Nexus between GHRM and organizational competitiveness: role of green innovation and organizational learning of MNEs

• Published date: 01 June 2023
• Author: Patrick Obeng,Courage Simon Kofi Dogbe,Patience Ama Nyantakyiwaa Boahen
• Date: 01 June 2023
• DOI: http://doi.org/10.1111/basr.12310

ORIGINAL ARTICLE

Nexus between GHRM and organizational

competitiveness: role of green innovation and

organizational learning of MNEs

Patrick Obeng

1

| Courage Simon Kofi Dogbe

2

|

Patience Ama Nyantakyiwaa Boahen

3

1

Sheffield Business School, Sheffield

Hallam University, Sheffield, UK

2

Department of Management Studies

Education, Akenten Appiah-Menka

University of Skills Training and

Entrepreneurial Development, Kumasi,

Ghana

3

ICT Services Directorate, Takoradi

Technical University, Takoradi, Ghana

Correspondence

Courage Simon Kofi Dogbe, Department

of Management Studies Education,

Akenten Appiah-Menka University of

Skills Training and Entrepreneurial

Development, Kumasi, Ghana.

Email: courageskd@gmail.com

Abstract

The focus of this study was to assess the mediating

effect of green innovation, in the relationship between

green human resources management (GHRM) and

organizational competitiveness of manufacturing mul-

tinational enterprises (MNEs). The study further

looked at the moderating effect of organizational learn-

ing in the relationship between GHRM on organiza-

tional competitiveness of manufacturing MNEs. The

population comprises manufacturing MNEs in Ghana.

Through purposive and simple random sampling tech-

niques, 231 manufacturing MNEs were selected for the

study. Data was analyzed using frequencies, percent-

ages, mean scores, and Structural Equation Modeling

(SEM), using SPSS and SMART-PLS (Partial Least

Square) software. The study concludes that green inno-

vation partially mediates the relationship between

GHRM and organizational competitiveness. It was fur-

ther concluded that organizational learning positively

moderates the positive relationship between GHRM

and organizational competitiveness. The study recom-

mends that manufacturing MNEs should invest and

improve the level of their organizational learning as it

not only strengthens the effects of GHRM on organiza-

tional competitiveness, but it also directly improves

Received: 19 May 2022 Accepted: 25 January 2023

DOI: 10.1111/basr.12310

© 2023 W. Michael Hoffman Center for Business Ethics at Bentley University.

Bus Soc Rev. 2023;128:275–303. wileyonlinelibrary.com/journal/basr 275

competitiveness. Further, particular attention should

also pay to green innovation, as it intervenes the

relationship between GHRM and organizational

competitiveness.

KEYWORDS

competitive advantage, GHRM, green innovation

1|INTRODUCTION

The devastating consequences of rapid development and industrialization on the natural envi-

ronment are now obvious, leading to increasing emphasis on environmental sustainability by

both governments and business organizations (Singh & El-Kassar, 2019). Following the increas-

ing calls from customers, governments, and other environmental stakeholders, firms are now

beginning to consider their influence on the environment. Hence the importance of green

human resource management (GHRM) as an important strategy needed to be promoted in

order to maintain their reputation and achieve their required environmental goals (Guerci

et al., 2016). Thus, many organizations now consider GHRM practices as a necessity to

improving environmental performance and achieving competitive advantage (Guerci &

Carollo, 2016).

The term GHRM refers to “the HRM aspects of environmental management”(Renwick

et al., 2013, p. 1). It consists of all HRM practices redesigned to enhance environmental perfor-

mance. Some of these practices include green training and involvement, green hiring, and green

performance and compensation management (Saeed et al., 2019). According to Longoni et al.

(2018), GHRM can help improve employee competency and motivate them, as well as provide

them with better opportunities to engage in environmentally friendly activities. Such practices

reflect a firm's commitment to the protection and improvement of environmental conditions

(Tang, Walsh, et al., 2018). GHRM management practices also help firms to establish better

reputations (Tang, Chen, et al., 2018).

Given the important role of GHRM for an organization's environmental performance and

sustainability, its role and antecedents have been widely investigated (Renwick et al., 2013).

Literature has also investigated the relationship between GHRM and employee behavior and

firm performance (Chaudhary, 2019; Saeed et al., 2019; Tang, Chen, et al., 2018). This present

study focused on how GHRM influences multinational enterprises' (MNEs') competitiveness.

Furthermore, GHRM as an organizational strategy could foster a firm's competence in green

innovation, which could subsequently enhance its overall competitiveness in the marketplace

(Antonioli et al., 2013). A product or a process can be defined as innovative based on its ‘new-

ness’, that is, newness to the firm, the industry, and the customers (Dogbe et al., 2021). One can

differentiate green innovation from conventional innovation in terms of the ability of the

innovative idea to address environmental challenges (Chen & Chang, 2013). Borah et al. (2023)

argued that green innovation involves putting emphasis on innovation toward sustainable

development. According to Berrone et al. (2013) green innovation relates to the number of

product or process patents meant to solve environmental challenges. These green innovative

activities could, therefore, be a source of a firm's competitive advantage. These relationships

suggest that green innovation could potentially mediate the relationship between GHRM and

276 OBENG ET AL.