Impact of Green Human Resource Management Practices on Organizational Performance: A Study on Manufacturing Organizations in Bangladesh

Introduction

Over the last few decades, increasingly severe environmental degradation, driven by climate change and resource scarcity, has forced organizations globally to incorporate sustainability as a key element of their core strategies. More importantly, regulators and consumers alike are pressuring the manufacturing sector to adopt sustainable practices amid competitive pressures. In this regard, Green Human Resource Management (GHRM) serves as a strategic environmental lever that has already been integrated into organizations’ human resource management strategies. GHRM comprises human resource management practices oriented toward helping the organization pursue excellence in its environmental performance by embedding environmental issues and considerations into operational-level HR systems (Renwick et al., 2013). The GHRM concept rests on the perspective that employees play a crucial role in shaping environmental policies to produce intended outcomes. The Ability-Motivation-Opportunity (AMO) framework posits that organizations can enhance green capabilities, foster pro-ecological intentions and behaviors, and provide opportunities for green contributions, thereby optimizing environmental performance as well as overall performance (Renwick et al., 2013). Positive GHRM practices and employee green behaviors, innovation, and other organizational outcomes in the diffuse areas of economic and social sustainability factors (Jabbour & Santos, 2008) are positively correlated with positive environmental outcomes, which are increasingly supported by empirical evidence. They establish a green organizational culture, help use resources efficiently, minimize waste, and improve corporate reputation; all this gives an edge over competitors in the long run. In developing economies such as Bangladesh, the manufacturing sector, particularly the ready-made garment (RMG) industry, in addition to other allied manufacturing industries associated with it, is a significant contributor to GDP growth, employment, and export earnings. Some of the environmental issues include water wastage, water consumption, pollution from waste in water, and energy use. The need for saleable supply chains on the part of international buyers, as well as the pressure created by regulatory cycles in Bangladesh, for example, adopting global ideas like sustainable development goals (SDGs), emphasize that manufacturing companies in Bangladesh take greener routes. Hosain et al. (2025) and Amin et al. (2025) examined the association between green human resource management practices (GHRM), such as green training, green performance management, and recruitment, and firm environmental performance. However, despite these developments, although there are a few studies that investigate the impact of GHRM practices on multidimensional organizational performance in Bangladeshi manufacturing, this area has not received sufficient research attention. The available evidence is concentrated on environmental performance or on the RMG sub-sector alone, and further study is needed to show how this interacts with wider business outcomes.

While some studies focus on manufacturing performance in general or include environmental and economic performance alongside social aspects, fewer studies address other aspects of social performance. Additionally, previous research has provided limited empirical validation of the relationship between specific GHRM practices and subsequent organizational performance, with the relationship mostly mediated by employee green behavior or other variables (Hosain et al., 2025; Uddin, 2025). This is vital to provide managers and policymakers with the specific contextual evidence they need within such a labor-intensive export economy.

Thus, this study explores the effect of GHRM practices on OP in Bangladeshi manufacturing firms. This paper contributes to the sustainable HRM theoretical literature by examining the crucial dimensions of GHRM and their relationship to performance outcomes. It can also assist practitioners in the industry in enhancing competitiveness by implementing GHRM practices, informed by an understanding of how each dimension correlates across companies. The outcomes will assist in building a successful GHRM system for the management of an association that can navigate the difficulties and opportunities that senior management would need to identify in Bangladesh’s manufacturing sector.

