From Inspiration to Action: The Impact of Green Transformational Leadership and GHRM on Employee Pro-Environmental Behavior, With the Mediating Role of Environmental Awareness in the SME’s Industry of Pakistan

Abstract

The increasing environmental crisis especially, climate change challenges countries like Pakistan, which contribute minimally to the global house gas emissions and yet, remain highly vulnerable to its effects. SMEs account for 40% of GDP of Pakistan and deliver several economic benefits while also impacting the environment through unsustainable practices. The research delves into examining the interaction between green human resource management (GHRM) and green transformational leadership (GTL) in influencing employee’s pro-environmental behavior in Pakistani SMEs. Against this backdrop, the main aim of the study is to examine how green transformational leadership (GTL) and green human resource Management (GHRM) can cultivate environmentally sustainable behaviors among employees. Green transformational leadership (GTL) can be defined in the context of inspiring and motivating employees towards sustainable initiatives and plays a pivotal role in shaping organizational culture that prioritizes the environment. Concurrently, Green Human Resource Management practices (GHRM) include environmentally friendly recruitment, performance management and training initiatives, and aligning the behaviors of employees with sustainable outcomes. This particular dissertation posits environmental consciousness (EC) which is the awareness of the employees of their impact on the Environment. Environmental consciousness acts as a mediator between the leadership and the management practices as well as the pro-environmental behaviors. The study utilizes a quantitative approach through administration of questionnaire surveys distributed to the employees within the small and medium enterprises (SMES) of Punjab, Pakistan. The sample included diverse demographic backgrounds which ensured a comprehensive evaluation of the relationship among the variables. Findings indicated that there is a statistically significantly relationship among the constructs particularly both the green transformation leadership (GTL) and the green human resource management (GHRM) correlate positively with the pro-environmental behaviors of the employees (PEB). The role of effective leadership and human resource strategies is emphasized in the enhancement of sustainability practices. The analysis has indicated that the role of environmental consciousness slightly mediates the relationships and indicated that increased awareness of environmental issues prompted employees to adopt sustainable practices.The study also establishes crucial implications for (SMEs) in Pakistan as it signifies the necessity of green transformational leadership training programs in empowering leaders to effectively integrate sustainability into management strategies while simultaneously enhancing the environmental consciousness (EC) of employees through targeted green human resource management practices (GHRM). These findings have presented empirical evidence that bolsters the integration of green initiatives into the practices of businesses, further helping the smaller medium enterprises (SMEs) to mitigate their environmental impact, align their operations with sustainability goals, and contribute to broader environmental conservation efforts. Despite the valuable insights, the dissertation relied on self-reported data which can introduce response biases. Additionally, the research is only constrained to a specific geographical area which restricts the ability to generalize the findings into the other context of the country. Future research is encouraged to examine a larger sample size and consider longitudinal studies to track changes in the behaviors overtime thereby providing a deeper insight into the effective strategies for fostering sustainable initiatives in the workplace. Overall this dissertation contributes to growing discourse in sustainable practices of business particularly within the small and medium enterprise (SMEs) sector of the developing countries signifying the pivotal role of leadership management and employee consciousness in addressing of the pressing challenges.