Green human resource management (GHRM) has emerged as an essential strategy for achieving environmental sustainability within organizations. However, there remains a significant gap in understanding its direct impact on sustainable performance. This study seeks to address these gaps by investigating the relationship between GHRM and sustainable performance, with a focus on the mediating role of green innovation and the moderating influence of transformational leadership. A cross-sectional study was conducted among Malaysian small and medium-sized enterprises (SMEs) to explore the interrelationships between green HRM, green process and product innovation, sustainability, and the role of sustainable leadership. The study’s findings reveal a positive and significant relationship between green HRM practices and sustainability, encompassing environmental, economic, and social aspects. The findings suggest that management support for environmental initiatives is a critical factor in enhancing the effectiveness and spread of green innovations, emphasizing the importance of GHM in the broader context of organizational change and sustainability. In addition, the study underscores the critical role of transformative leadership in fostering sustainable practices, particularly the significant moderator role of responsible leadership in driving sustainable business practices. In summary, this study provides a roadmap for businesses, particularly SMEs, to leverage HGRM as a strategic tool in their pursuit of sustainability.

This study examines the adoption and institutionalization of Green Human Resource Management (Green HRM) in Malaysian SMEs, focusing on the influence of Perceived Organizational Green Readiness (POG) and Perceived External Green Readiness (PEG) on the institutionalization of Green HRM (ING). Utilizing structural equation modeling from a sample of 425 respondents for Malaysian SMEs, the research reveals that POG and PEG significantly predict the Initial adoption of Green HRM (IAG), which mediates their impact on ING. This study also identifies a moderating role of corporate social responsibility (CSR) in the relationship between IAG and ING. Theoretical contributions extend stakeholder theory, the E-Commerce Adoption Model, the Organizational Readiness to Change (ORC) framework, and CSR theory to the Green HRM context. The findings provide practical insights for SMEs on aligning Green HRM with organizational strategies and external factors for effective institutionalization. This research contributes to the understanding of Green HRM processes, emphasizing the importance of initial adoption and the intricate role of CSR in sustainable business practices.

Abstruct Green Human Resource Management (GHRM) has emerged as an essential strategy for achieving environmental sustainability within organizations. However, there remains a significant gap in understanding its direct impact on sustainable performance. This study seeks to address these gaps by investigating the relationship between GHRM and sustainable performance, with a focus on the mediating role of green innovation and the moderating influence of transformational leadership. A cross-sectional study was conducted among Malaysian small and medium-sized enterprises (SMEs) to explore the interrelationships between Green HRM, green process and product innovation, sustainability, and the role of sustainable leadership. The study's findings reveal a positive and significant relationship between green HRM practices and sustainability, encompassing environmental, economic, and social aspects. The findings suggest that management support for environmental initiatives is a critical factor in enhancing the effectiveness and spread of green innovations, emphasizing the importance of GHM in the broader context of organizational change and sustainability. In addition, the study underscores the critical role of transformative leadership in fostering sustainable practices, particularly the significant moderator role of responsible leadership in driving sustainable business practices. In summary, this study provides a roadmap for businesses, particularly SMEs, to leverage HGRM as a strategic tool in their pursuit of sustainability.