Purpose This study aims to assess the influence of sustainable leadership, stakeholder pressure and the business environment on green human resource management (GHRM), green organizational culture (GOC) and green innovation performance, ultimately shaping the overall development of small and medium enterprises (SMEs). Design/methodology/approach This study uses questionnaire survey data, measured on a five-point Likert scale. Partial Least Squares Structural Equation Modeling is the method used to analyze this data. Findings The findings reveal that a positive business environment, GHRM, green innovation performance and GOC significantly drive SME development. Stakeholder pressure enhances the adoption of green practices, while sustainable leadership plays a crucial role in shaping organizational culture. This study highlights the importance of eco-investment and effective policies in promoting sustainability within SMEs. Practical implications This study provides practical insights for SME leaders and policymakers to foster sustainability through evolving leadership practices and enhanced green innovation. It suggests that policies such as government incentives, tax breaks for sustainable SMEs and mandatory GHRM reporting can support SMEs in adopting green practices and remaining competitive in a sustainable market. Originality/value This research contributes to the knowledge of its effects on GHRM, GOC and green innovation performance in SMEs using the resource-based view theory, it highlights GOC and GHRM as mediators, thereby contributing to literature gaps on sustainability practices in SMEs.
Tariq et al. (Fri,) studied this question.
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