Green Human Resource Environmental and Organizational Performance

Leveraging “Green” Human Resource Practices to enable Environmental and Organizational Performance: Evidence from the Qatari Oil and Gas Industry

Abstract

Although the theoretically important role of green human resource management (HRM), relatively little research has been discovered so far about this role particularly in Oil and Gas industry. We contribute to fill this gap by developing and testing a set of hypotheses to provide a first attempt at analyzing the antecedents and outcomes of green HRM practices in the Qatari Oil and Gas industry. Data were collected from 144 managers and analyzed using Partial least squares (PLS). The analysis shows that both top management support and internal environmental orientation positively influence green HRM, which in turn has a significant positive impact on environmental performance. The results also provide evidence for the mediating effect of green HRM on the links between both top management support and internal environmental orientation, and environmental performance. Moreover, environmental performance is found to positively influence organizational performance. The implications of these results for theory and HRM practices in the Oil and Gas industry are taken into consideration.

This paper summarizes the most attractive solutions to ensuring oil sector sustainability, critically studying their likely advantages and shortcomings. A few novel approaches which have already been implemented are discussed, in addition to others still under testing or requiring further improvements.

Keywords: Green HRM, environmental orientation, environmental performance, organizational performance, Qatar, top management support

Abbreviation

HRM Human Resource Management

EMS Environmental Management System

Introduction

Environmental management has been a concern for many companies today (Guerci et al.,

2016). This has led companies to invest heavily in their environmental management systems (EMS) in order to improve their environmental performance and, eventually, enhance their reputation and overall performance (Wagner, 2013). With regard to such benefits, the literature suggests that the increased implementation of EMSs by companies, such as ISO 14001 certification, will lead to pollution preventions, waste minimization, and low environmental release (Paille et al., 2014), and hence it may assist in enhancing economic performance of companies (Abdel-Maksoud et al., 2016; Wehrmeyer, 1996).

From the environmental management perspective, scholars assert the close linkage between green Human Resource Management (HRM) and environmental performance (Paille et al., 2014; Renwick et al., 2013). Green HRM are usually defined as HRM work practices which facilitate proactive environmental management for the firm (O`Donohue and Torugsa, 2016). In their review on environmental management and HRM literature, Renwick et al., (2013) showed the need to integrate environmental management and HRM. Moreover, they identified a set of HRM practices that are emerging as one organizational response to environmental degradation. For example, in the selection process, companies concerned with environmental management often rely on green criteria to select job candidates and they recruit employees who are green aware. Also, they use green performance indicators in the performance appraisal process. The review finds considerable evidence of green HRM practices that promoted ability, motivation, and opportunity in addition to enhancing environmental performance. However, they claimed that studies on the impact of green HRM system, as a whole rather than individual practices, on either environmental outcomes or a wider organizational performance are rare.

Accordingly, considerable uncertainty remains regarding the role of green HRM in achieving environmental performance and improving organizational performance (Guerci et al., 2016). This suggests that our study is timely and has considerable empirical implications for green HRM practices. In this regard, the study has three main purposes. First, although contextual factors have been considered in previous research examining green practices, they haven`t been broadly considered in research about green HRM practices (e.g. Guerci et al., 2016). To contribute to address this gap, this study concentrates on two important organizational factors that serve as possible antecedents of adopting green HRM; these are support of top management and internal environmental orientation (hereafter-referred to as environmental orientation). As argued by Daily and Huang (2001), top management support can encourage the adoption of green HRM practices. This is especially important since there is no empirically verifiable work to show the validity of top management support as a likely factor that encourages the adoption of green-based HRM practices. Environmental orientation, which reflects the degree to which employees are committed to protect the natural environment (Paille et al. 2014), was proposed as a second determinant of green HRM. Both factors complement each other by showing support to green-based HRM practices at different levels in the firm, namely, employees and management. In particular, high levels of management support and environmental orientation is expected to lead to implementing effective green HRM within the company through, for example, placing more importance on environmental issues as well as attracting, developing, and retaining employees who are

‘environmental aware’.

