Effect of green human resource management practices on green organizational performance: Evidence from foreign direct investment sector of Vietnam

Amid escalating environmental challenges, Green Human Resource Management (GHRM) has emerged as a critical organizational strategy for enhancing green organizational performance (GOP). This study investigates the mechanisms through which GHRM practices influence GOP by examining the mediating roles of employees’ environmental knowledge (EK) and pro-environmental behaviors (PEBs) in FDI enterprises in Vietnam. Drawing on the Ability-Motivation-Opportunity (AMO) theory and Social Identity Theory (SIT), the study develops and tests an integrated conceptual framework. A quantitative research design was employed, with data collected from 412 FDI enterprises across four major FDI-concentrated localities in northern Vietnam. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to examine the hypothesized relationships among GHRM, EK, PEBs, and GOP. The empirical results demonstrate that GHRM practices have significant positive effects on both EK and PEBs. Furthermore, EK and PEBs are found to exert strong positive influences on GOP. Mediation analysis reveals that EK and PEBs jointly mediate the relationship between GHRM and GOP, while EK also plays a mediating role between GHRM and PEBs. These findings indicate that GHRM enhances GOP primarily by strengthening EK and fostering environmentally responsible behaviors. The study offers important practical implications for managers and policymakers. Integrating environmental objectives into HRM practices and investing in environmental training programs can effectively enhance EK and promote PEB, thereby improving GOP. Policymakers may facilitate this process by providing supportive regulatory frameworks and incentives for sustainable HRM adoption. By providing empirical evidence from an emerging economy context, this research contributes to the literature by clarifying the behavioral and cognitive pathways linking GHRM to green organizational outcomes.