Introduction
The Asia-Pacific electronics manufacturing sector faces intensified global competition and growing environmental concerns, necessitating a commitment to green innovation. Green innovation—the development and implementation of environmentally friendly products, processes, and technologies—is crucial for economic growth and minimizing environmental impact. It's vital for competitiveness, particularly in meeting strict environmental standards in major markets. This study focuses on the role of strategic human resource management (SHRM) in fostering green innovation and enhancing environmental performance within this sector, specifically examining the mediating role of self-efficacy and the moderating role of person-organization fit. The study acknowledges the significant impact of employees' environmentally friendly behaviors on organizational production activities and the often-incomplete understanding of these behaviors by managers. It investigates how SHRM, by providing employees with psychological resources (through socialization, including relationship-focused interactions, cognitive resources for learning, and affective resources for decision-making) and fostering social exchange, impacts employees' adaptation, job satisfaction, and turnover. This study aims to analyze the effects of these factors on green innovation within the SHRM framework, enriching understanding of sustainable workplace practices and building on existing literature by focusing on the less understood mediators and moderators of the SHRM-green innovation relationship.
Literature Review
The study grounds its analysis in social exchange theory (SET) and the intellectual capital theoretical framework. SET explains social behavior based on resource exchange, emphasizing reciprocity and mutual benefit. In this context, SET helps understand the exchange of resources between organizations and employees, influencing behaviors and attitudes towards green innovation. Providing resources (training, support, positive work environment) influences employees' green behaviors, leading to reciprocal behaviors beneficial to the organization (like green innovation). The literature review also explores strategic human resource management (SHRM), emphasizing its shift from a limited operational focus to a more integrated approach that aligns organizational goals with employees' capabilities. It discusses existing research linking effective management practices to employee motivation and innovation but highlights a scarcity of research on the relationship between SHRM and green innovation. The concept of green human resource management (GHRM), an extension of SHRM integrating environmental considerations, is introduced, supported by prior studies indicating its impact on green creativity and environmental performance. The literature review further emphasizes the importance of intellectual capital (human, structural, and social) as a driver of innovation, and the roles of green innovation and environmental performance. The mediating role of self-efficacy (an individual's self-assessment of capabilities) and the moderating role of person-organization fit (the compatibility between individual traits and the organizational environment) are also explored. The study’s hypotheses are based on this comprehensive literature review.
Methodology
The study utilized a survey methodology, preceded by a pilot study to evaluate survey questions and timing. The main study involved a purposive sampling strategy targeting employees in the electronics manufacturing industry in coastal regions of mainland China, specifically product designers and production staff from companies exporting to environmentally regulated markets like the US and Europe. The survey collected data between January and March 2021, with 487 valid responses from various departments (R&D, Logistics, Business, and others), exhibiting a gender distribution of 36% male and 64% female with a median age of 38.25 and median length of service of 5.44 years. The survey measured SHRM using a multi-item scale based on seven practice aspects (empowerment, staffing, training, performance appraisal, promotion, employment security, and compensation). Self-efficacy was assessed using the Occupational Self-Efficacy Scale, adapted by Alisic and Wiese (2020). Green innovation was operationalized as the successful implementation of creative ideas contributing to environmental sustainability, measured using six adapted items from Rego et al. (2007) and Barczak et al. (2010). Person-organization fit was measured using three items adapted from Cable and DeRue (2002), and employees' environmental performance was assessed using four items from Judge and Douglas (1998). A Likert scale (1-5) was used for all measures. Data analysis involved data cleaning, descriptive statistics, correlation analysis, and partial least-squares structural equation modeling (PLS-SEM) using SmartPLS 4.0 to test the hypotheses. PLS-SEM was chosen due to its ability to handle complex models and its robustness. The analysis comprised assessment of the measurement model (reliability and validity) and the structural model (hypothesis testing). Both first-order and second-order models were compared, with the first-order model demonstrating a better fit.
Key Findings
The measurement model exhibited good reliability and validity, with Cronbach's alpha values exceeding 0.7, composite reliability coefficients above 0.7, factor loadings above 0.7, and AVE values above 0.5. Discriminant validity was confirmed using HTMT values below 0.9. The first-order model, which did not break down SHRM into its constituent elements, provided a better fit than the second-order model according to SRMR, d_ULS, and d_G indices. The structural model, analyzed using PLS-SEM, demonstrated significant relationships between the variables. H1 (positive relationship between SHRM and green innovation) was supported (β=0.312, p<0.001). H2 (positive relationship between green innovation and employees' environmental performance) was also supported (β=0.275, p<0.001). H3 (self-efficacy mediates the relationship between SHRM and green innovation) was confirmed, with a significant indirect effect (β=0.153, p<0.001). Finally, H4 (person-organization fit moderates the relationship between green innovation and environmental performance) was supported (β=0.126, p<0.05). The R2 values for self-efficacy (0.384), green innovation (0.583), and environmental performance (0.492) all exceeded 0.3. Fit indices for the structural model were RMSEA = 0.043, SRMR = 0.047, and NFI = 0.973. A plot was created to illustrate the moderating effect of person-organization fit, indicating that the relationship between green innovation and environmental performance is stronger when person-organization fit is high.
Discussion
The findings reaffirm the importance of SHRM in fostering green innovation and improving environmental performance, aligning with and extending prior research. The mediating role of self-efficacy underscores the importance of building employee confidence and skills in green innovation initiatives. The positive correlation between green innovation and employee environmental performance highlights the crucial role of human capital in driving sustainable practices. The moderating effect of person-organization fit emphasizes the significance of aligning individual and organizational values to maximize the impact of green innovation efforts on environmental performance. These findings are particularly relevant to the Chinese context, offering specific insights for organizations operating in this region but with limitations in terms of generalizability to other contexts within the Asia-Pacific region due to varying regional characteristics. The study enhances our understanding of SHRM’s application to green innovation and its multifaceted nature, including implementation quality and integration with business strategy.
Conclusion
This study contributes to the understanding of the interplay between SHRM, green innovation, and environmental performance. It emphasizes the mediating role of self-efficacy and the moderating role of person-organization fit. The findings are relevant to both practitioners and researchers. Future research could investigate the causal relationships between SHRM, self-efficacy, social support and employee outcomes, broaden the geographical and industrial scope of the study, employ qualitative methods to explore cultural nuances in the Asia-Pacific region, and adopt a longitudinal perspective to capture the dynamic nature of green innovation. The study highlights the importance of aligning SHRM practices with green innovation goals and fostering a strong person-organization fit.
Limitations
The study's limitations include its cross-sectional design, limiting causal inferences and the generalizability to other contexts. The focus on mainland China's electronics manufacturing sector might not fully represent other industries or geographical regions within the Asia-Pacific. The lack of qualitative data to explore cultural nuances presents a further limitation. The study's findings reflect a specific time period, not accounting for rapid technological advancements and regulatory changes in the green innovation landscape. Future studies should address these limitations by using longitudinal designs, broadening the sample scope, incorporating qualitative data, and considering dynamic changes in the environment.
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