Green human resource management and sustainability: moderating role of absorptive capacity

Abstract

This research aims to investigate the influence of green human resource management (HRM), with analysis and description of job position, recruitment, selection, training, performance assessment and rewards on sustainability with the resource-based view (RBV) theory as underlying theory. The extent to which absorptive capacity strengthened the “green HRM-sustainability” link as a buffering mechanism was also examined. The study model was tested with empirical data gathered from 253 Indonesian oil and gas firms. The elicited data were analysed using structural equation modelling using partial least squares (PLS). Resultantly, the (i) analysis and description of job position and (ii) recruitment positively influenced sustainability. Absorptive capacity also influenced the strength of the moderated relationship between (i) recruitment and (ii) training and sustainability. As far as we know, this is the first study which assigned the moderator role of absorptive capacity in a relationship between green HRM and sustainability in oil and gas firms in Indonesia. Notably, the theoretical and practical implications of applying the empirical outcomes to the oil and gas sector were extensively discussed.