Leveraging Fintech to Revolutionize Green HRM Practices: Enhancing Workforce Retention and Performance in MSMEs
Keywords:
Green Human Resource Management; Fintech; Employee Retention; Employee Performance; MSMEsAbstract
This study investigates how financial technology (fintech) transforms Green Human Resource Management (GHRM) practices to enhance employee performance and retention in MSMEs across Indonesia, Malaysia, Vietnam, and Thailand. Using SEM on data from 400 MSMEs, fintech adoption in GHRM significantly improved employee retention and performance, with retention mediating the relationship. Digital training and development had the strongest influence. Cross-country differences revealed greater effectiveness in Indonesia and Malaysia. The study offers theoretical contributions by integrating fintech into GHRM discourse and provides practical guidance for MSMEs to strategically leverage digital tools in advancing sustainable human capital outcomes
References
[1] Y. J. Kim, W. G. Kim, H. M. Choi, and K. Phetvaroon, “The effect of green human resource management on hotel employees’ eco-friendly behavior and environmental performance,” Int. J. Hosp. Manag., vol. 76, pp. 83–93, 2019, doi: 10.1016/j.ijhm.2018.04.007.
[2] D. Palupiningtyas and A. Wahono, “GHRM is a strategic approach that embeds environmental sustainability principles into HRM practices, aiming to develop environmentally conscious employees and promote long-term organizational performance,” 2023.
[3] N. T. Pham, Z. Tučková, and C. J. C. Jabbour, “A. Greening the hospitality industry: How do green human resource management practices influence organizational citizenship behavior in hotels? A mixed-methods study,” Tour. Manag., vol. 72, pp. 386–399, 2019, doi: 10.1016/j.tourman.2018.12.008.
[4] D. W. S. Renwick, T. Redman, and S. Maguire, “Green human resource management: A review and research agenda,” Int. J. Manag. Rev., vol. 15, no. 1, pp. 1–14, 2013, doi: 10.1111/j.1468-2370.2011.00328.x.
[5] O. Fawehinmi, M. Y. Yusliza, Z. Mohamad, J. N. Faezah, and Z. Muhammad, “Assessing the green behaviour of academics: The role of green human resource management and environmental knowledge,” Int. J. Manpow., vol. 41, no. 7, pp. 879–900, 2020, doi: 10.1108/IJM-07-2019-0347.
[6] J. Y. Yong, M. Y. Yusliza, T. Ramayah, K. Farooq, and M. I. Tanveer, “Accentuating the interconnection between green intellectual capital, green human resource management, and sustainability,” Benchmarking An Int. J., vol. 30, no. 8, pp. 2783–2808, 2023, doi: 10.1108/BIJ-11-2021-0641.
[7] D. Palupiningtyas, R. Octafian, N. Mistriani, K. N. D. Ayunda, and M. A. Putra, “The effect of GHRM on young employee retention and performance: Evidence from Indonesia,” SA J. Hum. Resour. Manag., vol. 23, no. 0, p. 2886, 2025, doi: 10.4102/sajhrm.v23i0.2886.
[8] A. Saputro and L. C. Nawangsari, “The effect of green human resource management on Organization Citizenship Behaviour for Environment (OCBE) and its implications on employee performance at PT Andalan Bakti Niaga,” Eur. J. Bus. Manag. Res., vol. 6, no. 1, pp. 174–181, 2021, doi: 10.24018/ejbmr.2021.6.1.716.
[9] W. Wowor, D. Purwana, and T. Suyatno, “Employer brand and employee engagement as predictors of turnover intention in the hospitality industry,” J. Mantik, vol. 6, no. 3, pp. 2740–2747, 2022, doi: 10.35335/mantik.Vol6.2022.2957.
[10] M. Guerci, A. Longoni, and D. Luzzini, “Translating stakeholder pressures into environmental performance – the mediating role of green HRM practices,” Int. J. Hum. Resour. Manag., vol. 27, no. 2, pp. 262–289, 2016, doi: 10.1080/09585192.2015.1065431.
[11] A. Longoni, D. Luzzini, and M. Guerci, “Deploying environmental management across functions: The relationship between green human resource management and green supply chain management,” J. Bus. Ethics, vol. 151, no. 4, pp. 1081–1095, 2018, doi: 10.1007/s10551-016-3228-1.
[12] N. Jayabalan, Z. Mohd Makhbul, R. K. M. H. Mohamed, H. Yusof, and M. Farhana, “The role of OCBE on green HRM towards performance sustainability,” Int. J. Innov. Creat. Chang., vol. 13, no. 5, pp. 388–399, 2020.
