Green HRM and sustainable entrepreneurial performance in Indian SMEs: An RBV-AMO perspective on the mediating roles of ability and motivation

Abstract

The present study examines the impact of Green Human Resource Management (GHRM) practices on Sustainable Entrepreneurial Performance (SEP) of tourism and hospitality Small and Medium Scale Enterprises (SMEs) in Uttarakhand, India. The study examines the role of green ability, green motivation, and green opportunity as mediators in the process of how GHRM influences sustainable entrepreneurial outcomes, based on the resource-based view (RBV) and the ability–motivation–opportunity (AMO) framework. Data were collected from 323 owners and managers of tourism and hospitality SMEs and analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM). GHRM was operationalized as a higher-order formative construct of green recruitment and selection, green training and development, green performance appraisal, and green rewards and compensation. The results indicate that GHRM has a direct significant positive impact on the sustainable entrepreneurial performance. Furthermore, the results show that green ability and green motivation are significant mediators between GHRM and SEP, indicating that employees' environmental competencies and commitment are important mechanisms that drive the link between GHRM and enhancing SEP. However, green opportunity does not significantly mediate the relationship, indicating that participation-oriented practices alone may be insufficient to improve performance within the SME context.  By integrating RBV and AMO perspectives, this study contributes to the GHRM literature by providing a multi-level explanation of how green HR practices translate into sustainable entrepreneurial outcomes. The findings highlight the dominant roles of ability and motivation mechanisms while demonstrating that the effectiveness of opportunity-enhancing practices may be contingent upon organizational context within tourism and hospitality SMEs in emerging economies.