Advancing Sustainable Workforce Performance: Integrating AI-Driven HR Transformation Within the Green Economy Framework for SMEs
Abstract
This study investigates the intersection of Green Human Resource Management (GHRM) practices and artificial intelligence (AI) adoption in improving workforce performance within Asian Small and Medium Enterprises (SMEs). Employing a mixed-methods approach with an explanatory sequential design, the research collected quantitative data from 500 SMEs across Indonesia, Malaysia, Thailand, Vietnam, and the Philippines through structured surveys, complemented by qualitative insights from 25 in-depth interviews. Structural Equation Modeling (SEM) analysis demonstrates that both GHRM initiatives and AI adoption independently enhance workforce performance, while their combined implementation produces a significant synergistic effect. Additionally, employees' green competencies partially mediate the relationship between GHRM and workforce outcomes, whereas organizational dynamic capabilities moderate the effectiveness of GHRM-AI integration. The qualitative findings identify four mechanisms that underpin this synergy: personalization of green HR practices, real-time tracking of pro-environmental behaviors, development of green talent, and transformation of organizational culture. This research contributes to the literature by offering an integrative framework that bridges environmental sustainability and digital HR transformation, providing actionable strategies for SMEs to achieve sustainable workforce development in the digital era.
References
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[9] G. Tang, Y. Chen, Y. Jiang, P. Paillé, and J. Jia, “Green human resource management practices: Scale development and validity,” Asia Pacific J. Hum. Resour., vol. 56, no. 1, pp. 31–55, 2018, doi: 10.1111/1744-7941.12147.
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[11] 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, 2023, doi: 10.4102/sajhrm.v23i0.2886.
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[15] S. Srivastava, A. Acharya, and M. Gupta, “Transforming human resource management through artificial intelligence: An empirical investigation in an emerging economy,” J. Enterp. Inf. Manag., vol. 35, no. 6, pp. 1569–1590, 2022, doi: 10.1108/JEIM-05-2021-0219.
[16] J. Qu, S. Qian, and J. Zeng, “Green or nongreen AI? Examining the environmental impacts of AI-driven smart city initiatives,” J. Urban Manag., vol. 11, no. 3, pp. 319–331, 2022, doi: 10.1016/j.jum.2022.07.001.
[17] H. K. S. Lam and M. M. S. Law, “Examining the role of corporate sustainability in relationship between corporate governance and financial performance: A systematic literature review,” Int. J. Manag. Rev., vol. 21, no. 4, pp. 413–432, 2019, doi: 10.1111/ijmr.12179.
[18] A. A. Zaid, A. A. M. Jaaron, and A. T. Bon, “The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study,” J. Clean. Prod., vol. 204, pp. 965–979, 2018, doi: 10.1016/j.jclepro.2018.09.062.
[19] S. Strohmeier, “Digital human resource management: A conceptual clarification,” Ger. J. Hum. Resour. Manag., vol. 34, no. 3, pp. 345–365, 2020, doi: 10.1177/2397002220921131.
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[21] P. Tambe, P. Cappelli, and V. Yakubovich, “Artificial intelligence in human resources management: Challenges and a path forward,” Calif. Manage. Rev., vol. 61, no. 4, pp. 15–42, 2019, doi: 10.1177/0008125619867910.
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[28] S. K. Mousa and M. Othman, “The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework,” J. Clean. Prod., vol. 243, p. 118595, 2020, doi: 10.1016/j.jclepro.2019.118595.
[29] S. K. Singh, M. Del Giudice, R. Chierici, and D. Graziano, “Green innovation and environmental performance: The role of green transformational leadership and green human resource management,” Technol. Forecast. Soc. Change, vol. 150, p. 119762, 2020, doi: 10.1016/j.techfore.2019.119762.
[30] A. A. Arulrajah and H. H. D. N. P. Opatha, “Analytical and theoretical perspectives on green human resource management: A simplified underpinning,” Int. Bus. Res., vol. 9, no. 12, pp. 153–164, 2016, doi: 10.5539/ibr.v9n12p153.
