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Article

Green Human Resources and Innovative Performance in Small- and Medium-Sized Tourism Enterprises: A Mediation Model Using PLS-SEM Data Analysis

by
Ibrahim A. Elshaer
1,2,*,
Alaa M. S. Azazz
3,4,* and
Sameh Fayyad
2
1
Department of Management, College of Business Administration, King Faisal University, Al-Ahsaa 380, Saudi Arabia
2
Hotel Studies Department, Faculty of Tourism and Hotels, Suez Canal University, Ismailia 41522, Egypt
3
Department of Tourism and Hospitality, Arts College, King Faisal University, Al-Ahsaa 380, Saudi Arabia
4
Tourism Studies Department, Faculty of Tourism and Hotels, Suez Canal University, Ismailia 41522, Egypt
*
Authors to whom correspondence should be addressed.
Mathematics 2023, 11(3), 711; https://doi.org/10.3390/math11030711
Submission received: 5 January 2023 / Revised: 22 January 2023 / Accepted: 28 January 2023 / Published: 31 January 2023
(This article belongs to the Special Issue Mathematical and Statistical Modeling of Socio-Economic Behavior)
Browse Figures
Versions Notes

Abstract

:
Small- and medium-sized enterprises (SMEs), like large corporations, confront new issues related to business sustainability, which necessitates playing a part in environmental protection and enhancing environment-based human resources management strategies in order to remain in business. Green human resources management practices (GHRMPs) have been found to positively impact innovative performance. However, the mechanisms by which GHRMPs influence innovation are not well understood. This study aimed to examine the mediating role of individual green values and job satisfaction in the relationship between GHRMPs and innovative performance. Using a sample of 605 small- and medium-sized (SMEs) hotels and travel agents, structural equation modeling (PLS-SEM) was conducted using SmartPLS program v4 to analyze the obtained data. The study found that GHRMPs were positively related to both individual green values and job satisfaction, and in turn, individual green values and job satisfaction were positively related to innovative performance. The results of this study suggest that individual green values and job satisfaction play a significant mediating role in the relationship between GHRMPs and innovative performance. Practical and theoretical implications were elaborated on and discussed.

1. Introduction

A large number of businesses in the tourism and hospitality industries are small- to medium-sized enterprises (SMEs) [1,2]. Generally, SMEs in developing economies contribute up to 40% of the gross domestic product [3] and generate 80% of jobs [4]. These figures increase even higher when informal SMEs are included. At the same time, these SMEs around the world add 60–70% of global pollution [3]. SMEs play a vital role in the economy of Egypt. They contribute significantly to the country’s GDP, create jobs, and promote economic growth [5]. Furth more, SMEs help to diversify the Egyptian economy, reducing the country’s dependence on a few large industries and are known for their flexibility and ability to adapt to changing market conditions, which is especially important in a country such as Egypt that is undergoing economic and political change [5]. In a highly competitive market, these enterprises need superior services constantly and efficiently for success [6,7]. The demand for tourism and hospitality services is increasing and becoming more selective in terms of quality [8]. Additionally, hospitality businesses are feeling pressure to implement green policies to meet the increasing expectations of environmentally conscious customers [9,10]. As a result, the hotel sector must constantly update its service offerings and enhance and reinvent its everyday operations and procedures [11]. Innovation generates value through forming unique products, services, and processes [12], helping hotels predict advancing consumer requirements and understand their desires and preferences. Thus, innovation performance is essential, and hotels need employees to be innovative to improve quality and satisfy guests’ needs [13,14]. More specifically, Tang et al. [2] indicated that innovative service performance defines the competitive advantage of small- and medium-sized enterprises in the hospitality industry. Empirical research demonstrated that innovation improves organizations’ growth and survival and, on the other hand, is a highly complicated and risky process [15]. Therefore, previous research showed that innovative performance should rely on changes in organizational features and innovative activities and strategies [15,16].
Using the ability-motivation-opportunity (AMO) theory as a framework, green human resource management practices (GHRMPs) can help organizations attract, train, motivate, and retain talented employees by using strategies such as recruitment and selection, training and development, performance-based rewards, and employee empowerment [17,18]. GHRMPs refer to managing human resources in an environmentally responsible and sustainable manner [19]. Thus, GHRMPs are critical for corporations to develop an environmentally friendly workforce, satisfy social responsibility, and accordingly build a green image and achieve an edge over competitors [20]. These practices can improve firm performance by promoting innovation in processes, products, and services.
According to Al-Ghazali and Afsar [21], Edwards’ supply-value-fit (SVF) [22] theory postulates that if an organization supplies employees with green values through GHRMPs and these values align with the employee’s personal green values, the employee may be more likely to engage in green behaviors and display innovative behaviors. Yet, individual values, e.g., individual green values, stayed a neglecting variable; nevertheless, they may assist in explaining employees’ behaviors and attitudes [21].
Previous research has shown that certain organizational practices, such as GHRMPs, can increase job satisfaction, especially when they align with an employee’s values [23]. In turn, job satisfaction resulting from the GHRMPs is predicted to significantly influence innovation performance [24]. Still, most of the studies mainly revolve around the impact of GHRM on environmental performance, rarely considering other effects on employees [25]. There needs to be more practical evidence, for example, concerning the impact of GHRMPs on job satisfaction, namely how much an employee appreciates the job [26].
Consequently, this study aims to address these gaps by using the AMO theory and the SVF theory to examine the relationship between GHRMPs and innovative performance in SMEs, taking into account the mediating effects of individual green values and job satisfaction. Data were analyzed using structural equation modeling with the Smart-PLS method.
In various ways, this research will be useful. First, according to Yong et al. [27], no GHRM research was conducted globally in the SME context from 2007 to 2019. GHRM’s previous practical research has always concentrated on large firms or factories; little is known about SMEs [28], specifically in developing countries [29]. Furthermore, Amrutha and Geetha [30] and Pham et al. [31] found that there has been relatively little examination of the relationship between GHRMPs and employees’ green behavior in the hospitality industry compared to the manufacturing management field. Thus, our study strives to address this research gap. Second, our study will address satisfaction and individual green values as mediators between GHRMPs and innovative performance, thus expanding the green management literature with variables neglected by previous studies.

