How and when do an organization's social sustainability orientation and green human resource practices enhance its sustainable performance?
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Abstract
Drawing from the Resource-based view (RBV) of the firm, this study investigates how and when organizations’ strategic intent of social sustainability orientation translates into their sustainable firm performance. In doing so, we explain the mediating role of the collective affective commitment of employees and the moderating role of green HRM policies. To test these predictions, we conducted two field-survey studies. In study 1, we relied on time-lagged data, collected in two rounds, from 199 employees working in three organizations that are green-company certified by WWF in Pakistan. In study 2, we collected three-wave time-separated data from 133 employees in twelve randomly selected organizations. The findings from both studies provide support for our predictions and reveal that a key reason why organizations with a social sustainability orientation achieve higher sustainable performance is that their employees develop a shared belief that environmental conservation initiatives are both valued and expected. Moreover, this process is more salient in organizations that adopt green HRM policies. That is, green HRM policies reinforce that the organization is particularly concerned about social sustainability, therefore, employees become more committed to serving this cause. The findings of this study have important theoretical and practical implications for SDGs, HR managers, and organizations.