article · Business Strategy & Development
This research assesses the effect of green human resource management and internal green supply chain management practices on operational performance in Ethiopia. Based on survey responses from 219 large and medium manufacturing enterprises across the leather, textile, agro-processing, and cement sectors, the analysis reveals that internal green supply chain practices directly improve operational outcomes. Specific activities such as eco-design and internal environmental management deliver measurable performance benefits. While green human resource management fosters an organisational culture that reinforces these environmental practices, its influence on operational performance functions indirectly through the adoption of internal green supply chain activities. Integrating environmental priorities across both workforce management and supply chain functions helps manufacturing firms achieve better operational results.
Industrial growth often comes at a high environmental cost. This work demonstrates that adopting environmentally sound operational and personnel practices is not simply a compliance burden, but a viable method for manufacturing firms to strengthen their operational performance. It provides evidence that sustainable corporate policies can align environmental responsibility with everyday operational success.
The insights apply directly to operational managers, human resource directors, and industrial policymakers seeking to improve manufacturing efficiency. Because the findings are drawn from applied empirical surveys of active enterprises in sectors like textiles and cement, the managerial principles are ready for immediate organizational adoption, though specific commercial tools or software solutions are not developed in the study.
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Abstract The increasing environmental impact has triggered a global shift towards eco‐friendly business strategies. This study examines the impact of green human resource management (GHRM) and internal green supply chain management (IGSCM) on operational performance within the Ethiopian manufacturing sector. Survey data from 219 large and medium‐sized companies in the leather, textiles, agro processing, and cement industries were analysed using partial least squares structural equation modelling. The findings demonstrate that IGSCM practises, such as eco‐design and internal environmental management, have a positive impact on operational performance. GHRM encourages a culture that supports these practises. Mediation analysis reveals that GHRM indirectly enhances operational performance through IGSCM practises. This study contributes to the existing literature on sustainable HR and supply chain management by emphasising the importance of integrating environmental considerations into HR and supply chain strategies to enhance operational outcomes. Policymakers are encouraged to utilise these findings to develop frameworks that promote environmentally sustainable business practises.
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DOI: 10.1002/bsd2.399
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