Second, the study examines the mediating role of green HRM on the links between top management support and environmental orientation on one side and environmental performance on the other. Although scholars have addressed the important role of HRM practices in improving environmental performance over the last three decades (e.g. Hart, 1995; Jabbour and Santos, 2008; Paille et al. 2014), there are still calls for more empirical work on this role (e.g. Renwick et al. 2013). Moreover, to date, few empirical works have addressed the extent to which management support and environmental orientation enable organizations to improve their environmental performance through enhancing green HRM. As a response to these calls, we address a knowledge gap by studying the mediating role of green HRM plays in the link between both management support and environmental orientation, and environmental performance. It is important to note that the current study concentrate on “actual” rather than “intended” green HRM practices. Nishii and Wright (2008) identified intended HRM practices as practices formulated by HRM department, whereas the actual HRM practices are practices that are implemented at all levels by managers and employees. As recommended by Khilji and Wang (2006), this study targets managers at all levels to provide their views about implemented green HRM practices.

Thirdly, the study examines the link between environmental and organizational performance in the Qatari Oil and Gas sector where scarcity of studies do exist on both the country and the sector. The Oil and Gas sector in Qatar constituted the backbone of Qatari economy, which constituted more than 50% of Qatar`s GDP. The state-owned Qatar Petroleum (QP) controls all aspects of Qatar’s upstream and downstream oil and natural gas sectors, including exploration, production, transport, storage, marketing, and sale activities. Companies operating in this sector have been exposed to increased pressure to preserve the environment. For example, since one of the main four pillars of Qatar vision 2030 is environmental development, all companies in the sector are applying environmental management processes, mainly in the form of the ISO certificate 14001. To our knowledge, no studies examining the link between green HRM and environmental performance do exist in the GCC region which is another clear contribution of this study.

Rationale for Green HRM

In the modern day corporate world, there is a need to balance environmental, economic, and social performances as part of a responsibility to the society. Moreover, with the growing concern for green strategies in an effort to combat global warming, the increasing green awareness is sure to force companies and forms to shift towards green. As a result, practitioners, academicians, and political decision makers are increasing aware and paying attention to strategies and solutions that are adopted by firms to environmental management with the goal of improving a wide range of environmental performance (Wagner, 2013; Longoni, Luzzini & Guerci, 2016). A review of literature seems to draw the concussion that environmental management strategies are to be deployed in a cross-functional approach, but with a specific focus to independent functional systems.

For independent firms, adoption and utilization of green strategies including in their human resource management is not only a way of promoting the company to a broad spectrum of environmental systems, but also an avenue for promoting their brand and profitability. According to Nejati, Rabiei & Jabbour (2017), adoption of green environmental management systems in HRM promote an environmental conscious culture, and more importantly when the top management of the organization is involved. Research interviewing human resource managers in Italian companies draws the conclusion that green human resource management has an effect on both the organizations performance financially and environmentally (Guerci & Carollo, 2016). These benefits are enjoyed jointly once the organization begins implementing green HRM strategies.

Financially, Green HRM helps an organization to gain competitive advantage. Specific to the oil and gas industry, green HRM promotes the brand through their environmental principles and values across their various functions of their production, processing, and supply chain management (Wagner, 2015). With the increase in information sharing and environmental protection consciousness, consumers are keen to avoid oil companies and firms that engage in unfriendly environmental strategies. For example, an oil spill concern that leads to destruction of marine life damages the social image of an oil processing company. Similarly, green HRM will promote the social image of a company thus increasing its competitive advantage. In addition, Green HRM increases human resource output. Increased competitive advantage and increased human resource output are sure to boost the organizations profits, thus an attraction for companies to consider green HRM.

Significance of the study

Drilling technology is shifting towards cheaper, more efficient, eco-friendly solutions. Directional drilling methods have ensured numerous deviated wells that are drilled from one site are able to reach the widely-dispersed hydrocarbon-carrying formations (Jabbour et al., 2013; Fayyazi et al., 2015). Technologies used in oil extraction and successively and greatly diminish surface effects linked to drilling operations, allowing production from those reservoirs not accessible through ordinary vertical drilling on account of environmental constraints. A critical aspect when it comes to reducing environmental footprint is connected with cuttings and exhausted mud disposal, generated as a result of drilling operations. In case of land-based drilling activities, waste may be accumulated in a sump, dug for that purpose, which may be refilled upon drilling operation completion.

Fossil fuels, compared to other sources of energy e.g. Sunlight and electricity, are environmentally unfriendly. This is one of the challenges that faces Green HRM because the fact that oil and gas are environmentally unfriendly, the majority of people think that the Green concept cannot be applied to oil and gas production and processing companies. However, the process of extraction and processing can be done using green strategies (Fayyazi et al., 2015; Nejati et al., 2017). Environmental management literature frequently cites the argument that, as firms represent the chief source of environmental decadence, they must contribute the most to tackling environmental management issues. As a result, one can now witness the launch of a very broad array of environmental initiatives by companies and their executives, for dealing with environmental concerns. With regard to corporate sustainability, this implies a need to perform well, both financially, environmentally, and socially.