2. Theoretical Background and Hypotheses Evolution

2.1. Theoretical Background of the Study

The Ability-Motivation-Opportunity (AMO) theory is one of the most frequently utilized conceptualizations of the influence of human resource management practices (HRMPs) on corporate performance in empirical investigations [32]. According to AMO theory, HRMPs that strengthen the corporation’s human capital through more outstanding human capabilities result in performance outcomes such as higher productivity, decreased waste, higher quality, and profit [33]. Cheema and Javed [34] supported the use of AMO theory in studying GHRM, reporting that this theory could be employed to help decide management’s concerns in GHRM. Similarly, Anwar et al. [35] used AMO theory to illustrate that GHRMPs can improve OCB among a corporation’s employees, enhancing a corporation’s innovative environmental performance. On the other hand, Islam et al. [36] indicated that the supply-value-fit (SVF) theory is more linked to the concept of individual green value (IGV). SVF theory emphasizes similarities in underlying characteristics between employees and their workplace environment [37]. Thus, employee–environment compatibility is an essential factor that determines individuals’ distinctive workplace behaviors [36]. As a result, congruence between employees’ personal values and environmental values promotes favorable workplace behaviors [37]. Deegan et al. [38] demonstrated that, in the context of the social sciences, it is always preferable to get profound insights through more than one theory to gain a more comprehensive grasp of the practice. Therefore, our study tries to construct an integrated theoretical framework for explaining GHRMPs by small- and medium-sized hotels and travel agencies by integrating two mainstream theories, i.e., AMO theory and SVF theory, which were employed in the green management literature to build our study proposed model.

2.2. Hypotheses Evolution

2.2.1. GHRMPs and Innovative Performance

GHRMPs are crucial in motivating employees to respond to the businesses’ green aims [39,40]. These practices involve implementing HR strategies to achieve environmental sustainability objectives and foster employee development, commitment, and engagement with these goals [41]. Additionally, GHRMPs increase staff competencies, dedication, knowledge sharing, and perception, which may improve green behaviors, including staff environmental performance [42]. In summary, GHRM aims to achieve a balance between economic, social, and environmental sustainability and can provide long-term benefits to a company [43]. In the context of SMEs, employees’ positive job attitudes are more influenced by trust, approval, and rewards from GHR leaders than in larger enterprises [29,44].
The dimensions of GRHM diversified in previous research. Perron et al. [45] and Renwick et al. [46] suggested that GHRMPs incorporate a company’s environmental sustainability goals into HR functions, such as recruitment and selection, training and development, performance management and evaluation, and rewards and recognition [18]. These practices can be divided into three categories according to the AMO theory: (1) developing green skills (recruitment, selection, training, and development), (2) motivating green employees (performance management/appraisal, compensation and reward techniques), and (3) providing green opportunities (employee involvement and supportive culture) [47,48]. Green recruitment and selection are important in identifying candidates with green values, which can be further reinforced through green training and involvement. Green training can provide support to employees by not only teaching them the knowledge and skills to implement green activities but also by instilling green values and incentives for such actions [49]. Furthermore, according to Saeed et al. [50] it can create a green atmosphere that promotes employee involvement in green activities through recognition and rewards for their contributions to environmental achievements.
Innovative businesses have additional opportunities to survive in the competitive international market. Therefore, current businesses pursue a vision incorporating innovation to secure survival in the workplace and obtain success in an evolving environment [51]. Innovative performance is defined as the “contribution of product and process innovation to a firm’s economic performance” [15]. Job performance is made up of four dimensions: task performance, contextual performance, learning performance, and innovation performance. Innovation performance, which is the contribution of product and process innovation to a company’s economic performance, is a crucial part of an employee’s job performance [52]. Indicators of a company’s innovative performance include research and development, patents, and the creation of new goods and services [53,54]. HR practices have been found to significantly and positively impact employees’ innovative performance and, in turn, product/service innovation [55,56]. Similarly, GHRMPs can provide employees with opportunities to use their knowledge and skills to engage in green activities and initiatives and develop innovative solutions for resource efficiency improvement and waste reduction [57,58]. Thus, successful innovative performance probably, especially in environmental work, is mainly based on GHRMPs. Consequently, we can hypothesize the following:
Hypothesis 1 (H1).
GHRMPs have a positive effect on Innovative Performance.

