green Training0.1570.043.64***Supported
Sustainable Business Advantage<---Green Supply Chain0.3990.058.31***Supported
Sustainable Business Advantage<---Green Training0.1180.042.88***Supported
Note: *** = p < 0.001, estimate = standardised regression coefficients, S.E. = standardised error, C.R. = critical ratio.
Table 6. Mediation Assessment Result.
Table 6. Mediation Assessment Result.
Mediation EffectDirect Effect
X→Y
Indirect
Effect
Result
Green Training and Development → Green Supply Chain → Sustainable Business Advantage0.157 (0.021 *)0.063 (0.020 *)Partial Mediation
* = p < 0.05 (significant), X = (dependent variable), Y = (dependent variable).
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MDPI and ACS Style

Barakat, B.; Milhem, M.; Naji, G.M.A.; Alzoraiki, M.; Muda, H.B.; Ateeq, A.; Abro, Z. Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices. Sustainability 2023, 15, 14144. https://doi.org/10.3390/su151914144

AMA Style

Barakat B, Milhem M, Naji GMA, Alzoraiki M, Muda HB, Ateeq A, Abro Z. Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices. Sustainability. 2023; 15(19):14144. https://doi.org/10.3390/su151914144

Chicago/Turabian Style

Barakat, Bashar, Marwan Milhem, Gehad Mohammed Ahmed Naji, Mohammed Alzoraiki, Habsah Binti Muda, Ali Ateeq, and Zahida Abro. 2023. "Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices" Sustainability 15, no. 19: 14144. https://doi.org/10.3390/su151914144

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