The effect of green HRM practices on green competitive advantage of manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paul Kivinda Muisyo ◽  
Su Qin ◽  
Thu Hau Ho ◽  
Mercy Muthoni Julius

PurposeThe rising public concern for the natural environment is compelling business entities to revise their business models toward green management. Most manufacturing firms have realized that green innovation is a critical factor that drives their success. However, green human resource scholars have overlooked this research line despite the potential contribution it can advance in green management scholarship. This paper empirically models the extent to which green innovation culture (GIC) moderates the relationship between green human resource management (GHRM) and green competitive advantage (GCA). The paper has two-fold objectives. First, to investigate the effects of GHRM and GIC on the firm's GCA and second, to model the extent to which GIC moderates the link between GHRM practices and GCA of manufacturing firms in Zhejiang Province of China.Design/methodology/approachData were collected from 324 Chinese employees from the manufacturing sector. The authors captured data from all levels of the organization. The authors made three models equations: two direct and one interactive. The authors then applied structural equation modeling (SEM) using AMOS 24 to test the study models and hypothesis.FindingsThe findings suggest that GHRM practices, which include recruitment and selection, training and development (green abilities); performance management and reward and compensation (green motivation); and employee involvement and leadership (green opportunities) have a significant positive effect on the firms GCA. The findings also indicate that firms that GIC, which include green product innovation (GPDI) and green process innovation (GPRI), promotes the firm's GCA. The paper further reveals that firms that combine GHRM and GIC attain higher GIC than those which practice GHRM only.Originality/valueThis paper draws a roadmap on how the top management in manufacturing firms can drive the firm's operations toward a higher GCA. It's the pioneer paper to suggest the combination of GHRM and GCI for enhanced GCA.

2019 ◽  
Vol 30 (4) ◽  
pp. 666-683 ◽  
Author(s):  
Chao-Hung Wang

PurposeGrowing public concern about the natural environment is rapidly transforming the competitive landscape and forcing firms to adopt green innovation strategies. Many manufacturing firms have recognized the concept of green innovation, though there has been relatively little research on considerations of its driver and effect. The purpose of this paper is to empirically develop and test a theoretical model that analyzes how organizational green culture (OGC) influences green performance and competitive advantage. Specifically, this model explains how green innovation mediates these relationships.Design/methodology/approachThe paper collected data from 327 manufacturing firms of different industry sectors in Taiwan. Structural equation modeling with AMOS 11 software was applied to analyze the data. Data on specific environmental innovation issues at the firm level are not usually available from published sources, so this paper uses a questionnaire. The questionnaire is developed based on the literature.FindingsThe findings of this paper suggest that OGC significantly predicted green performance and competitive advantage, respectively. Moreover, the results show that both green innovation completely mediates between OGC and green performance, and that it has a partially mediating effect on the relationship between organization green culture and competitive advantage under environmental pressure.Research limitations/implicationsThis study has some limitations that point to the future lines of research. Perhaps, the biggest limitation of the study is that the data are from a single country, which may hamper generalization. This study is also limited in that it is based on cross-sectional data. A final limitation is the origin of organizational culture vs employee attitude culture.Originality/valueThis study contributes to the existing literature on organizational culture and innovation by considering green environmental concerns, which have not been empirically explored. This study also offers a unique theoretical argument describing the relationships by considering the mediating effect of green innovation strategy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.


2019 ◽  
Vol 16 (5) ◽  
pp. 659-682 ◽  
Author(s):  
Debarun Chakraborty ◽  
Wendrila Biswas