2.2.2. GHRMPs and Individual Green Values

According to the supplies–values fit (SVF) theory, if individual values are congruent with those provided by the firm, this will positively influence employee job attitudes and behavior [22]. Thus, employee behavior is the interplay between the individual and the work environment [59]. GHRMPs and an organization’s sustainable environment reflect green organizational values (Dumont et al. 2017a [60]). In line with this framework, GHRMPs can cultivate green values among employees [39]. Through recruitment, selection, and training, GHRM strives to share information about the corporation’s green focus and promote individual green values [46]. Accordingly, we argue that GHRM’s policies and principles, when communicated effectively to an employee, will promote the employee’s values and ideas about the organization’s green objectives. Thus, there will be a congruence between the values of the individual and the organization intuitively. Therefore, we developed the following hypotheses:
Hypothesis 2 (H2).
GHRMPs have a positive effect on Individual Green Values.

2.2.3. GHRMPs and Job Satisfaction

Generally, few attempts have been made to correlate job satisfaction with HRM practice [61]. According to research, certain HR practices, such as team-based work, increased discretion and autonomy in the workplace, and various employee engagement and reward systems, can motivate and satisfy employees, leading to improved labor productivity [62,63]. In a similar vein, studies have found that employees tend to feel more identification with GHRMPs when they perceive these practices as beneficial for themselves, the company, the environment, and society [64,65]. Thus, GHRMPs yield other results beyond eco-benefits and contribute to accomplishing green goals [23], such as job satisfaction. As noted above, the GHRMPs primarily aim to generate a green organizational climate through the involvement of employees and by rewarding them for their green efforts. Therefore, Ahmad and Umrani [66] argue that eco-friendly organizational policies induce positive adjustment behaviors in some workers, such as job satisfaction. Some studies have also found that corporations’ ethical and green responsible activities are linked to employees’ positive attitudes at work [67] and, more particularly, job satisfaction [68]. Grounding on these arguments, we can hence propose the following hypothesis:
Hypothesis 3 (H3).
GHRMPs have a positive effect on Job Satisfaction.

2.2.4. Individual Green Values and Innovative Performance

According to the Value-Belief-Norm (VBN) theory and the supplies–values fit (SVF) theory, employees’ values can influence their work behavior (Stern et al., 1999 [69]; Dumont et al., 2017a [60]). Personal values, as guiding principles, can influence individuals’ creativity and inventive behavior [70]. Similarly, research has found that personal green values can significantly influence eco-friendly behavior [71,72,73]. Along the same lines, it is expected that employees will be more likely to display innovative green attitudes and behaviors when their environmental values align with the organization’s green values [74]. Employees’ green values are also thought to be positive indicators of increased job satisfaction, commitment, and engagement, which can lead to innovative behavior and performance [75,76]. As a result, we can introduce the below hypothesis.
Hypothesis 4 (H4).
Individual Green Values have a positive effect on Innovative Performance.

2.2.5. Job Satisfaction (JS) and Innovative Performance

Job satisfaction is an individual’s overall attitude about their job. The higher the job satisfaction, the more likely they will have a positive attitude toward their job [52]. As a result, job satisfaction is expected to positively, significantly, and directly impact innovation performance [77]. This is because satisfied employees are likely to be highly motivated and dedicated to their work and, therefore, more open to new technology and innovative processes and more likely to come up with new ideas that can drive innovation [24]. Based on the previous arguments, this study suggests the fifth hypothesis:
Hypothesis 5 (H5).
Job Satisfaction has a positive effect on Innovative Performance.
Based on previous literature and the arguments given above that illustrate the connections between, GHRMPs, individual green values, and innovative performance on the one hand, and, between GHRMPs, job satisfaction, and innovative performance on the other hand, the following two hypotheses are proposed, as shown in Figure 1:
Hypothesis 6 (H6).
Individual Green Values mediate the relationship between GHRMPs and Innovative Performance.
Hypothesis 7 (H7).
Job Satisfaction mediates the relationship between GHRMPs and Innovative Performance.

