HOW GREEN HRM DRIVES FINANCIAL PERFORMANCE, THE ROLES OF TOP MANAGEMENT SUPPORT AND GREEN WORK CLIMATE PERCEPTION IN PAKISTANI BANKS

Abstract

This research analyzes the mediating effects of top management support between green human resource management and financial performance, and the moderating effects of the green work climate perception in the Pakistani banking industry. The paper is based on the theory of Ability-Motivation-Opportunity where the survey data were gathered among 240 employees in the bank and processed using SmartPLS 4 with partial least squares structural equation modelling. The most important findings are that top management support plays a significant mediating role in the relationship between green human resource management and financial performance, and that this mediating relationship is positively moderated by the green work climate perception. Such findings emphasize the vital nature of leadership engagement and an environmental workplace conducive to transforming green HR programs into financial returns in the banking sector. The implications are that organizations ought to invest strategically in green human resource practices and in developing a favorable green work climate to maximize financial returns. The research provides unique insights by thoroughly exploring the confounding relationships between top management support and green work climate perception within a specific segment of the Pakistani banking industry, thereby contributing to a better comprehension of the role of GHRM in the financial performance of developing economies.