Green human resource management and employee competence as drivers of sustainability performance

Abstract

The transportation sector significantly influences energy utilisation and carbon dioxide emissions; therefore, sustainable transformation is increasingly important for advancing energy efficiency and reducing emissions in Indonesia (Fitriana et al., 2023). Green human resource management (GHRM) and employee competencies are considered strategic factors in enhancing sustainability performance, predominantly through the adoption of green technological innovations that strengthen environmental friendliness (Zihan & Makhbul, 2024). This study examines the impact of GHRM and employee competence on sustainability performance in Indonesia’s transportation sector, with green technological innovation as a mediator. Using an explanatory quantitative approach with purposive sampling, 350 respondents from Indonesia’s transportation sector were involved. The data were analysed using partial least squares structural equation modelling (PLS-SEM). The results demonstrate that both GHRM and employee competency positively and significantly contribute to sustainability performance. In addition, green technology innovations have been shown to mediate the relationship between GHRM, employee competence, and sustainability performance. This study contributes to the development of sustainability literacy by integrating the ability-motivation-opportunity (AMO) framework, employee competencies, and green technology innovations within the transportation sector. This study has implications for companies seeking to develop GHRM practices, strengthen employee competencies, and accelerate the adoption of low-carbon technologies.