3. Methods

3.1. Data Collection Process and Sampling Selection

This study evaluates the interrelationships among GHRMPs and innovative performance (In_Perf) through the mediating role of individual green values (IGV) and job satisfaction (Satis). The study targeted and implemented uponfirst-line employees (those with direct contact with customers) at SME five-star hotels and travel agents’ in category A, in great Cairo, Egypt. Five-star hotels and category A travel agents were selected as they possess enough resources and capabilities to implement GHRMPs to attain innovative performance rather than the lower categories (i.e., one-, two-, and three-star hotels, and category B or C in travel agents). A drop-and-collect process was utilized to collect the required data based on the research team members’ personnel relationships and networks. All the research team members have experience in the hospitality industry, as they are academic (associated professors/ professors) in hotel and tourism management faculty and have wide networks with peers (human resource managers) in the empirical field. The survey was directed to HRM in hotels and travel agents to disseminate to front-line employees. The study scale items were originally derived from previous English literature. Thus, the study team translated the questionnaire into the home country language (Arabic), so the targeted respondents could understand. We adopted a convenience sampling approach in collecting the data attributable to its time- and money-saving advantages. A total of 605 valid replies were collected after dropping the questionnaires from the first week of October to the end of December 2022. To ensure respondents’ privacy, we clearly stated in the questionnaire introduction that we would strictly keep all the respondent information confidential, and that all the collected information would be aggregated for scientific purposes only.

3.2. The Study Measurements

All the utilized scales were obtained from related previous literature and showed proper psychometric properties. Depending on an extensive review of related previous studies, four dimensions were extracted. The GHRMPs variable was measured using six items based on a study by Yu et al. [78]. The innovative performance was operationalized using a six-item scale suggested by Wang and Netemeyer [79] and Azazz and Elshaer [80]. A 10-item scale by Macdonald and Maclntyre [81] and Al-Haidan et al. [82] was used to operationalize job satisfaction. Finally, five items from Chou [71] were used to measure individual green values. A Likert scale of five points was adopted, where one reflected “strongly disagree” and five meant “strongly agree”. The scale was validated by some academics and professionals in the hotel industry with no significant corrections (8).

3.3. Data Analysis Techniques

“Partial least squares” (PLS) and “Structural Equation Modeling” (SEM) were conducted so that the proposed theoretical hypotheses with mediating effects of individual green values and job satisfaction could be examined. PLS-SEM can retain many reflective items per dimension than other statistical methods (CB-SEM). We adopted Leguina’s [83] two-step method to evaluate the gathered data. In this method, the measurement model (named outer model) is evaluated for reliability and validity, and then the structural model (named inner model) can be tested to support or reject the justified proposed hypotheses. To test the outer model in PLS-SEM, we employed the recommended cut-off values suggested by Hair et al. [84], such as the “standardized factor loading” (>0.7), the “composite reliability, CR” (>0.7), the “average variance extracted, AVE” (>0.5), the “normed fit index” (higher than 0.90), the “Standardized root mean square Residual, SRMR” (<0.08). the R2 (>0.1), and the Stone-Geisser Q2 (>0.0).

3.4. Descriptive Results

The results stated that 75% of the targeted respondents (front-line employees) were male and 25% were female. Concerning the age level, 18% of the participants were >20 years old, 32% were aged between 26 and 35, 35% were aged between 36 and 45, and finally 15% were 46 years old or older. Accordingly, the majority of the employees are young and skilled in creating innovative performance.
The education level revealed by employees stated that 25% had a secondary school certificate, 70% had obtained an undergraduate degree, and only 5% had a postgraduate level. In total, 60% of the respondents were from five-star hotels, while 40% were from the travel agent sector. Moreover, 10% of employees had one year of experience, 35% had between 2 and 4 years of experience, 25% had between 5 and 7 years of experience, and 30% had 8 years or more of experience (as presented in Table 1).
Furthermore, in this study, the researchers employed the independent sample T-test to compare mean scores between early and late responses, and found no significant differences, suggesting that non-response bias was not a concern [85]. Additionally, we employed Harman’s single-factor procedure with SPSS v21 to investigate the presence of common method variance by conducting an exploratory factor analysis on all study variables without rotating the factors. The results revealed that one dimension accounted for 35% of the variance (<50%), indicating that common method variance was not a problem in the study [86]. This conclusion was further reinforced by examining the VIF values, which were all below five (as shown in Table 2), providing additional support that common method variance was not an issue [84].

