Abstract
With growing public concerns about sustainability and environmental awareness, Green human resource management (GHRM) has become a strategic tool for promoting organizational green transformation and environmental performance. Utilizing the AMO (ability-motivation-opportunity) and resource-based view theory, this study examines the impact of GHRM on sustainable firm performance mediated by green innovation and moderated by green transformational leadership via a two-wave survey study. The study gathered data from 318 employees of construction firms composed of engineers, senior, middle and low-level managers. Structural equation modeling was used to test the proposed hypotheses. We find support that GHRM significantly increases sustainable firm performance (social, economic, and environmental) with mediating mechanism of green innovation. In addition, green transformational leadership positively moderates GHRM and green innovation nexus. Similarly, it is found that GHRM has a significant impact on green innovation as GHRM practices make capabilities to respond to any change in organization. The findings are important for improving organizational performance in private and public sector firms where competitive advantage has been figured out more profoundly. Overall, the study findings supported almost all direct, indirect, and moderating hypotheses and provided some novel theoretical and practical implications.