The Impact of Environment Ethics and Performance on Firm Competitive Advantage: A Dynamic Capability Framework with Green HRM Practices

Abstract

Environmental concerns have become the central point of discussion for businesses because climate change results from negligence by the industries have put the planet at stake. To survive in this era, stakeholders have started pressuring the firms to adopt environmentally friendly practices to save the planet and build a positive image among the customers. This study has used the framework of Dynamic capabilities (DC) to examine the hypotheses extracted from the previous literature suggesting the nexus of environmental ethics and performance in building competitive advantage through the help of green HRM practices. The findings of our study reveal that environmental ethics and performance have a significant impact on competitive advantage. The study also revealed that green HRM practices of an organization moderates the relationship between environmental ethics and performance on a firm's competitive advantage. The study results suggest that the organizational approach towards environmental and ethical practices in the workplace should not be reactive but proactive to create and sustain synergy amongst the triads, namely, profits, society, and the environment. Green HRM practices should be adopted effectively to beat the competition and improve environmental performance in the organization.