Purpose Today, the employees stand firm as an integral part of the organization and are a precious asset. They are willing to learn, accept challenges and strive hard to deliver their level best. The role of the employees has become pronounced and significant, and it is no more conventional. They are now taking up responsibilities in strategic planning and development of the organization. Thus, HR department plays a profuse role in planning for the human resource of the firm to optimize the utilization of their potentials that would help support and meet the business as well as strategic goal of the firm. These HR planning programs ensure managing people within a planned framework and make them develop their performance that becomes a source of sustained competitive advantage for the firm. The paper aims to discuss these issues. Design/methodology/approach A descriptive research has been conducted with cross-sectional survey through a formalized questionnaire. Multistage sampling has been used in the study. Primary data have been collected from different manufacturing industries of India. Exploratory factor analysis and confirmatory factor analysis have been conducted on the hypothesized research model. Structural equation modeling has been done to specify the relation between the measured and latent variables. Findings The HR planning programs, namely, staffing plan and succession plan, yield a better result in addressing the strategic goal of the company. Succession plan, staffing plan and talent management strategies augment the efficacious performance of the firm. Effectual performance aids in gaining a competitive advantage for the firm in a substantial way. Job analysis and design have no impact in achieving the strategic intent of the organization. Originality/value The study gives a comprehensive scenario of the HR planning programs that can help the organization to meet and uphold their strategic goals. The study provides a model that can solidify and bind the organization toward securing organizational intent and leading a steadfast business process in this dynamic competitive marketplace.


2015 ◽  
Vol 16 (2) ◽  
pp. 364-389 ◽  
Author(s):  
Göran Roos ◽  
Allan O'Connor

Purpose – The purpose of this paper is to report on an industry policy implementation case involving around 30 manufacturing firms, where the intellectual capital (IC) lens, and especially the intellectual capital navigator (ICN) approach, was found to be very useful for evaluating alternative servitisation strategies. Servitisation is a form of business model innovation and as such involves restructuring the firm’s resource deployment system including its IC resources. Design/methodology/approach – The ICN was one of several methods and themes used by a sample of manufacturing firms during a 12 month period. Data capture were through video filming, observation, and formal interviewing during and after the interventions. Findings – The ICN is considered to be the third most valuable theme in a strategic and operational servitisation programme for manufacturing firms, primarily in the domain of effectiveness evaluation of alternative resource deployment strategies and as such should be one of the key dimensions in a business model template for manufacturing firms that aim to servitize. This research also illustrates the usefulness of the intellectual capital lens in the policy implementation process. Research limitations/implications – The findings of this study is limited to the servitization process of SME manufacturing firms in an Anglo-Saxon operating environment which very rapidly have gone from low to high cost. Originality/value – The development of service-oriented business models for manufacturing firms suffers due to traditional business model frameworks not having a high relevance for servitising manufacturing firm. Consequently it is important to understand the potential contribution that the IC lens through the ICN can make in the servitisation process.


2020 ◽  
Vol 33 (2) ◽  
pp. 201-216
Author(s):  
Mauricius Munhoz de Medeiros ◽  
Antonio Carlos Gastaud Maçada ◽  
José Carlos da Silva Freitas Junior

Purpose In the age of analytical competition, business models and gaining competitive advantage (CA) are directly related to organizations’ data strategy. Incorporating data strategy enables the organization to unlock the potential value of big data analytics. Therefore, this study aims to analyze how data strategy affects the achievement of CA. Design/methodology/approach Through survey research, data were collected from 103 respondents. Model testing and evaluation, partial least squares structural equation modeling and analysis of mediating effects were performed. Findings The supported hypotheses confirm the direct effects between the defensive and offensive positioning of the data strategy on CA, as well as the mediating effect of the offensive data strategy (ODS). Originality/value This study is groundbreaking in terms of empirically analyzing how defensive data strategy (DDS) or ODS affects CA. In conclusion, to extract value from their data, organizations need to establish their data strategy based on their strategic positioning, the potential of their resources and their analytical capabilities. Research implications The defensive and offensive positioning of the data strategy are closely related to each other and both, in isolation, directly and positively, impact CA. It is also noted that the role of defensive positioning is to strengthen the offensive positioning of the data strategy, which in turn, plays a central role in achieving CA. Practical implications The results can assist managers in effectively incorporating analytical resources and capabilities, as well as helping them understand the dynamics and advantages of data strategy, so they can drive strategic objectives according to the organization’s positioning. Originality/value This study is groundbreaking in terms of empirically analyzing how DDS or ODS affects CA. In conclusion, to extract value from their data, organizations need to establish their data strategy based on their strategic positioning, the potential of their resources and their analytical capabilities.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hashim Zameer ◽  
Ying Wang ◽  
Humaira Yasmeen ◽  
Shujaat Mubarak

