From Environmental Responsibility to Sustainable Performance: Exploring Organisational Drivers in SMEs
DOI:
https://doi.org/10.62843/jssr.v6i3.796Keywords:
Environmental Responsibility, Sustainable Performance, Organisational Drivers, SMEs, Green InnovationAbstract
In this study the role of GHRM and Sustainable Performance in manufacturing SMEs has been explored. This study investigates that how two key factors Green Innovation and Responsible Leadership impact GHRM to Performance. The model is supported by the NRBV. GHRM builds capabilities that boost Green Innovation and Responsible Leadership, which will raise Performance. The study used a cross‑sectional design and gathered data from 150 employees and managers in Pakistani manufacturing SMEs via a self‑administered questionnaire. The questionnaire was about GHRM, Green Innovation, Responsible Leadership and Sustainable Performance on a five‑point scale. Respondents were chosen by purposive sampling to ensure they knew their organization’s HR and sustainability practices. Using Partial Least Squares Structural Equation Modelling in SmartPLS 4 the analysis showed that GHRM strongly boosts Green Innovation and Responsible Leadership. Green Innovation and Responsible Leadership then strongly raise Performance. The findings shows that GHRM improves Sustainable Performance through Green Innovation and Responsible Leadership. The indirect effects were statistically solid proving that Green Innovation and Responsible Leadership together explain how GHRM lifts Performance. The results give managers and HR staff in Karachi’s manufacturing SMEs advice: investing in green HR practices works best when green HR practices spark Green Innovation and Responsible Leadership. As environmental expectations and rules will help SMEs raise both Performance and long‑term competitiveness.
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Andrade, C. (2021). The inconvenient truth about convenience and purposive samples. Indian Journal of Psychological Medicine, 43(1), 86–88. https://doi.org/10.1177/0253717620977000
Bindeeba, D. S., Bakashaba, R., Tukamushaba, E. K., & Atuhaire, S. (2025). From green HRM to sustainable business performance: A two-stage meta-analytic SEM of the mediating role of green innovation. Cogent Business & Management, 12(1), Article 2536678. https://doi.org/10.1080/23311975.2025.2536678
CDPR. (2025). Greening Pakistan's textile value chain. Consortium for Development Policy Research. https://www.cdpr.org.pk/insights-for-change/greening-pakistans-textile-value-chain/
Fibre2Fashion. (2025, February 21). Pakistan's textile revolution: Leading the charge in sustainable fashion. https://www.fibre2fashion.com/industry-article/10318/pakistan-s-textile-revolution
Hashim, M., García Márquez, F. P., Baig, S. A., Asif, M., Nazim, M., & Sibtain, M. M. (2025). Sustainable leadership and green innovations: Catalysts for sustainable business performance in the textile sector of Pakistan. Business Strategy and the Environment, 35(2), 2675–2694. https://doi.org/10.1002/bse.70301
Huo, C., Safdar, M. A., & Ahmed, M. (2024). Impact of responsible leadership on sustainable performance: A moderated mediation model. Kybernetes, 53(12), 5263–5284. https://doi.org/10.1108/K-03-2023-0342
Suki, N. M., Suki, N. M., Sharif, A., Afshan, S., & Rexhepi, G. (2023). Importance of green innovation for business sustainability: Identifying the key role of green intellectual capital and green SCM. Business Strategy and the Environment, 32(4), 1542–1558. https://doi.org/10.1002/bse.3204
The Friday Times. (2025, January 29). Pakistan's textile industry at risk: Climate regulations threaten export growth. https://www.thefridaytimes.com/29-Jan-2025/pakistan-s-textile-industry-at-risk-climate
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