Addressing the challenge of market competition in light of stringent environmental regulations in developing countries, this study examines the causal and configurational relationships between green high-performance work systems (GHPWS), green competencies, institutional supportand green performance.
This study assesses the relationships using a dual-method approach (partial least squares structural equation modeling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA) based on data gathered from 356 Chinese manufacturing managers.
The study findings revealed a significant positive effect of the GHPW on green product performance (GPDP) and green process performance (GPRP). These relationships are also partially mediated by green competencies. In contrast, institutional support has a positive and significant moderating effect on the relationship between green competencies and GPRP, but an insignificant moderating effect on GPDP. fsQCA also provides insight into several configurations of GHPWS, green competencies and institutional support that enhance green performance.
The research offers a novel approach to using green intangible resources to accelerate green competencies, resulting in GPDP and GPRP that reduce environmental degradation of manufacturing firms.
Drawing upon institutional theory, this study advances the literature on GHPWS, green competencies and green performance. Differentiating green performance into GPDP and GPRP, the study provides theoretical and practical insights into the moderating effect of institutional support on green performance.
