Digitalization as a Mediator Between Green Human Resource Management and Sustainable Performance in SMEs

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Digitalization as a Mediator Between Green Human Resource Management and Sustainable Performance in SMEs

Iwan PerwiraHernitaAprizalNovita Evi AntiAldio Mukhlas Rizky
July 2026
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This study examines the mediating role of digitalization in the relationship between Green Human Resource Management (GHRM) and sustainable performance among small and medium-sized enterprises (SMEs). While previous studies have emphasized the contribution of GHRM to organizational and environmental outcomes, the mechanisms through which GHRM is translated into sustainable performance remain insufficiently explained, particularly in SMEs facing resource and technological constraints. Drawing on the Resource-Based View (RBV) and dynamic capability theory, this study conceptualizes GHRM as a strategic organizational resource and digitalization as a dynamic capability that enables the effective deployment of this resource. A quantitative research design was employed using survey data from 180 SME owners and managers, which were analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that GHRM has a positive and significant effect on digitalization, and digitalization has a strong positive effect on sustainable performance. However, the direct effect of GHRM on sustainable performance is not statistically significant. These results indicate that digitalization functions as a critical mediating mechanism through which GHRM contributes to sustainable performance. The study advances the
literature by demonstrating that GHRM alone may be insufficient to enhance sustainability outcomes
unless supported by digital capabilities. Practically, the findings suggest that SMEs should align green
human resource practices with digital transformation initiatives to strengthen their economic,
environmental, and social performance.