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

21

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…

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

21

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…

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 researchhas 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

21

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),...

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 Qatars 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 aplying 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 its 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 initiaties 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 (Ibrah