Studying the role of corporate social responsibility, green HRM and green innovation to improve green performance of SMEs

Abstract

Purpose The purpose of this study is to find out the relationship between the corporate social responsibility (CSR) and green performance (GP) of Pakistani manufacturing SMEs. This study further explores the mediating roles of green human resource management (GHRM) and green innovation (GI) in the relationship between CSR and GP. Design/methodology/approach A survey method was used to collect data from manufacturing SMEs. Data were collected from 366 respondents working in higher positions and playing a decisive role in the organization. The collected data were analysed by applying structural equation modelling with the help of smart PLS. Findings The study shows that CSR (customers, society, employees) helps significantly improve a firm's GP. Furthermore, this study explores how GI (process, product) and GHRM (skills development, motivation and involvement) mediate the relationship between CSR and GP. Research limitations/implications This study is limited to manufacturing SMEs and a single developing country, Pakistan. However, this study will significantly contribute to the existing literature on GP and help manufacturing firms’ top management take steps to minimize carbon emissions and improve GP. Furthermore, this study will also provide valuable insights to government agencies in the Asian context to adjust their policies regarding the manufacturing sector to reduce pollution in the country. Originality/value As a pioneering study encompassing CSR, GHRM, GI and GP under one research paradigm in an emerging economy environment, the current research provides substantial additions to the literature on the impact of CSR on GP.