[13] Y. M. Yusoff, M. Nejati, D. M. H. Kee, and A. Amran, “Linking green human resource management practices to environmental performance in hotel industry,” Glob. Bus. Rev., vol. 21, 2020.
[14] J. Dumont, J. Shen, and X. Deng, “Effects of green HRM practices on employee workplace green behavior: The role of psychological green climate and employee green values,” Hum. Resour. Manage., vol. 56, no. 4, pp. 613–627, 2017, doi: 10.1002/hrm.21792.
[15] H. A. Masri and A. A. Jaaron, “Assessing green human resources management practices in Palestinian manufacturing context: An empirical study,” J. Clean. Prod., vol. 143, pp. 474–489, 2017, doi: 10.1016/j.jclepro.2016.12.087.
[16] J. F. Hair, J. J. Risher, M. Sarstedt, and C. M. Ringle, “When to use and how to report the results of PLS-SEM.,” Eur. Bus. Rev., vol. 31, 2019.
[17] S. H. Appelbaum, D. Louis, D. Makarenko, J. Saluja, O. Meleshko, and S. Kulbashian, “Participation in decision making: A case study of job satisfaction and commitment (part three),” Ind. Commer. Train., vol. 45, no. 7, pp. 412–419, 2013, doi: 10.1108/ICT-09-2012-0049.
[18] S. Ren, G. Tang, and S. E. Jackson, “Green human resource management research in emergence: A review and future directions.,” Asia Pacific J. Manag., vol. 35, 2018.
[19] A. Saeed, F. Rasheed, M. Waseem, and M. I. Tabash, “Green human resource management and environmental performance: The role of green supply chain management practices,” Benchmarking, vol. 29, no. 9, pp. 2881–2899, 2022, doi: 10.1108/BIJ-05-2021-0297.
[20] M. Sholihin, S. Wahyuni, N. Muttaqin, and S. Haryono, “Driving factors of SMEs’ adoption of financial technology in a developing country: Extending UTAUT with perceived risk and perceived cost,” J. Small Bus. Enterp. Dev., vol. 30, no. 2, pp. 417–438, 2023, doi: 10.1108/JSBED-04-2022-0159.
[21] X. Wang, X. Lin, and D. Gursoy, “Integrating technology application into functional areas of human resource management: A conceptual framework and empirical analysis,” Int. J. Contemp. Hosp. Manag., vol. 33, no. 10, pp. 3548–3576, 2021, doi: 10.1108/IJCHM-09-2020-1075.
[22] S. Ahmad, “Digital transformation in human resource management: Challenges and opportunities for sustainable development,” Int. J. Inf. Manag. Data Insights, vol. 2, no. 1, p. 100085, 2022, doi: 10.1016/j.jjimei.2022.100085.
[23] S. K. Singh and P. Mishra, “Extending the knowledge sharing framework in big data analytics enabled HRM research: A critical analysis,” Int. J. Manpow., vol. 42, no. 6, pp. 1147–1169, 2021, doi: 10.1108/IJM-04-2020-0196.
[24] L. Zhao, X. Guo, Y. Liu, and J. Chen, “The impact of digital technology on sustainable human resource management: A multi-level framework,” Int. J. Hum. Resour. Manag., vol. 35, no. 3, pp. 399–426, 2024, doi: 10.1080/09585192.2022.2031469.
[25] J. K. Kim, J. J. Yang, and Y. K. Lee, “The impact of transformational leadership on service employees in the hotel industry,” Behav. Sci. (Basel)., vol. 13, no. 9, pp. 93–112, 2023, doi: 10.3390/bs13090731.
[26] J. W. Han, “A review of antecedents of employee turnover in the hospitality industry on individual, team and organizational levels,” Int. Hosp. Rev., vol. 36, no. 1, pp. 156–173, 2022, doi: 10.1108/IHR-09-2020-0050.
[27] M. Aggarwal, M. Dutta, V. Madaan, L. Tam Pham, and M. Lourens, “Impact of green human resource management on sustainable performance,” in E3S Web of Conferences, 2023, p. 7005. doi: 10.1051/e3sconf/202339907005.
[28] K. Vanisri and P. Padhy, “Examining the role of green human resource management practices on environmental behavior with the environmental knowledge mediation effect,” Int. J. Hum. Cap. Urban Manag., vol. 9, no. 2, pp. 317–330, 2024, doi: 10.22034/IJHCUM.2024.02.09.
[29] R. Octafian and K. S. Nugraheni, “Employee performance analysis through motivation and the work environment at Patra Semarang Hotel & Convention,” Nusant. J. Soc. Sci. Humanit., vol. 1, 2020.