3.4.1. Assessment of the SmartPLs SEM Outer Model

Several cutoff thresholds were followed to assess the outer measurement model’s validity and reliability (as presented in Table 2). These metrics include composite reliability (CR), Cronbach’s alpha (for internal consistency), and discriminant and convergent validity (for construct validity). In line with the findings in Table 2, the Cronbach’s alpha (α), C. R., and the AVE scores for all the latent dimensions surpassed the proposed cutoff level and indicated that the scale items have proper internal reliability and convergent validity [84].The dimensions entailed GHRMPS (a = 0.926, C.R = 0.933, AVE = 0.729); IGV (a = 0.927, C.R. = 0.927, Ave = 0.774); In_Perf (a = 0.924, C.R. = 0.927, AVE = 0.725); and Satis. (a = 0.933, C.R. = 0.940, AVE = 0.625).
Additionally, all “Standardized Factor Loadings” (SFL) exceeded the value of 0.70, adding more evidence supporting the adequacy of scale reliability. Moreover, discriminant validity was calculated in our study by three metrics as proposed by Leguina [83]: (1) “cross-loading”, (2) the “Fornell-Larcker criterion”, and (3) the “heterotrait-monotrait” (HTMT). As presented in Table 3, each latent variable’s items loading (bolded) exceeded the cross-loading (with other scale items).
Second, as presented in Table 4, the diagonal squared AVE values highlighted in bold are greater than the inter-variable correlation coefficient, indicating a high level of discriminant validity [84]. Third, according to Leguina [83], the value of the HTMT should be lower than 0.90. HTML levels (as presented in Table 4) were found to be lower than 0.90 (see Table 4). The previous results showed that the measures have adequate reliability, discriminant, and convergent validity. Therefore, we can move forward to assess the inner model for hypotheses testing.

3.4.2. Evaluation of the SmartPLs SEM Structural Model

After validating the measurement model’s adequate convergent and discriminant criteria, the structural model (Figure 1) was assessed. The key focus was on the model’s capability to explain and predict the effect of exogenous latent variables on the endogenous dependent latent variables [87]. Several metrics were examined to check the model’s goodness of fit (GoF). To secure a proper model fit, the minimum acceptable R2 score was 0.10 [84]. Accordingly, all the endogenous latent variables, GHRMPs, In_Perf., and Satis. had R2 values of 0.554, 0.670 and 0.273, respectively, supporting that the study model has adequate predictive power. Furthermore, The Stone-Geisser Q2 criteria displayed a value (GHRMPs, 0.548; In_Perf., 0.429; and Satis., 0.262) higher than zero, further supporting the predictive ability of the study model [88].
In the last step of the smart PLS4 calculations, a 5000 bootstrapping approach was conducted to assess the path coefficient effects and t significance values for the direct and mediating relationships (as presented in Table 5). Our study proposed and examined five direct and two mediating hypotheses (as seen in Figure 2). The Smart PLS findings revealed that GHMPs positively and significantly impact innovative performance (β = 0.186, t = 2.271, p = >0.05), individual green value (β = 0.744, t = 30.243, p > 0.001), and job satisfaction (β = 0.523, t = 10.639, p = >0.001), hence, we can accept hypotheses H1, H2, and H3. Similarly, IGV succeeded in positively and significantly impacting innovative performance (β = 0.386, t = 6.642, p < 0.001), and H4 is therefore supported. Additionally, job satisfaction was found to have a significant positive impact on innovative performance (β = 0.364, t = 6.131, p < 0.001), which supports Hypotheses H5.
For the mediating effects, the specific indirect effects in PLS-Sem revealed that IGV positively mediates the impact of GHRMPs and innovative performance (β = 0.287, t = 5.978, p < 0.001), therefore, Hypothesis H6 was accepted. Similarly, job satisfaction significantly mediates the relationship between GHRMPs and innovative performance (β = 0.190, t = 4.894, p < 0.001), hence we can accept Hypothesis H7. Finally, the total effects of GHRMPs on innovative performance showed a good explanatory power of 0.478.
Furthermore, the study used a widely accepted and recommended test called the variance accounted for (VAF) test to analyze the mediating effects. According to Hair et al. [89], if the VAF value is less than 20%, it is considered no mediation; if it falls between 20–80%, it is considered partial mediation; and if it is greater than 80%, it is considered full mediation. This can be calculated through the below equation:
VAF = Indirect effect/total effect
The study found that the VAF value was 60% for the mediation effect of the individual green value in the relationship between GHRMPs and innovative performance, and the VAF was 39.7% for the mediation effect of job satisfaction in the relationship between GHRMPs and innovative performance. These results indicate that individual green value and job satisfaction partially mediate the relationship between GHRMPs and innovative performance as seen in Table 5.

