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

The Effect of Green Talent Management Practices on Green Human Capital Development in North Sumatra’s Industrial Sector

Manda Dwipayani Bhastary (Institut Bisnis Informasi Teknolgi dan Bisnis, Medan, Indonesia)
Anggia Sari Lubis (Universitas Sumatera Utara, Medan, Indonesia)
Wan Rizca Amelia (Universitas Medan Area, Medan, Indonesia)
Ika Puspa Satriany (Institut Bisnis Informasi Teknolgi dan Bisnis, Medan, Indonesia)
Irwadi (Sekolah Tinggi Manajemen Bisnis Multi Sarana Manajemen Administrasi Rekayasa dan Teknologi, Medan, Indonesia)



Article Info

Publish Date
31 Mar 2026

Abstract

Industrial sustainability hinges on a workforce equipped with environmental expertise, green competencies, environmental consciousness, and conduct oriented toward sustainability. Green Talent Management is progressively recognized as a strategic method for cultivating green human capital, as it extends beyond conventional HR practices to encompass the attraction, development, motivation, and retention of personnel possessing sustainability-related proficiencies. The purpose of this research is to investigate how Green Talent Management practices influence the advancement of Green Human Capital within the industrial sector of North Sumatra. Employing a quantitative survey methodology, this research engaged employees and managers from industrial enterprises in North Sumatra. Of the 250 questionnaires disseminated, 225 were returned, and 210 valid responses underwent analysis. Green Talent Management was assessed via five components: green recruitment and selection, green training and development, green performance appraisal, green rewards, and green employee involvement. Data analysis was conducted through Partial Least Squares Structural Equation Modeling using SmartPLS. The outcomes reveal that every Green Talent Management practice exerts a positive and significant impact on Green Human Capital Development. The model accounts for 68.7% of the variation in Green Human Capital Development, reflected in an R-square value of 0.687. Notably, green training and development demonstrates the most substantial effect, with a path coefficient of β = 0.326, followed by green employee involvement at β = 0.247. Green Talent Management facilitates the enhancement of green human capital in North Sumatra’s industrial sector. Industrial enterprises are advised to bolster environmental training, incorporate green metrics into talent assessments, and foster active employee participation in sustainability programs to elevate workforce capabilities and sustain competitive advantage.

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 ...