Achieving Sustainable Financial Performance through the Integration of Green HRM and Green Marketing: An Empirical Analysis

Abstract

This study investigated the impact of integrating Green Human Resource Management (GHRM) and Green Marketing (GM) on Sustainable Financial Performance (SFP), with Green Innovation (GI) and Brand Loyalty (BL) serving as mediating variables. Drawing on data collected from 328 organizational respondents and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM), the research confirmed the significant influence of GHRM on GI and SFP, as well as GM’s impact on BL. The findings revealed that GI and BL play critical mediating roles in enhancing financial outcomes. Furthermore, a significant interaction effect between GHRM and GM indicated that their alignment produced a synergistic impact on SFP, surpassing the effects of each strategy when implemented individually. The model explained 64.2% of the variance in SFP, with strong predictive relevance demonstrated through Q² values. These results contribute to theoretical frameworks such as the Resource-Based View (RBV) and stakeholder theory, emphasizing that both internal capabilities and external green signaling are essential for long-term performance. Practically, the study recommends aligning HR and marketing sustainability strategies to achieve optimal financial benefits. The findings also underscore the importance of fostering innovation and cultivating brand loyalty through credible green practices. This study offers strategic guidance to firms aiming to enhance their environmental responsibility while securing competitive and financial advantages.