[30] G. Tang, Y. Chen, and Y. Chen, “Green human resource management practices and firm performance: Examining the role of green innovation,” Int. J. Manpow., vol. 43, no. 4, pp. 1046–1066, 2022, doi: 10.1108/IJM-10-2020-0478.
[31] M. R. Mohamad Mazlan and M. Jambulingam, “Challenges of talent retention: A review of literature,” J. Bus. Manag. Rev., vol. 4, no. 2, pp. 78–91, 2023, doi: 10.47153/jbmr42.6302023.
[32] T. T. Nguyen, T. T. H. Nguyen, and T. T. Le, “Digital learning platforms and employee green behavior: The mediating role of environmental knowledge,” Int. J. Manpow., vol. 44, no. 1, pp. 117–136, 2023, doi: 10.1108/IJM-07-2021-0424.
[33] A. Kwilinski, O. Chygryn, and O. Lyulyov, “Digital transformation and sustainability: The mediating role of green human resource management,” Sustainability, vol. 15, no. 5, p. 4357, 2023, doi: 10.3390/su15054357.
[34] X. Li, K. Wang, and W. Chen, “How and when green HRM enhances employee green innovation: A moderated mediation model,” J. Clean. Prod., vol. 423, p. 138776, 2024, doi: 10.1016/j.jclepro.2023.138776.
[35] Y. Zhao and Y. Cui, “In the MSME context, where resources for onboarding and training new employees are often limited, employee retention is crucial for sustaining competitive advantage,” [Journal Name], 2023.
[36] M. R. B. Rubel, N. N. Rimi, M. Y. Yusliza, and D. M. H. Kee, “High commitment green human resource management and employee green behavior: The mediating role of environmental knowledge,” Empl. Relations, vol. 44, no. 3, pp. 690–715, 2022, doi: 10.1108/ER-02-2021-0068.
[37] L. Zhang, Y. Huang, and Y. Liu, “Digital transformation of human resource management: Exploring the impact of mobile technology on recruitment and selection,” J. Enterp. Inf. Manag., vol. 35, no. 6, pp. 1608–1630, 2022, doi: 10.1108/JEIM-06-2021-0265.
[38] X. Chen and D. Li, “Linking green human resource management to employee green behavior: The role of green psychological climate and environmental knowledge,” J. Environ. Manage., vol. 332, p. 117301, 2023, doi: 10.1016/j.jenvman.2023.117301.
[39] Y. Bai, J. Wang, and L. Zhang, “Cultural differences in the effectiveness of green human resource management: A cross-national study,” J. Clean. Prod., vol. 398, p. 136578, 2023, doi: 10.1016/j.jclepro.2023.136578.
[40] A. Shafaei and M. Nejati, “Green human resource management and employee innovative behaviour: Does inclusive leadership play a role?,” Pers. Rev., 2023, doi: 10.1108/PR-04-2021-0239.
[41] A. Tandon, A. Dhir, P. Madan, S. Srivastava, and J. L. Nicolau, “Green and non-green outcomes of green human resource management (GHRM) in the tourism context,” Tour. Manag., vol. 98, p. 104765, 2023, doi: 10.1016/j.tourman.2023.104765.
[42] D. Chakraborty and W. Biswas, “Going green with green HRM practices – A strategic initiative for reinvigorating performance optimization in companies,” Prabandhan Indian J. Manag., vol. 13, no. 10–11, pp. 8–26, 2020, doi: 10.17010/pijom/2020/v13i10-11/156006.
[43] A. Elias, K. Sanders, and J. Hu, “The sustainable human resource practices and employee outcomes link: An HR process lens,” Sustainability, vol. 15, no. 13, p. 10124, 2023, doi: 10.3390/su151310124.
[44] A. O. Ojo, C. N. L. Tan, and M. Alias, “Linking green HRM practices to environmental performance through pro-environment behaviour in the information technology sector,” Soc. Responsib. J., vol. 18, no. 1, pp. 1–18, 2022, doi: 10.1108/SRJ-12-2019-0403.
[45] D. Palupiningtyas, “Green human resource management: A comprehensive analysis of practices, impacts, and future directions,” Proceeding Int. Conf. Digit. Adv. Tour. Manag. Technol., vol. 1, 2023.
[46] D. Palupiningtyas, R. Mulatsih, and A. S. Sumantri, “The role of green HRM in talent management development to improve employee performance in hospitality companies.,” Int. J. Econ. Manag. Res., vol. 3, 2024.