Literature Review

With increased concerns about the environment and how it affects business, Green Human Resource Management (GHRM) is a strategic approach that is important for many organizations that want to incorporate the environment into HR practices. It involves green recruitment and selection, green training and development, green performance evaluation, and green compensation and recognition to foster trust for employees to engage in behaviors that promote ecological goals (Renwick et al., 2013). With growing global environmental stress and the thrust towards sustainable development, the concept of GHRM can be viewed from two theoretical perspectives: the Resource-Based View (RBV) and the Ability-Motivation-Opportunity model (AMO), which suggests that developing green competencies, encouraging pro-ecological behavior, and offering opportunities to engage in sustainable activities can enable organizations to gain competitive advantages in terms of their performance (Chowdhury et al., 2025). Of these, the size of the associations in economic, social, and overall sustainable performance is also significant, consistently supported by empirical evidence showing positive effects from GHRM practices on these facets of organizational performance. The particularly relevant practices are identified by systematic literature reviews, such as green training and development and green performance management, in which employees’ skills are developed and in which the appraisal systems are linked to environmental goals. Further results of the meta-analysis indicate that the economic results of GHRM have both direct and indirect impacts, through enhanced environmental performance and GSCM (Carballo-Penela et al., 2023). Employee green behaviour is typically considered a key mediating factor linking GHRM practices to the desired environmental outcomes at the firm level (Islam et al., 2025). GHRM has been linked with enhancing productivity, innovation, and sustainability in the manufacturing sector, particularly in emerging economies. GHRM is thought to empower green innovation, pro-ecological behavior, and employee engagement, thereby boosting employee productivity (Li et al., 2019; Islam et al., 2025) and, in turn, promoting environmental, economic, and social performance. In the industry field, the research results show that the practice of Green Job Analysis, Training, and Reward is an important and effective method that can improve environmental performance, as it introduces sustainability into the daily activities of companies. These practices are essential to help companies minimize waste, reduce energy usage, and maximize resource efficiency, which ultimately helps in achieving a sustainable long-term competitive advantage. The literature reviewed portrays Bangladesh as the world’s second-largest exporter of ready-made garments, where the large RMG and textile sectors, which dominate export-oriented fashion manufacturing for the world, are increasingly relevant in view of environmental issues and the necessity of foreign buyers to see proof of sustainability. The study carried out on the manufacturing firms of Bangladesh demonstrates that green recruitment and selection, green training and development, and green performance management are significantly positively related to the performance of the firms (Hossain et al., 2025). Moreover, the textile industry shows that integrating GHRM with GSCM can positively impact sustainable performance due to its positive effects on the environment and workforce (Ali et al., 2024). The same evidence is provided by the LEED Certified Garment business in Bangladesh, which adds a bridge between GHRM and sustainable performance, mediation of circular economy practices, and green knowledge sharing (Amin et al., 2025). In the textile sector, green training and green performance management have the most positive direct impact on organizational performance, and other practices, like green recruitment and green compensation, have less clear, less positive, or no impact at all in some samples. There is more work showing that GHRM fosters employee engagement and psychological well-being, which ultimately enhance firms’ performance and productivity in Bangladeshi manufacturing and textile firms (Islam et al., 2025). Nevertheless, although there are positive results, there are gaps in the literature and contextual elements that are mentioned. While GHRM is a novel field of study and only partially implemented in various sectors, managerial commitment and constraints on resources and regulatory inefficiencies have restricted the support provided to GHRM in Bangladesh (Ali et al., 2025). The most researched outcome is environmental performance, whereas other outcomes relating to pure financial performance tend to be more indirect and can be explained through mediators, such as innovation or green organizational culture (Chowdhury et al., 2025). In general terms, this literature review provides a strong basis of evidence for the beneficial effects of GHRM practices on organizational performance. Bangladesh, in fact, will embark on a journey of discovery for applying GHRM and contributing to the operational and competitive advantage of manufacturing organizations, given the particular implications of sustainability expectations on organizations in Bangladesh. The combination of evidence on key practices and theoretical frameworks gives a strong foundation for empirical research in this particular segment. It offers ideas for implementation strategies which might be valuable in specific contexts.

Hypothesis Development

A. GHRM and Organizational Performance

Green human resource management (GHRM) focuses on initiatives that raise employees’ awareness of a range of environmental objectives and help organizations build capabilities that support stronger ecological responsibility and superior performance. Building on the Ability-Motivation-Opportunity (AMO) theoretical framework, GHRM practices positively influence employees’ green abilities through recruitment and training, enhance motivation to engage in eco-friendly behaviors through performance management and reward systems, and create opportunities for involvement in sustainability initiatives (Renwick et al., 2013). These practices are especially pertinent to manufacturing-related firms in Bangladesh with substantial exports, which need rapid, sustainable performance but often have limited time and resources.

GHRM practices are consistently and positively linked to improved organizational outcomes, as evidenced by empirical data. A green recruitment and selection process leads to the attainment of candidates who are in alignment with environmental values, thus preparing a workforce that is predisposed to engage in sustainable processes, which ultimately improve firm environmental performance as well as overall performance (Yong et al., 2020). Green training and development can provide employees with the knowledge and skills needed for resource-efficient, waste-minimizing operations, which can be transformed into quantifiable benefits in terms of operational efficiency and environmental performance (Jabbour & Santos, 2008). Likewise, sustainability-aligned green performance management and appraisal systems assist in linking individual aspirations to corporate sustainability objectives whilst promoting accountability and improving commitment to continuous improvement.