[31] S. Garg, S. Sinha, A. K. Kar, and M. Mani, “A review of machine learning applications in human resource management,” Int. J. Product. Perform. Manag., vol. 70, no. 4, pp. 947–980, 2021, doi: 10.1108/IJPPM-08-2019-0400.
[32] N. Anwar, N. H. Nik Mahmood, M. Y. Yusliza, T. Ramayah, J. Noor Faezah, and W. Khalid, “Green Human Resource Management for organisational citizenship behaviour towards the environment and environmental performance on a university campus.,” J. Clean. Prod., vol. 295, 2021.
[33] S. Ahmad, S. Wasim, S. Irfan, S. Gogoi, A. Srivastava, and Z. Farheen, “Qualitative v/s. quantitative research—A summarized review,” J. Evid. Based Med. Healthc., vol. 9, no. 3, pp. 1–12, 2022, doi: 10.18410/jebmh/2022/285.
[34] S. M. Obeidat, A. A. Al Bakri, and S. Elbanna, “Leveraging ‘green’ human resource practices to enable environmental and organizational performance: Evidence from the Qatari oil and gas industry,” J. Bus. Ethics, vol. 164, no. 2, pp. 371–388, 2020, doi: 10.1007/s10551-018-4075-z.
[35] 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.
[36] R. W. Brislin, W. J. Lonner, and R. M. Thorndike, Cross-cultural research methods. Routledge, 2016. doi: 10.4324/9781315126418.
[37] V. Braun and V. Clarke, “Reflecting on reflexive thematic analysis,” Qual. Res. Sport. Exerc. Heal., vol. 11, no. 4, pp. 589–597, 2019, doi: 10.1080/2159676X.2019.1628806.
[38] M. D. Fetters, L. A. Curry, and J. W. Creswell, “Achieving integration in mixed methods designs—principles and practices,” Health Serv. Res., vol. 48, no. 6, pp. 2134–2156, 2019, doi: 10.1111/1475-6773.12117.
[39] P. K. Muisyo and S. Qin, “The effect of green HRM practices on green competitive advantage of manufacturing firms,” J. Manuf. Technol. Manag., vol. 32, no. 7, pp. 1306–1329, 2021, doi: 10.1108/JMTM-11-2020-0432.
[40] H. Wang, E. Demerouti, and P. Le Blanc, “Why and when green HRM induces green innovation: The mediating role of green work engagement and the moderating role of job autonomy,” Hum. Resour. Manag. J., vol. 32, no. 4, pp. 810–830, 2022, doi: 10.1111/1748-8583.12414.
[41] M. W. Ragas, R. Culp, and K. Hallahan, “Customized GHRM practices in SMEs: Benefits and local adaptation in Asian contexts,” [Nama J. Tidak Dicantumkan], 2021.
[42] J. Meijerink, M. Boons, A. Keegan, and J. Marler, “Algorithmic human resource management: Synthesizing developments and cross-disciplinary insights on digital HRM,” Int. J. Hum. Resour. Manag., vol. 32, no. 12, pp. 2545–2562, 2021, doi: 10.1080/09585192.2021.1925326.
[43] Z. Khan and F. L. Cooke, “Human resource management and artificial intelligence: Current and future implications for multinational enterprises,” Int. J. Hum. Resour. Manag., vol. 33, no. 20, pp. 4085–4114, 2022, doi: 10.1080/09585192.2021.2021220.
[44] C. T. Kulik and S. L. Veksberg, “HR and the AI invasion: A research agenda to help practitioners manage this new frontier,” Hum. Resour. Manag. J., vol. 31, no. 4, pp. 971–988, 2021, doi: 10.1111/1748-8583.12363.
[45] C. J. C. Jabbour and D. W. S. Renwick, “Organizations as catalysts of sustainable development: Greening the workforce for responsible management in the 21st century,” Int. J. Manpow., vol. 41, no. 7, pp. 881–885, 2020, doi: 10.1108/IJM-11-2020-457.
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2025-07-29
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