The Impact of Green Human Resource Management on the Economic and Environmental Performance of Small and Medium Enterprises (SMEs) in West Sumatra, Indonesia

Open

Sumiati, Yasri, Suhelmi Helia, Yass Andria, Afriyeni Afriyeni, Didi Aryadi, Edy Hasymi

2024 International Journal of Sustainable Development and Planning Vol. 19 Issue 8 Article Cited by 3 Quartile

Abstract

This research invites the owners of small and medium enterprises (SMEs) to consider green not only as a cost but also as a long-term investment. This research examines the relationship between green human resource management (GHRM) and performance. The data were collected through a structured questionnaire, and the unit of research analysis is the owner of SMEs. Partial least squares structural equation modeling (PLS-SEM) was used to test the hypothesis. The population of this research was SME owners in West Sumatra Province, which has 36,403 industrial areas. Purposive sampling was implemented so that 396 respondents were obtained. The research results show that GHRM positively affects green inputs, processes, and products. In addition, this research reveals that green inputs, processes, and products positively affect the economy and environmental performance; however, green products do not significantly affect social performance. Thus, this research recommends that owners be aware of the need to produce green products to improve SMEs' performance. Also, various related parties, such as the government, need to control raw material prices, the availability of raw materials, the marketing of finished products, dissemination, periodic training, and funding through financial institutions. © 2024 The authors.

Affiliations

Sekolah Tinggi Ilmu Ekonomi Keuangan Perbankan dan Pembangunan, Padang, 25173, Indonesia; Environmental and Development Studies, Faculty of Economics, Universitas Negeri Padang, Padang, 25131, Indonesia