Within the Bangladeshi manufacturing context, more specifically in textiles and its related sectors, research evidence supports that GHRM practices positively affect sustainability and organizational performance. Studies by Amin et al. (2025) found positive relationships between sustainability performance dimensions and GHRM practices when sampling LEED-certified garment firms as well as broader manufacturing samples. Evidence from Bangladeshi manufacturing firms shows that all green recruitment, training, and performance management practices have a positive impact on firm environmental performance.

Given these results, researchers might conclude that GHRM may be needed in enhancing OP. The theoretical and empirical insights imply that the adoption of GHRM practices in a systematic manner improves capabilities, use of resources, and performance at various organizational levels. Consequently, the implementation of green HRM practices might influence organizational performance. Accordingly, the author states:

Hypothesis (H): There is a positive significant effect of GHRM practices on OP

Methodology and Measurement

A. Data Collection and Sample

To examine and test the hypothesis, data were collected from employees of organizations in Bangladesh’s manufacturing industry. This study selected manufacturing industry organizations for two reasons: First, Bangladesh has a growing manufacturing industry. Second, Bangladesh is entering a green transformation and upgrading the manufacturing industry.

After administering a questionnaire, the researcher identified two organizations in the manufacturing industry. A total of 150 questionnaires were collected from the survey, and invalid responses, such as those with irregular answers, were eliminated. Finally, 132 samples were used for research and analysis, and the questionnaire’s effectiveness rate was 88%. Valid questionnaires were obtained from 76.5% males and 23.5% females. Among them, 15.9% were aged 18 to 25, 62.9% were aged 26 to 35, 15.9% were aged 36 to 45, and 5.3% were aged 46 to 55 and above.

B. Variable Measurement

The variables of GHRM and OP were measured using a questionnaire with scales adapted from other studies to ensure the structure’s validity. A few items were modified to reflect the Bangladesh context. Except for the control variables, all items were measured on a five-point Likert scale (1 = strongly disagree to 5 = strongly agree).

This study used a nine-item scale to measure GHRM. The nine items are as follows: (1) My company sets green goals for its employees. (2) My company provides employees with green training to promote green values. (3) My company provides employees with green training to develop employees’ knowledge and the skills required for green management. (4) My company considers employees’ workplace green behavior in performance appraisals. (5) My company relates employees’ workplace green behavior to rewards and compensation. (6) My company considers employees’ workplace green behavior in promotions. (7) My organization considers personal identity-environmental management fit in recruitment and selection. (8) Employees fully understand the extent of corporate environmental policy. (9) My organization encourages employees to provide suggestions for environmental improvement. Cronbach’s alpha for this scale was 0.745.

This study selected five items to measure OP. The items are as follows: (1) The organization has improved resource efficiency. (2) Waste and environmental risks are effectively controlled. (3) Environmental practices support operational efficiency. (4) Green initiatives strengthen employee engagement. (5) Environmental responsibility improves organizational reputation. Cronbach’s alpha for this scale was 0.719.

Data Analysis

SPSS 27.0 was used to analyze the data. This statistical software was used to test the reliability of the two key variables involved in this study. It was also used for descriptive statistics and correlation analysis, and finally for regression analysis to test the hypotheses.

Results

Table 1: Descriptive statistics and correlation coefficients of variables. N = 132. * p < 0.05; p < 0.1.

Several statistically significant associations are evident in the correlation matrix (Table 1). The gender variable showed a negative and significant correlation with age (r = −0.379, p < 0.05). Adam et al. (2026) found a statistically significant difference in age according to gender. Similar findings were also identified in the study of Islam (2025). Age was also negatively and significantly correlated with marital status (r = −0.379, p < 0.05). The study of Revathy et al. (2024) and Cui et al. (2025) supported this finding. Thus, the above findings indicate that older respondents systematically differed from younger ones in our sample in terms of gender and marital status.

A positive and statistically significant key substantive relationship between GHRM and OP was found (r = 0.317, p < 0.05). This implies that green human resource management practices are positively related to organizational performance. The finding of a significant positive relationship between GHRM and OP serves as preliminary empirical support for an expected theoretical relationship, namely that the stronger the green HRM practices employed, the superior the performance. Such results are thus consistent with the research hypothesis, offering an initial confirmation of the hypothesis.

A. Hypothesis Testing

In order to test the predictive effect of GHRM on OP, a simple linear regression analysis was conducted. These are reported below along with the model summary, ANOVA, and coefficient results.

