Fundamental and Applied Management Journal
Vol. 4 No. 1 (2026): Fundamental and Applied Management Journal

Green Human Resource Management and Competitive Advantage: The Mediating Role of Organizational Commitment in Private Firms

Nst, Amir Makhmud Zain (Unknown)
Sari, Dian Purnama (Unknown)



Article Info

Publish Date
31 Mar 2026

Abstract

This study examines the effect of Green Human Resource Management (GHRM) on competitive advantage with organizational commitment as a mediating variable in private firms in Medan, Indonesia. As sustainability becomes a strategic imperative, firms are increasingly integrating environmental principles into their human resource systems to strengthen long-term competitiveness. However, limited empirical evidence explains the internal mechanism linking GHRM to competitive advantage, particularly in emerging economy contexts. This research adopts a quantitative approach using survey data collected from 212 employees of private firms in Medan. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct and indirect relationships. The results indicate that GHRM significantly influences organizational commitment (β = 0.68, p < 0.001) and competitive advantage (β = 0.29, p < 0.001). Organizational commitment also significantly affects competitive advantage (β = 0.41, p < 0.001) and partially mediates the relationship between GHRM and competitive advantage. The findings highlight that sustainability-oriented HR practices function as strategic resources that enhance employee attachment and strengthen firm competitiveness. This study contributes to the integration of the Resource-Based View and social exchange theory and provides practical insights for firms seeking to align sustainability initiatives with competitive performance.

Copyrights © 2026






Journal Info

Abbrev

FAMJ

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Strategic and Operations Management, addressing strategic decision-making, operational excellence, supply chain, process improvement, and performance management. Business and International Management, covering global strategy, cross-border operations, internationalization, and comparative management ...