4. Discussion

According to the findings of the empirical study, our study reaches its goals and objectives while contributing to the existing literature on green management, specifically in the context of small- and medium-sized enterprises (SMEs) in the Middle East (a region that has received little attention), and theoretical development via the suggested model. The results showed that the GHRMPs positively affect innovative performance (H1). Here specifically, Seeck and Diehl [90] indicated that few studies have investigated the interaction between GHRMPs and innovative green performance. However, many previous studies argued that the effective implementation of innovative green performance is determined mainly by GHRMPs [91]. Thus, a lack of GHRMPs may result in an inability to engage pro-environmental employees, and traditional corporate culture may lead to a failure to adopt innovative green performance [92]. In agreement with Tuan [39] and Renwick et al. [46], GHRMPs also positively affect individuals’ green values (H2). In line with this result, the role of green human resources does not stop at selecting and recruiting employees with green values only, but through green training programs that increase the employees’ job satisfaction level (H4). These green values can be improved for new employees or generated for the current employees. On the same statistical path, individuals’ green values have a positive effect on innovative performance (H5). This finding is consistent with the value-belief-nor (VBN) theory and the supplies-values fit (SVF) theory, whereby employees’ green values are considered primarily positive attitudes of the employees toward innovative behavior and performance [75]. Regarding hypothesis (H3), GHRMPs succeeded in positively and significantly impacting job performance. Here, Koh and Boo [67] asserted that corporations’ ethical and green responsible activities, e.g., GHRMPs, are linked to employees’ positive attitudes at work, specifically job satisfaction [68]. In this case, job satisfaction may stem from the congruence between employees’ green values and organizational values [74]. The empirical results also indicated that the job performance has a positive effect on innovative performance (H5). Trivellas and Santouridis [77] argued that satisfied employees perform innovatively because they are more likely to accept the latest technology and innovative processes, as well as generate new ideas, hence promoting innovation [24].
One of the study’s primary aims was to test the mediating role of individuals’ green values and job satisfaction between GHRMPs and innovative performance. Individuals’ green values, according to the study’s results, succeeded in mediating the relationship between GHRMPs and innovative performance (H6). Here, Renwick et al. [46] display that GHRM, through recruitment, selection, and training tries to promote and create individual green values while an individual’s green values enhance innovative performance [76]. Similarly, job satisfaction successfully mediated the relationship between GHRMPs and innovative performance (H7). Shipton et al. [93] indicated that rare studies had analyzed the connection between employee job satisfaction and innovation performance. The few studies that addressed this relationship revealed that innovativeness and job satisfaction are interconnected, as job satisfaction has a significant positive impact on creativity and knowledge generation [94,95]. On the other hand, Ahmad and Umrani [66] argue that GHRMPs are one of the fundamentals of employee job satisfaction, thus validating the mediation of job satisfaction between GHRMPs and innovative performance.

5. Conclusion and Implications

5.1. Theoretical Implications

Small- and medium-sized enterprises (SMEs) are important drivers of innovation and economic growth. Yet, little is known about how GHRMPs impact innovative performance in these organizations. This study aimed to examine the mediating role of individual green values and job satisfaction in the relationship between GHRMPs and innovative performance in SMEs. Using a sample of 605 SMEs in the hospitality industry (hotel and travel agents) in Egypt, the study found that GHRMPs were positively related to both individual green values and job satisfaction, and in turn, individual green values and job satisfaction were positively related to innovative performance. The results of this study suggest that individual green values and job satisfaction significantly mediate the relationship between GHRMPs and innovative performance in SMEs.
Our research has several theoretical implications. First, it provides more in-depth insight into the function of GHRM in boosting employees’ green innovative performance in the workplace, precisely in small and medium enterprises’ hotel research in developing countries, thus adding to the green management literature. Previous practical studies on GHRMPs have mainly concentrated their influences on environmental performance, rarely considering other impacts on employees [25]. There needs to be more practical evidence, for example, concerning the impact of GHRMPs on job satisfaction—that is, how much an employee appreciates her job [26]. Second, as a field study, the current research depended on small and medium hotels in developing countries. In contrast, the application of GHRMPs in developing countries to date has yet to be mature. Since studies in this area always have focused on large businesses or factories, little is known about SMEs [29,96]. Moreover, our research contributes to the GHRM field as a still developing field and shows gaps to fill. The study is based on the ability-motivation-opportunity (AMO) theory and the supply-value-fit (SVF) theory to test the relationship between green human resource management practices and innovative performance, with the mediating effects of individual green values and job satisfaction, in trying to contribute to filling this gab.

