The Impact of Green Human Resource Management on Sustainability Performance in UAE Manufacturing Firms

Abstract

This study examines the effect of Green Human Resource Management (GHRM) practices on Sustainability Performance in UAE manufacturing firms. Drawing on the Resource-Based View, the study argues that environmentally aligned human resource practices can function as internal organisational capabilities that enhance environmental, economic, and social outcomes. Specifically, the study investigates the direct effects of Green Hiring, Green Training and Involvement, and Green Performance Management and Compensation on Sustainability Performance. Data were collected through a structured questionnaire from 306 managerial-level respondents in UAE manufacturing firms and analysed using partial least squares structural equation modelling (PLS-SEM). The findings reveal that all three GHRM dimensions have positive and significant effects on Sustainability Performance. Green Hiring showed the strongest direct effect, indicating that recruiting employees with environmental awareness and sustainability-oriented values is a critical foundation for sustainable organisational outcomes. Green Training and Involvement also contributed significantly by enhancing employees’ environmental knowledge and participation in sustainability initiatives. In addition, Green Performance Management and Compensation positively influenced Sustainability Performance by aligning employee evaluation and rewards with environmental objectives. The model explained 73.3% of the variance in Sustainability Performance and demonstrated strong predictive relevance. The study contributes to the GHRM and sustainability literature by providing empirical evidence from the underexplored UAE manufacturing context. Practically, the findings suggest that manufacturing firms can improve sustainability performance by embedding environmental objectives into recruitment, training, employee involvement, performance appraisal, and compensation systems.