This study is therefore is vital significance as it’s not only shows how oil and gas companies can be environmentally friendly, but also provide top management with a strategy to increasing competitive advantage, human resource output, and financial income all simultaneously (Jabbour et al. 2013; Wagner, 2013). Green HRM therefore is to be considered a welcome to the oil and gas industry which, despite being environmentally unfriendly, has vital uses in running economies and with no equivalent substitute at the moment.

Research has put forwards many organizational and environmental factors as determinants of green practices adoption. While these factors are both internal and external, the top management has the primary role through support (Nejati et al., 2017; Longoni et al., 2016). The support of the top management in green HRM is considered as an important factor in the implementation of green practices in organizations. Specifically, the success of environmental management initiatives is largely dependent on executive support by promoting change and employees` empowerment; developing disciplinary procedures, and communicating environmental information throughout the organization.

Now, the theoretical background and study hypotheses will be presented in the next section before addressing research methods, presenting results, and finally discussing research findings and implications.

Theoretical Background and Hypotheses Development

Qatar Economy: Role of Oil and Gas Sector

Qatar is a high-income economy, supported by the world's third largest natural gas and oil reserves (Ibrahim and Harrigan, 2012). Since its independence in 1971, Qatar has witnessed rapid economic growth. The country has the highest per capita income in the world and is classified by the United Nations as a country of very high human development (Charfeddine et al., 2016). This has led to improvement in the society well-being, which is mainly attributed to the country`s main natural wealth of Oil and Gas sector.

This important sector currently accounts for about 55 percent of the country’s gross domestic product (GDP) and provides about 70 percent of the Qatari governments revenue, and is forecasted to support the growth of GDP in the country in the coming years, even with the decline in Oil and Gas prices in 2015 (Ministry of Development Planning and Statistics, 2016).

The country`s growth level, as described by Qatar national vision 2030, stands for four pillars: economic, social, human and environmental development. Although the Oil and Gas sector plays a major role in attaining Qatar`s 2030 vision, it encounters major challenges. For example, although Qatar has undertaken the responsibility of ensuring environmental sustainability as stated by environment sustainability pillar, the Oil and Gas production is considered as a major contributor to the deterioration of the environment (Charfeddine et al., 2016). For example, Qatar is known to have high level of CO2 emissions per capita, which is largely associated with the activities of the Oil and Gas sector (Richer, 2014). This is challenging for Qatar especially with the upcoming mega sport events such as the 2022 FIFA World Cup. Given this reality, Qatar has tried to address this problem by adopting a set of initiatives and programs that ensure a real progress toward environmental sustainability. For example, Oil and Gas companies are making huge efforts to balance between operational growth and environmental degradation of their operations (Richer, 2014). Similarly, in order to achieve corporate sustainability, companies seek to develop and implement environmental policies and programs such as EMS and to meet the criteria for achieving the ISO 14001 standards which focus on the human resource factor through the so-called green HRM (Daily and Huang, 2001). Moreover, Oil and Gas companies are expected to highlight the information related to environmental performance in their published annual reports (AlNaimi et al., 2012). This discussion shows the importance of the current study and the need to more similar research projects.

