Unleashing Sustainable Performance in SMEs: The Synergistic Impact of Green HRM, Entrepreneurial and Market Orientation with the Mediating Role of Green Innovation

DOI

10.2991/978-94-6463-801-1_15How to use a DOI?

Keywords

Green Human Resource Management; Green Entrepreneurial Orientation; Green Market Orientation; Green Innovation; Sustainable Performance

Abstract

This research investigates how Green Human Resource Management (GHRM), Green Entrepreneurial Orientation (GEO), and Green Market Orientation (GMO) influence the Sustainable Performance (SP) of Small and Medium Enterprises (SMEs) in Pakistan’s construction sector. Green Innovation (GI) is examined as a mediating factor in this relationship. As global attention shifts toward sustainability, construction-related SMEs in Pakistan face notable difficulties in adopting environmentally responsible practices without endangering their long-term viability. The analysis emphasizes that environmentally conscious strategies linked to entrepreneurship and marketing contribute more effectively to sustainable outcomes than HR-led green approaches. A quantitative method was adopted, with survey data collected from 391 construction SMEs across Pakistan. The study applied random sampling and analysed the results using Partial Least Squares Structural Equation Modelling (PLS-SEM) via Smart-PLS 4.0. The results indicate that GEO has a positive impact on GI, while GMO improves both GI and SP. Although GHRM supports GI development, it does not have a measurable effect on SP. Furthermore, GI mediates the effects of GEO and GMO on SP, reinforcing its role in strengthening environmental practices within firms. However, GI does not serve as a mediator between GHRM and SP, which implies that HR-focused green initiatives may need further support to directly influence sustainability performance. The findings reinforce the importance of entrepreneurial and market-oriented green efforts in achieving sustainable business results. By focusing on the intermediary function of GI, this study presents empirical evidence to help Pakistani construction SMEs better integrate environmentally friendly strategies that support long-term sustainable performance.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Nazlina Zakaria
AU  - Umair Aftab Akhtar
AU  - Lily Julienti Abu Bakar
AU  - Nor Azimah Chew Abdullah
PY  - 2025
DA  - 2025/07/31
TI  - Unleashing Sustainable Performance in SMEs: The Synergistic Impact of Green HRM, Entrepreneurial and Market Orientation with the Mediating Role of Green Innovation
BT  - Proceedings of the 9th Terengganu International Business and Economics Conference 2025 (TiBEC IX 2025)
PB  - Atlantis Press
SP  - 204
EP  - 218
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-801-1_15
DO  - 10.2991/978-94-6463-801-1_15
ID  - Zakaria2025
ER  -