The multiple correlation coefficient obtained from the regression model (Table 2) is R = .317, which suggests a positive correlation between GHRM and OP. The coefficient of determination (R2= 0.101) shows that GHRM explains only about 10.1% of the variance in organizational performance. The adjusted R² of 0.094 indicates that GHRM retains explanatory power after adjusting for the number of predictors, a modest but meaningful contribution. The standard error of the estimate was 0.549. The R² change of .101 was statistically significant (F-change = 14.570, df1 = 1, df2 = 130, p < .001). The overall regression model was also statistically significant, F (1, 130) = 14.570, p < .001. The results for the ANOVA indicated a regression sum of squares = 4.392 (mean square = 4.392) and a residual sum of squares = 39.187 (mean square = .301) had a total sum of squares of 43.579. These findings further validate that adding GHRM significantly enhances the prediction of organizational performance beyond the intercept-only model.

Table 2: Regression model summary. Predictor: (Constant), Green Human Resource Management. Dependent variable: Organizational Performance.

Table 3: Analysis of variance. Dependent variable: Organizational Performance. Predictor: (Constant), Green Human Resource Management.

The unstandardized regression equation is:

OP = 2.627 + 0.353 (GHRM)

The intercept was statistically significant (B = 2.627, SE = .352, t = 7.458, p < .001, 95% CI [1.930, 3.324]). GHRM was identified as a major positive predictor of organizational performance (B = .353, SE = .092, β = .317, t = 3.817, p < .001, 95% CI [ 0.170, 0.536]). The standardized coefficient (β = .317) shows that an increase of one standard deviation in GHRM will have a .317 standard deviation increase in OP. Collinearity diagnostics indicate that Tolerance = 1.000 and VIF = 1.000 hence, confirming the absence of multicollinearity.

Table 4: Regression coefficients. Dependent variable: Organizational Performance.

Discussion

By showing the positive and substantial relationship of GHRM with Organizational performance, this research fully supports the increasing literature on green human resource practices as a critical player for firm-level results. By encouraging employees to engage in eco-friendly behaviors, gaining legitimacy in order to govern better and possibly improving the efficiency of resources, GHRM seems to enable superior performance. The strength of the correlation is consistent with studies that have previously observed small to medium effect sizes for the GHRM performance link, supporting a view that green HRM is one of multiple important contributors towards driving better performance in our organizations. The observed outcomes of this study are consistent with the earlier observations by (Carballo-Penela et al., 2023; Lawter & Garnjost, 2025; Guo et al., 2025). The relatively low R² that we find in the present model is theoretically reasonable. It is a multi-determined construct of the state of the market, strategic leadership at the top level, innovation capabilities, supply-chain practices, and pressures from the institutional environment. Thus, for any given managerial system, GHRM includes some other unexplored phenomenon that accounts for at least part of performance variance.

Additionally, the findings of this study confirm the Ability−Motivation−Opportunity (AMO) model and resource-based view. Recruitment and selection increase employee green abilities, whereas performance management & rewards strengthen motivation, involvement, & empowerment, creating opportunities to nurture the human capital resources that contribute to superior performance by making them valuable, rare, and inimitable (Renwick et al., 2013; Guo et al., 2025). Practically, these findings can help organizations to prioritize GHRM systems strategically. Instead of isolated initiatives, managers aiming at performance improvement need to invest in coherent bundles of green HR practices. Even incremental advancements in GHRM use have the potential for observable outcomes.

Research Limitations and Further Research Directions

The relatively low Durbin-Watson statistic of this study suggests conducting residual diagnostics and possibly robust standard errors or adding other controls to future models. The cross-sectional design prohibits strong causal claims; longitudinal or multi-source designs would be required to strengthen inferences. Additionally, the modest explained variance indicates future studies need to include mediators (i.e., green innovation or employee pro-environmental behavior) and moderators (i.e., green strategy, industry type, or national culture) for a more in-depth mapping of the mechanisms underpinning this relationship as well as their appropriate boundary conditions.

There is a rising trend of using multilevel modeling in HRM research (Shen, 2015). Because perceptions of HRM practices are similar among employees in the same organization and different between organizations, employee outcomes of HRM practices inherently involve organizational contextual effects (Shen, 2015). Therefore, higher levels of analysis such as the GHRM-OP relationship may need to be considered. A multilevel approach was hard to utilize for this study due to the limited sample. The implications of this study suggest that future studies need to employ the multilevel approach and keep in view that GHRM research is an organizational contextual effect.

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