The Jordanian banking sector is facing rapid technological advancements and evolving business challenges, prompting the need for innovative and sustainable management practices. Green Human Resource Management (GHRM) has emerged as a strategic approach to enhance organizational performance through environmentally responsible and ethical practices. Supported by strong top management commitment, GHRM enables banks to achieve competitive advantage, operational efficiency, and long-term sustainability in a dynamic business environment.
Objective
This study aims to explore the correlations between green HRM, and competitive advantage through the mediating role of competitive advantage in Jordanian commercial banking sector.
Methodology
The study’s focus is on HR managers and supervisors in Jordanian commercial banks. Through stratified random sampling, 400 respondents from various banks were chosen, and self-administered questionnaires were distributed via email, 370 were considered suitable for analysis. The study utilized Partial Least Squares Structural Equation Modeling (PLS-SEM) with Smart PLS 3 to examine the interconnectedness of the key constructs.
Findings
Results indicated significant relationships between green human resource management, and competitive advantage. Furthermore, the study further identified top management support as a moderating factor in the relationship between green human resource management and competitive advantage.
Implications
Simultaneously, policymakers and regulators, intrigued by the findings, are increasingly invested in discovering innovative methods to enhance the environmental sustainability of services in developing countries. The research’s insights into green HRM practices offer valuable input for policymakers seeking effective strategies within diverse economic and cultural contexts.
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