GHRM implementation in the oil and gas sector

Drilling technology is shifting towards cheaper, more efficient, eco-friendly solutions. Directional drilling methods have ensured numerous deviated wells that are drilled from one site are able to reach the widely-dispersed hydrocarbon-carrying formations. The multilateral drilling process advances directional or horizontal drilling a step further, through drilling several directional wells using one wellbore alone (Godec and Johnson, 2005). Such technologies, successively, greatly diminish surface effects linked to drilling operations, allowing production from those reservoirs not accessible through ordinary vertical drilling on account of environmental constraints. Slimhole drilling, coiled tubing and other latest technologies reduce waste volume, expenditure, noise, visual impacts, fuel consumption, and environmental footprints. Even if the above method fails at fully replacing conventional drilling operations, one may effectively utilize it during the initial exploitation stages, when marking out freshly discovered prospects, or when reentering extant wells using wellbores of small diameter for trapping fresh reserve within mature oil fields (Godec and Johnson, 2005). Research, over the last thirty years, has been faced with environmental regulations with regard to using oil-based muds (OBMs), thus promoting plant oil adoption to substitute for diesel. Much research has been conducted on non-edible oils’ role; researched non-edible oils include Jatropa oil, oil from rapeseed, soya beans, sesame, cottonseed, and palm, and Mahua oil (Adesina et al., 2012). Lihui and Xiaoqing (2009), for instance, came up with drilling fluids comprising largely of shale inhibitors and vegetal gum-, polyalcohol powder- and bloomless white asphalt- based fluid-loss control agents. These are biodegradable, lack toxic elements and have been utilized effectively in the ShengLi and Tarim oil fields (the latter is located within the northwest Chinese Taklimakan desert) with strong requirements for sea discharge. Amin and colleagues (2010) tested numerous esters as an external invert emulsion phase, derived from the biodiesel plants of Malaysia. The earliest field trial for esters was conducted in offshore Norway. But the tests displayed limited applications when it came to invert drilling fluids, because of their chemical and physical properties (e.g., high hydrolysis susceptibility) (Amin et al., 2010).

WBMs (water-based muds) constitute a workable possible alternative to oil-based muds, particularly in environmentally sensitive areas. Still, the potential benefits of WBMs need to be assessed carefully based on system characteristics: if smectite and certain other clay minerals are present, they may give rise to wellbore instability events of a time-dependent nature, like wall swelling followed by formation breakdown or pipe track that may be so serious that the wellbore has to be abandoned. A critical aspect when it comes to reducing environmental footprint is connected with cuttings and exhausted mud disposal, generated as a result of drilling operations. In case of land-based drilling activities, waste may be accumulated in a sump, dug for that purpose, which may be refilled upon drilling operation completion. The approach’s cost and logistic complexity increases as well numbers and length increase. Drilling waste injection and slurrification into chosen subsurface formations via disposal fracture initiation was a technique first employed in the year 1988. Since that time, the oil industry has become more experienced and knowledgeable, preferably adopting injection and slurrification in their drilling operations within several regions (Gogan et al., 2010).

Well Test

Increased restrictiveness of environmental regulations coupled with the general need for decreasing operational costs has led the industry to form and evaluate Water Quality standards. Ever since the late 1990s, water disposal, especially within off-shore settings, has been focused on. Norway’s oil and natural gas sector first introduced the EIF (Environmental Impact Factor), which improved insights into distinct toxic elements’ environmental effects. The main toxic elements include aliphatic hydrocarbons, aromatics (BTEX), alkylated phenols, and PAHs or heavy aromatic compounds (Gogan et al., 2010). Discharge within offshore settings necessitates appropriate adoption of technology like PECT-F (Performance Enhancing Coalescence) for dispersed hydrocarbon removal (Gogan et al., 2010). Currently, the most widely adopted water disposal approach involves underground injection: this method incorporates the benefit of disposal issue conjugation with EOR application or pressure support. Furthermore, DOWS (Downhole Oil/ Water Separation) implementation helps decrease amount of water that is brought to the surface, besides minimizing casing- and tubing- related risks of groundwater contamination (Godec and Johnson, 2005). Over ninety percent of water generated from on-shore American conventional wells gets injected (Neff and Hagemann, 2007). Thermal EOR operations allow produced water to be reutilized for the purpose of generating steam, thereby decreasing water volume needed for the process, following treatment for removing dissolved organics and solids (Godec and Johnson, 2005). The second extensively implemented approach is prevention philosophy, which mitigates water production-connected environmental issues. Numerous inventive methods are dedicated to minimizing water production, during primary as well as assisted production. Traditionally, in water flooding, polymer flooding adoption impacts aqueous phase mobility, in order for increasing sweep efficiency, thereby minimizing water generation and maximizing production of oil (Godec and Johnson, 2005). An emergent nanotechnology application is: development of novel “smart fluids” aimed at enhancing or improving oil recovery and facilitating water shut-off. In comparison to conventional methods, nano-polymers’ large surface area- to- volume ratio and extremely small size increases operational efficiency (including less-involved quantity of active principle, minimized environmental impact, and more positive economic conditions) (Xiaoqing and Lihui, 2009).

Environmental awareness and green HRM

A number of enterprises have historically adopted the approach of compliance within their environmental initiatives, and by consequence, rules and legislations guiding their environmental approaches. However, over the last many years, new consumer needs, consumer boycotts, global environmental standards, dynamic preferences, and other environmental factors have influenced core values and the fundamental business strategies of corporations (Daily, et al., 2007). Organizations are part of society, and it is imperative that they function like team players; this is where the concept of “green” management becomes relevant. A key schema now is that a company’s outcome is strongly impacted by environmental concerns (Tariq, et al. 2016).