5.2. Managerial Implications

The findings from this study have practical implications, as well, for organizations seeking to enhance their innovative performance through GHRMPs. First, organizations may want to consider implementing green training programs and eco-friendly policies to foster a culture of innovation and environmental commitment among employees. Second, organizations may want to prioritize the development of employees with high levels of green identification, as these individuals may be more likely to contribute to the organization’s innovative capabilities. This could involve providing opportunities for employees to get involved in environmental initiatives or offering incentives for suggesting eco-friendly ideas. Overall, the research on GHRMPs and innovative performance suggests that organizations that prioritize sustainability and adopt GHRMPs may be better equipped to foster a culture of innovation and generate new ideas that drive business growth and success while also promoting environmental responsibility.

5.3. Limitations and Future Research Opportunities

The study may have limited generalizability due to the use of a specific sample of SMEs. Further research should aim to replicate the study with a more diverse and representative sample. The study relies on self-reported measures of green values, job satisfaction, and innovative performance, which may be subject to bias. Future research could use more objective measures to reduce this bias. The study only considers the mediating role of individual green values and job satisfaction in the relationship between green HR practices and innovative performance. Other potential mediators, such as employee motivation and organizational culture, should be explored in future research. Additionally, the study only considered green HR practices as a predictor of innovative performance. Future research could examine the reverse relationship, examining whether innovative performance leads to adopting green HR practices. Moreover, further research should aim to replicate the study in a different cultural context to understand whether the findings are universal or culturally specific. Finally, using PLS-SEM with cross-sectional data is not appropriate for determining causal effects or outcomes [97], therefore, longitudinal studies could be conducted to understand the dynamic relationship between green HR practices, individual green values, job satisfaction, and innovative performance over time.

Author Contributions

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

Funding

The authors extend their appreciation to the deputyship of the Research and Innovation Ministry of Education in Saudi Arabia for funding this research work under the project number INST064.

Institutional Review Board Statement

The study was conducted according to the guidelines of the Declaration of Helsinki and approved by the deanship of the scientific research ethical committee, King Faisal University (project number: INST064, date of approval: 25 April 2022).

Informed Consent Statement

Informed consent was obtained from all subjects involved in the study. Data Availability Statement: Data is available upon request from researchers who meet the eligibility criteria. Kindly contact the first author privately through e-mail.

Data Availability Statement

Data are available upon request from main author.

Conflicts of Interest

The authors declare no conflict of interest.

