Impact of green human resource management and internal green supply chain management practices on operational performance: An empirical investigation of manufacturing sector

Abstract

Abstract The increasing environmental impact has triggered a global shift towards eco‐friendly business strategies. This study examines the impact of green human resource management (GHRM) and internal green supply chain management (IGSCM) on operational performance within the Ethiopian manufacturing sector. Survey data from 219 large and medium‐sized companies in the leather, textiles, agro processing, and cement industries were analysed using partial least squares structural equation modelling. The findings demonstrate that IGSCM practises, such as eco‐design and internal environmental management, have a positive impact on operational performance. GHRM encourages a culture that supports these practises. Mediation analysis reveals that GHRM indirectly enhances operational performance through IGSCM practises. This study contributes to the existing literature on sustainable HR and supply chain management by emphasising the importance of integrating environmental considerations into HR and supply chain strategies to enhance operational outcomes. Policymakers are encouraged to utilise these findings to develop frameworks that promote environmentally sustainable business practises.