Journal of Management and Entrepreneurship Research
Vol. 7 No. 3 (2026)

Green HR Practices and Green Innovation for Enhancing MSMEs Performance: The Mediating Role of Organizational Agility

Ernest Grace (Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Indonesia)
Elly Romy (Universitas Prima Indonesia, Indonesia)
Setiyawami Setiyawami (Universitas Negeri Yogyakarta, Indonesia)
Acai Sudirman (Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Indonesia)



Article Info

Publish Date
15 Sep 2026

Abstract

Objective: This study aims to empirically test the impact of Green human resource management (Green HR practices) and green innovation on the performance of micro, small, and medium enterprises (MSMEs). Research Design & Methods: A quantitative study with SEM-PLS was used. Data were gathered from 250 MSME owners and managers in North Sumatra, Indonesia. Findings: Results showed that Green HR practices and green innovation positively impact both organizational agility and MSMEs' performance. Organizational agility partially mediated the relationship between green human resource practices, green innovation, and MSMEs' performance. Implications & Recommendations: MSMEs must implement green human resource practices and green innovation to sustain competitive advantage and economic viability. Efforts should be channeled towards employees' skill development in environmental management, building a green culture in the organization, and developing green technologies to make the organization more agile. Contribution & Value Added: The present study empirically validates a combined model linking green human resource practices, green innovation, organizational agility, and the business performance of MSMEs enterprises, which is novel and has not been previously investigated to the best of the researcher's knowledge. This study extends previous research by emphasizing the strategic role of organizational agility as a mediating mechanism linking Green Human Resource (Green HR) practices, green innovation, and MSMEs' performance.

Copyrights © 2026






Journal Info

Abbrev

jmer

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

JMER: Journal of Management and Entrepreneurship Research (p-ISSN: 2723-1658; e-ISSN: 2723-1666) provides a venue for high quality manuscripts dealing with management and entrepreneurship in its broadest sense. The editorial board encourages manuscripts that are international in scope; however, ...