The impact of green HRM on green competitive advantage in tourism SMES: The mediating role of Eco-innovation

Abstract

The increasing significance of sustainability in business practices, particularly within the tourism industry, has driven organizations to adopt green practices to stay competitive. This study examines the impact of Green Human Resource Management (Green HRM) on Green Competitive Advantage in tourism SMEs, focusing on the mediating role of eco-innovation. Using a quantitative research design and Partial Least Squares Structural Equation Modeling (PLS-SEM), data was collected from 272 managers and employees of tourism SMEs through structured surveys. The results demonstrate that Green HRM significantly influences eco-innovation (? = 0.435, p< 0.001). However, when green creative actions (INNOVATION) are included as a mediator, the direct effect of Green HRM on eco-innovation diminishes (? = 0.191, p = 0.356), while the indirect effect through green creative actions remains significant (? = 0.243, p< 0.001). This indicates full mediation, underscoring the critical role of innovation in translating green HR practices into competitive advantages.The demographic profile of respondents reveals a balanced representation of genders, a majority within the 26-35 age range, and a significant proportion holding bachelor’s or master’s degrees, indicating a well-educated workforce. These findings offer valuable insights for practitioners, policymakers, and academics in enhancing sustainability and competitive positioning within the tourism industry.