The blatant reality and acknowledgement of the environmental effects of routine business activities (together with rapid depletion of natural resources) led to the stimulation of people, societies, and corporations, to take the “green” course. Environmental sustainability has been

increasingly becoming a matter for concern among management scholars, managers, governmental bodies, and buyers. Enforcing measures for environmental protection (including soil, air, and water ecosystems) is broadly called environmental performance. Environmental performance refers to the actual outcomes of environmental efforts in terms of protecting the environment (Burgos- Jimenez , et al. 2013, p. 984). This concept is growing in significance for corporations as well as nations (Mehta & Chugan, 2015).

Environmental management literature frequently cites the argument that, as firms represent the chief source of environmental decadence, they must contribute the most to tackling environmental management issues. As a result, one can now witness the launch of a very broad array of environmental initiatives by companies and their executives, for dealing with environmental concerns. With regard to corporate sustainability, this implies a need to perform well, both financially, environmentally, and socially.

It is frequently argued that improved environmental performance results in improved economic performance. Growing environmental awareness has caused public regulatory agencies and other players to broaden environmental concerns. Furthermore, companies have invested in their respective environment management structures for enhancing their reputation in society and reducing vulnerability to environmental catastrophes (Kassinis and Vafeas, 2006). Likewise, buyers are focusing increasingly on companies’ environmental conduct, and this affects their brand loyalty and preferences (Dangelico and Pujari, 2010). In fact, a growing share of chief executives has prioritized environmental sustainability, making it a permanent subject on their respective corporate agendas (McKinsey, 2014).

Sustainability is a concept that is also applicable to the HRM function itself. Quite often, strategic HRM reports reflect an assumption that people in a firm are to be exploited and consumed, and not retained and developed (Ehnert, 2009). A green HRM model has emerged as a business response to degradation of the environment (Renwick, et al. 2013). The concept denotes personnel management that fulfills an organization’s and the overall society’s current needs without conceding their ability of satisfying future needs. A more comprehensive green HRM practice can place the concept of sustainability at personnel management’s core. This approach guarantees potential advantages for companies as well as for their employees. For the former, some evidence exists of an association between improved environmental performance and financial performance (this has been labeled the ‘green pays’ claim) (Crotty and Rodgers, 2011). These findings, combined with the strong research that reports a sound link between HRM and corporate performance, indicate that green HRM may play a role in the improvement of environmental as well as financial performance of companies. Equally, green HRM practices will likely improve the workforce’s workplace wellbeing, by improving their work climate and meeting the requirements and demands of twenty-first century personnel who are growing increasingly more environmentally aware. To sum up, green HRM is capable of positively influencing environmental well-being as well as business performance (Renwick, et al. 2013).

Top management support and green HRM

Researchers have proposed many organizational and environmental factors as determinants of green practices adoption (e.g. Abdel-Maksoud et al., 2016; Gadenne et al., 2009; Henriques and Sadorsky, 1999). Examples of environmental factors, in particular, include level of environmental uncertainty, regulatory pressure and customer pressure. Organizational factors, on the other hand, include, for example, company size and support (Lopez-Gamero et al., 2008; Lin and Ho, 2011).

Although these factors have been considered in previous research examining green practices, they haven`t been broadly considered in research about green HRM with few exceptions (e.g. Guerci et al., 2016). This study contributes to fill this research gap by examining possible organizational determinants for adopting green HRM in the Oil and Gas sector. These are top management support and environmental orientation.

Top management support has been considered as an important factor in the implementation of green practices in organizations (Daily and Huang, 2001). In particular, the success of environmental management initiatives is largely dependent on executive support by promoting change and employees` empowerment; developing disciplinary procedures, and communicating environmental information throughout the organization (Zoogah, 2011). Miles and Covin (2000) have argued that managers significantly influence the commitment of employees toward environmental practices. Daily et al. (2007) argued that top managers could serve as champions of change to help the company implement EMS.

The support provided by top managers toward EMS implementation is needed to build an organizational culture that supports change initiatives (Daily and Huang, 2001). It becomes evident that an organizational culture that supports organizational changes, facilitates employee involvement and participation, and promotes desired behaviours is necessary to promote environmental issues and practices. According to this, we propose that top management support positively influences green HRM. Thus, the following hypothesis is developed:

Hypothesis 1: Top management support has a significant positive influence on green HRM.

