Determinants Of Sustainable Performance In Small And Medium Industries: The Role Of Green Human Resource Management Through Green Operational Dimension

Abstract

This study investigates the determinants of sustainable performance in SMIs operating in Jambi Province, Indonesia, with a specific focus on the role of Green Human Resource Management (GHRM) mediated by green operational dimensions—Green Input (GI), Green Process (GP), and Green Product (GPro). The research used a quantitative-explanatory design with Structural Equation Modeling—Partial Least Squares. The Study Population The study population comprises all managers or owners of SMIs actively registered with the Jambi Provincial Department of Industry and Trade in 2022, totalling 12,847 SMI units distributed across six regencies/cities: Jambi, Muaro Jambi, Batanghari, Bungo, and Kerinci Regency. SMIs in Jambi Province operate across various sectors, including rubber processing, wood products, batik crafts, food processing, and creative industries. Sample is collected from 224 SMI managers and using stratified purposive sampling. Findings extend GHRM theory to the Indonesian SMI context and offer actionable guidance for policymakers and practitioners seeking to embed green practices into human capital management. Green value chain dimensions  simultaneously as mediators in the GHRM–Sustainable Performance relationship within a single integrated model. Green human capital capabilities are most effective in transforming procurement and resource utilisation behaviour at the initial stage of the value chain.