The Influence of Green Human Resource Management and Green Innovation on Sustainable Economic Development Through MSME Performance
DOI:
https://doi.org/10.38035/dijefa.v7i4.7342Keywords:
Green Human Resource Management, Green Innovation, MSME Performance, Sustainable Economic Development, PLS-SEMAbstract
This study aims to analyze the effects of Green Human Resource Management (GHRM) and Green Innovation on Sustainable Economic Development through MSME Performance as a mediating variable. The study employed a quantitative approach with an explanatory research design involving 160 MSME respondents. Data were collected using a five-point Likert-scale questionnaire and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results show that GHRM does not have a significant effect on MSME Performance (β = 0.104; p = 0.116), whereas Green Innovation has a positive and significant effect on MSME Performance (β = 0.613; p < 0.001). GHRM has a positive and significant effect on Sustainable Economic Development (β = 0.408; p < 0.001), whereas Green Innovation does not have a significant effect (β = 0.132; p = 0.214). MSME Performance has a positive and significant effect on Sustainable Economic Development (β = 0.212; p = 0.039). MSME Performance also does not mediate the effects of GHRM (β = 0.022; p = 0.288) or Green Innovation (β = 0.130; p = 0.054) on Sustainable Economic Development. The R² value for MSME Performance is 45.3%, while the R² value for Sustainable Economic Development is 39.6%. These findings underscore the importance of Green Innovation in enhancing MSME Performance and highlight the direct role of GHRM in supporting Sustainable Economic Development.
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