Environmental orientation and green HRM

Environmental orientation reflects the recognition and practice of ethical values by organizational actors as a commitment to the natural environment (Banerjee, 2002). Nair and Ndubisi (2015) go further and describe environmental orientation as a “corporate state of mind” that impacts and gets impacted by every business activity. According to Banerjee (2002), environmental orientation can be internal, whereby managers and employees shape and recognize values about the importance of protecting the natural environment. External environmental orientation, on the other hand, deals with the company`s relationship with its external stakeholders (Banerjee et al., 2003).

Previous research suggests that promoting the existence of a well-communicated environmental policy derives more clarity to organizational direction toward environmental sustainability (Ramus & Steger, 2000). Moreover, the implementation of an effective EMS that integrates company programs and policies is reported to lead to improved environmental performance (Theyel, 2000). Therefore, the provision of environmental corporate culture that consists of environmental values system throughout the organization will have a positive impact on environmental performance (Nair & Ndubisi, 2015). Accordingly, there is a strong evidence to suggest that environmental orientation will lead to improved environmental performance.

We argue that environmental orientation can help organizations develop concerns about environmental issues and hence implementing green HRM practices. For example, it promotes effective environmental value system within the company and help employees to understand the importance of environmental issues which could serve as an enforcement mechanism in the implementation of green HRM practices. In the same vein, Paille et al (2014) indicated that the degree to which people in organizations are conceived by environmental issues is an important

condition for implementing green HRM. In particular, when organizations emphasize environmental values as critical component of their corporate culture, they are more likely to hire employees who are more sensitive to environmental issues and are more willing to engage in environmental-related activities such as green HRM (Guerci et al., 2016). More specifically, if people are more oriented to protect the natural environment, they will be more committed to the values enforced to protect the environment. In other words, environmental orientation encourages employees to engage in green behaviors such as green HRM practices.

Hypothesis 2: Environmental orientation has a significant positive influence on green

HRM.

The mediating role of green HRM

For ensuring a firm acquires proper green contributions by its workforce, the modification or adaptation HRM function to become green is essential. Traditionally, HRM departments are in charge of a wide range of HRM functions such as recruitment and performance appraisal. Going green with any HRM function requires practices, policies, and procedures that guarantee appropriate green contributions and job performance by personnel. In an ideal world, all functions can be made green. For instance, the employee recruitment function can foster effective environmental management by making sure newly recruited individuals share a company’s environmental ideals and understand the environmental culture of the company (Opatha & Arulrajah, 2014). Moreover, training on green issues is widespread now and is used to heighten employees` awareness of environmental impact of their organization`s activities (Renwick et al.

2013). It can also be used to train employees on core green related skills such as how to collect relevant waste data (May and Flannery, 1995). With respect to pay and reward system, some

previous research have provided evidence that paying for environmental management performance is effective, particularly at CEO compensation level (e.g. Fernandez et al. 2003). Finally, providing green opportunities through employee participation in environmental issues is often seen as crucial to successful outcomes (Renwick et al. 2013).

Although the broader HRM literature accepts the existence of a relationship between specific HRM practices like personnel engagement and positive business outcomes (e.g. Hunton-Clarke and coworkers, 2002), literature on the concept of green HRM is marked by assertions and counter assertions (e.g. Jabbour et al., 2008; Jabbour and Santos, 2008,). There is also a lack of empirical research connecting distinct HRM practices in the many levels or steps of green HRM implementation. However, Renwick and coworkers’ (2013) recent review of green HRM corroborated the fact that numerous HRM practices have a positive relationship with environmental performance. In particular, “green hiring” (hiring people possessing definite environmental proficiencies and general environmental sensitivity), green engagement and training (cultivating environmental capabilities and ensuring the workforce engages in green conduct) and green compensation and performance management (personnel performance appraisal by acknowledging and rewarding green conduct) have been found to link with environmental performance (Guerci, et al. 2016). Similarly, Guerci et al. (2016) reported a significant positive effect of green training and involvement, green performance management, and compensation functions on environmental performance.

However, with the small bunch of empirical research that exist so far examining mediating effects of green HRM (Henri and Journeault, 2010), one can argue that, in order for this relationship to exist, possible contextual factors are deemed important and can serve as prerequisite to adopt an effective green HRM (Lopez-Gamero et al., 2011). For example, Chinander (2001)