PurposeThe purpose of this paper is to investigate the role of business analytics and environmental orientation toward green innovation and green competitive advantage. In addition, the study aims to explore the mediating role of green innovation in the impact of business analytics and environmental orientation on green competitive advantage.Design/methodology/approachBased upon the theoretical analysis of existing literature, several hypotheses have been developed. Data was gathered using a survey method. The survey was conducted using online portal, 388 valid responses have been processed using SPSS 23.0 and AMOS 23.0 for empirical analysis. Two steps were used, first reliability and validity have been measured. Following this, the authors employed structural equation modeling technique to test hypothetical relationships.FindingsThe results from the authors’ empirical analysis indicate that business analytics and environmental orientation have a pivotal role toward green innovation as well as green competitive advantage. If the results are seen comparatively, then it can be indicated that the role of business analytics is more powerful compared with the environmental orientation. Although environmental orientation is a key factor of green innovation, but its direct role toward green competitive advantage is not so strong. Similarly, to check the other mechanisms, the role of green innovation as a mediator was explored. Empirical findings have established the mediating role of green innovation in the influence of business analytics and environmental orientation on green competitive advantage. Thus, the results confirm a mechanism of green innovation in the impact of business analytics and environmental orientation on green competitive advantage.Practical implicationsThe study captures the attention of decision-makers and highlights that business leaders need to emphasize on business analytics while making managerial decisions related to green innovation and green competitive advantage.Originality/valueFor the first time, this study explored the role of business analytics and environmental orientation together toward green innovation and green competitive advantage. The study adds value to the existing literature and opens new avenues for scholarly research in the area of managerial decision-making.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia Ul Haq ◽  
Minhao Gu ◽  
Baofeng Huo

Purpose Despite the importance, no study exists which investigates the role of human resource (HR) in supply chain (SC) learning. This study aims to investigate the effects of high-performance human resource management (HRM) practices on different types of the SC learning (i.e. supplier, customer and internal learning) and innovation performance. Design/methodology/approach This study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that empowerment improves all three dimensions of SC learning, whereas training improves supplier and internal learning and teamwork is not related to any dimension of SC learning. These HRM practices also interactively influence SC learning dimensions. Moreover, customer and internal learning are directly related to innovation performance, while supplier leaning has a complementary effect with internal leaning but a substitutional effect with customer learning to innovation performance. Research limitations/implications This study only selects training, teamwork and empowerment to manifest high-performance HRM practices. The impacts of high-performance HRM practices on different dimensions of SC learning and innovation performance are tested empirically with cross sectional-data collected only from manufacturing firms in China. Practical implications The findings suggest that managers can promote SC learning through the empowerment and training of their employees. Moreover, managers should place more emphasis on customer and internal learning to improve innovation performance. Originality/value Combining HRM and supply chain management (SCM) fields, this study offers a new framework to understand linkages between high-performance HRM practices, SC learning and innovation performance by using an empirical method.


2019 ◽  
Vol 29 (2) ◽  
pp. 125-149 ◽  
Author(s):  
Hamzah Elrehail ◽  
Ibrahim Harazneh ◽  
Mohammad Abuhjeeleh ◽  
Amro Alzghoul ◽  
Sakher Alnajdawi ◽  
...  

Purpose The purpose of this paper is to explore the impact of human resource (HR) management practices on achieving competitive advantage through studying the mediating role of employee satisfaction in the context of five-star hotels in Northern Cyprus. Design/methodology/approach To produce numeric data as well as to test the hypothesis, the researchers employed structural equation modeling and AMOS. The testing included (n=439) questionnaires. The model suggested by the authors examined the tourism sector, and in particular, five-star hotels located in Northern Cyprus. Findings The main research findings revealed that HR practices had a significant effect on competitive advantage. By comparison, the research findings revealed that the mediator variable had no effect on achieving competitive advantage for five-star hotels in Northern Cyprus. Originality/value This study demonstrates originality by responding to the recommendations of prior studies conducted on HR in Northern Cyprus Island. This makes a theoretical contribution to the field, since only Turkey recognizes Northern Cyprus, which makes conducting research on this country a challenge for researchers worldwide. Based on this study’s outcomes, this paper discusses its theoretical and practical implications, as well as recommendations for future research.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarat Kumar Jena ◽  
Abhijeet Ghadge

