From green human resource management to employee job performance: evidence from the Indonesian banking sector

Green human resource management (GHRM) has emerged as an important organizational strategy for enhancing sustainability and employee outcomes. This study examines the effect of GHRM on employee job performance through the mediating role of employee innovation and the moderating role of work environment in the Indonesian banking sector. Drawing on the resource-based view and ability–motivation–opportunity perspectives, data were collected from 272 employees working in Indonesian banks. The proposed model was analyzed using partial least squares structural equation modeling (PLS-SEM). The results indicate that GHRM positively influences employee innovation and employee job performance. Employee innovation is also positively associated with employee job performance and partially mediates the relationship between GHRM and employee job performance. Furthermore, the findings reveal that work environment strengthens the positive effect of employee innovation on employee job performance, suggesting that supportive workplace conditions enhance the effectiveness of innovative employee behavior. These findings contribute to the growing GHRM literature by providing evidence of the mechanism through which GHRM improves employee performance and by highlighting the contextual role of work environment in translating innovation into performance outcomes. The study also offers practical insights for banking organizations seeking to improve employee performance while advancing sustainability-oriented human resource practices.