Green Human Resource Management and Employee Performance: Evidence from Developing Economies

Abstract

This study investigates the relationship of GHRM practices with employee performance within Nepalese organizations, with special attention to the mediating role of DHRIF. A descriptive and casual-comparative research design was followed; wherein primary data were gathered from 144 employees using standardized questionnaires. Analysis included descriptive statistics, correlation tests, multiple regression, and SmartPLS structural modeling with 5,000 bootstrapped samples. The results indicate that GKS and GTD retain positive correlations with employee performance, but their direct effects became insignificant during regression. GPA came up to have a significant positive influence on performance, though DHRIF was the most powerful predictor. Further structural model results showed DHRIF significantly mediates the effects of GKS, GTD, and GPA on performance, indicating that digital systems substantially strengthen the effectiveness of GHRM initiatives. The model explains 84.5% of the variance in employee performance, which further upholds the strategic value of integrating green HR practices along with robust digital infrastructures. These findings highlight the need for digitally enabled and environmentally oriented HR systems in organizations from developing economies to improve the performance of employees and to further sustainability goals.