Enhancing the Performance of Employee Through Green HRM: Evidence from the Export-Oriented Teak Furniture Sector in Central Java
Keywords: Green organizational culture, Green performance management, Green pay and reward, Green involvement, Employee performance, Organizational citizenship behavior for the environment employees
Abstract
Purpose – This study aimed to examine how Green Organizational Culture (GOC), Green Performance Management (GPM), Green Pay and Reward (GPR), and Green Involvement (GI) relate to Employee Performance (EP), with Organizational Citizenship Behavior for the Environment (OCBE) serving as a mediating variable. The research focused on the export-oriented teak furniture sector in Central Java, Indonesia.
Methodology – The research population consist all employees working in export-focused teak wood furniture companies across Central Java. Using a modified Slovin’s formula with a 6% margin of error and considering field efficiency, 115 employees were selected from a total population of 160. The study applied proportional stratified random sampling to ensure representative coverage of worker groups. Data analysis was conducted using Structural Equation Modeling (SEM).
Findings – The results demonstrated that OCBE plays an indirect mediating role, significantly strengthening the positive effects of GOC, GPM, GPR, and GI on EP. OCBE itself had a direct and significantly positive influence on employee performance. In contrast, direct effects revealed that GOC and GPR negatively impacted EP, while the direct influences of GPM and GI were not statistically significant.
Originality This study contributes novel insights by focusing on a labor-intensive, natural-resource-dependent industry that remains underexplored in human resource management research. By positioning OCBE as a mediating factor, the study enhances understanding of how environmentally oriented employee behaviors facilitate the translation of sustainable HR practices into improved performance. The variables examined have not been studied within export-oriented teak furniture companies in Central Java, reinforcing the study’s originality and contextual relevance.
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