PurposeHuman resource management (HRM) is struggling to cope with the increasingly volatile demand for skilled resources in the logistics and supply chain sector. Thus, this study discovers the possible integration of HRM and supply chain management (SCM) practices for improved supply chain performance. The purpose of this study is to explore the effect of intra HRM–SCM and joint HRM–SCM decisions on the performance of the supply chain.Design/methodology/approachAn intra HRM–SCM and joint HRM–SCM model is developed following an empirical study. Survey data collected from 109 supply chain managers from Indian logistics firms are used to test the developed hypotheses. Structural equation modeling is used to analyze and validate the model.FindingsThe results suggest that supply chain performance is significantly influenced by joint HRM–SCM, compared to intra HRM–SCM practices, especially under volatile demand environments. Training and development, recruitment and selection, and performance management affect joint HRM–SCM significantly compared to the other three factors identified. Moreover, HRM and SCM show strong correlation and mutual support in identifying and fulfilling the demand of the logistics and supply chain sector.Practical implicationsWith a growing trend toward globalization and digitalization, a joint HRM–SCM model will help businesses make robust and informed decisions for improved supply chain performance.Originality/valueAn empirical relationship between joint HRM–SCM, intra HRM–SCM, supply chain inhibitors and supply chain performance is established in this study. Although some part of this relationship may already exist, the study provides robust evidence to support this complex, collaborative relationship.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Faraz Mubarak ◽  
Suman Tiwari ◽  
Monika Petraite ◽  
Mobashar Mubarik ◽  
Raja Zuraidah Raja Mohd Rasi

PurposeThis study investigates the impact of Industry 4.0 technologies on green innovation performance. In this relationship, the mediating role of green innovation behavior is also studied. Moreover, open innovation is tested as a mediator between Industry 4.0 technologies and green innovation behavior.Design/methodology/approachA quantitative research method is adopted in which a structured questionnaire was used to collect data from 217 manufacturing firms of Malaysia. After collecting data, the partial least squares-structural equation modeling (PLS-SEM) technique is applied to analyze data and test the hypothesis of study.FindingsIt is found that Industry 4.0 positively impacts open innovation which leads to green innovation behavior. Also, the former lays positive impact on green innovation behavior which leads to improve green innovation performance.Research limitations/implicationsThe authors conclude that Industry 4.0 technologies can play an important role to improve green innovation performance of Malaysian manufacturing firms by managing open innovation for green innovation behavior which further improves the green innovation performance. In this context, it is recommended that strategists and policymakers should undertake the role of open innovation and Industry 4.0 technologies to promote environment-friendly innovations and to promote the green behavior in companies. The authors suggest hereby that firms should be given incentives to adopt and utilize Industry 4.0 technologies and collaborative innovation interactions – as they foster a climate for sustainable green innovations (which is also a key component to achieve competitive advantage) and a growing concern nowadays.Practical implicationsFirst of all the research contributes to achieving the broader of United Nations to promote sustainable innovation through green innovations. Moreover, the companies can also incorporate the findings and insights of this study while devising their policies to foster green innovations.Originality/valueThis research has done the novel contribution by bridging the gap between open innovation approach and sustainability fields while promoting green innovations in small and medium enterprises (SMEs). These two research fields are rarely studied in previous studies by focusing open innovation particularly. Hence, the authors suggest researchers to undertake these fields to further enhance the level of scholarship between innovation management and sustainability. Also, the authors recommend considering technological orientation and technological absorptive capacity of firms to improve green innovations. The current study has investigated the SMEs perspective in general irrespective to their sectoral differences, thus, for future researchers the authors suggest investigating the sector-wise comparison, i.e. electrical and electronics sector, chemical sector, etc.; or service and manufacturing sector differences.


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