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Figure 1. The proposed conceptual framework and hypotheses. GHRMPs → Green Human Resource Management Practices.
Figure 1. The proposed conceptual framework and hypotheses. GHRMPs → Green Human Resource Management Practices.
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Figure 2. The study model from the smart PLS4 program.
Figure 2. The study model from the smart PLS4 program.
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Table
Table 1. The employees’ characteristics.
Table 1. The employees’ characteristics.
N = 605
GenderExperience
Male75%one year10%
Female25%2 to 4 years35%
Agefrom 5 to 7 years25%
>20 years18%from 8 years or more30%
Between 26–3532%Sector
Between 36–4535%From 5-star hotels60%
46 years and above15%Travel agent sector40%
The education level
Secondary school25%
Undergraduate degree70%
Postgraduate level5%
Table
Table 2. Calculations of the Outer Model.
Table 2. Calculations of the Outer Model.
ItemsAbbrev.LoadingInner VIFαC.RAVE
Suggested Cutt-Off Level>0.7>5.0>0.7>0.7>0.5
Green Human Resource Practices (GHRMPs) 2.2680.9260.9330.729
Provide training programmes on environmental management for our employees (training and development)GHR(1)0.860
Organize environmental education activities for our employees (training and development)GHR(2)0.838
Promote employee participation for green development (employee motivation)GHR(3)0.911
Employees introduce environmental issues to customers (employee involvement)GHR(4)0.821
Purchasing personnel introduce environmental issues to suppliers (employee involvement)GHR(5)0.878
Purchasing personnel receive training regarding the purchase of environmentally friendly products (training and development)GHR(6)0.812
Individual Green Value (IGV) 2.7060.9270.9270.774
I feel a personal obligation to do whatever I can to prevent environmental degradationIGV(1)0.845
I feel obliged to save the environment from degradation, regardless of what others doIGV(2)0.867
People like me should do whatever they can to protect environment from degradationIGV(3)0.896
I feel guilty when I contribute to environmental degradationIGV(4)0.898
I feel obliged to keep the environment and nature in mind in my daily behaviorIGV(5)0.892
Innovative Performance(In_Perf) 0.9240.9270.725
I carry out my routine tasks in inventive waysIn-Perf.(1)0.811
I come up with new ideas for satisfying customer needsIn-Perf.(2)0.823
I generate and evaluate multiple alternatives for novel customer problemsIn-Perf.(3)0.873
I have fresh perspectives on old problemsIn-Perf.(4)0.898
I improvise methods for solving a problem when an answer is not apparentIn-Perf.(5)0.874
I generate creative ideas for service deliveryIn-Perf.(6)0.827
Job Satisfaction(Satis.) 1.6620.9330.9400.625
I receive recognition for a job well doneJ.Satis. (1)0.841
I feel close to the people at workJ.Satis. (2)0.842
I feel good about working at this companyJ.Satis. (3)0.837
I feel secure about my jobJ.Satis. (4)0.809
I believe management is concerned about meJ.Satis. (5)0.761
On the whole, I believe work is good for my physical heathJ.Satis. (6)0.762
My wage is goodJ.Satis. (7)0.745
All my talents and skills are used at workJ.Satis. (8)0.761
I get along with my supervisorsJ.Satis. (9)0.729
I feel good about my jobJ.Satis. (10)0.807
Table
Table 3. Cross-loading.
Table 3. Cross-loading.
GHRMPsIGVIn_Perf.J.Satis.
GHR(1)0.8600.7450.6640.555
GHR(2)0.8380.6080.6680.482
GHR(3)0.9110.6620.5290.420
GHR(4)0.8210.5760.4710.319
GHR(5)0.8780.6570.5250.373
GHR(6)0.8120.5300.5000.488
IGV(1)0.6910.8450.6860.560
IGV(2)0.6440.8670.6660.560
IGV(3)0.6380.8960.6770.556
IGV(4)0.6060.8980.6460.552
IGV(5)0.6870.8920.6300.519
In-Perf.(1)0.6130.6140.8110.662
In-Perf.(2)0.5570.5760.8230.497
In-Perf.(3)0.5490.7210.8730.631
In-Perf.(4)0.5760.6700.8980.668
In-Perf.(5)0.5650.6730.8740.578
In-Perf.(6)0.5300.5740.8270.534
J.Satis. (1)0.4800.6020.6630.841
J.Satis. (2)0.4160.5060.6160.842
J.Satis. (3)0.3800.5300.5940.837
J.Satis. (4)0.3000.4430.5920.809
J.Satis. (5)0.2210.3760.5120.761
J.Satis. (6)0.2930.4180.5120.762
J.Satis. (7)0.2170.3490.4390.745
J.Satis. (8)0.5820.5530.4980.761
J.Satis. (9)0.4770.4580.4810.729
J.Satis. (10)0.5950.5940.5920.807
Note: Bold values are items loading to its related factor.
Table
Table 4. Discriminant validity calculations.
Table 4. Discriminant validity calculations.
AVEs ScoresHTMT Scores
12341234
1-Green Human Resource0.854
2-Individual Green Value0.7440.880 0.794
3-Innovative Performance0.6640.7520.852 0.7080.809
4-Job Satisfaction0.5230.6250.7030.7910.5300.6560.744
Note: bold values are squared AVE values.
Table
Table 5. Hypotheses assessment.
Table 5. Hypotheses assessment.
βt-Valuep-Value
Direct path coefficients
H1: Green Human Resource -> Innovative Performance0.1862.2710.024
H2: Green Human Resource -> Individual Green Value0.74430.2430.000
H3: Green Human Resource -> Job Satisfaction0.52310.6390.000
H4: Individual Green Value -> Innovative Performance0.3866.6420.000
H5: Job Satisfaction -> Innovative Performance0.3646.1310.000
Specific indirect effects
H6: Green Human Resource -> Individual Green Value -> Innovative Performance0.2875.9780.000
H7: Green Human Resource -> Job Satisfaction -> Innovative Performance0.1904.8940.000
Total Effect
Green Human Resource -> Innovative Performance0.4789.2720.000
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Elshaer, I.A.; Azazz, A.M.S.; Fayyad, S. Green Human Resources and Innovative Performance in Small- and Medium-Sized Tourism Enterprises: A Mediation Model Using PLS-SEM Data Analysis. Mathematics 2023, 11, 711. https://doi.org/10.3390/math11030711

AMA Style

Elshaer IA, Azazz AMS, Fayyad S. Green Human Resources and Innovative Performance in Small- and Medium-Sized Tourism Enterprises: A Mediation Model Using PLS-SEM Data Analysis. Mathematics. 2023; 11(3):711. https://doi.org/10.3390/math11030711

Chicago/Turabian Style

Elshaer, Ibrahim A., Alaa M. S. Azazz, and Sameh Fayyad. 2023. "Green Human Resources and Innovative Performance in Small- and Medium-Sized Tourism Enterprises: A Mediation Model Using PLS-SEM Data Analysis" Mathematics 11, no. 3: 711. https://doi.org/10.3390/math11030711

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