Ethical Leadership, Green HRM Practices and Environmental Performance of Manufacturing SMEs at Selangor, Malaysia

Abstract

The relevance of the environmental agenda for the business has increased tremendously in recent years globally. The ecological performance of small and medium-sized enterprises (SMEs) in Malaysia deserves more academic scrutiny since it is expected that this sector influence on the environment is significantly higher than the large corporations. To tackle the negative ecological influence of SMEs, ethical leadership from top management level, green HRM practices, and green technology adoption can play crucial role. Thus, this paper examined the association between ethical leadership (EL) and green human resource management practices (GHRMP) on environmental performance (EP) of manufacturing SMEs at Selangor, Malaysia along with moderating influence of green technology adoption (GTA). Quantitative methodology, non-probability convenience sampling method was applied and responses were collected from 140 managers and from 140 manufacturing firms situated at Selangor, Malaysia. Data analysis through smart PLS software reveals that EL, GHRMP have positive significant relationship on EP. EL and GHRMP both significantly moderate with EP in the presence of GTA. The research findings will inspire the industry player, policy makers, and different stakeholders to develop policies and engage in green practices. With the inclusion of diverse constructs, the model offers novel contribution on both academia and industry practice.