Environmental Performance in the Artificial Intelligence Era: Green HRM Mediation and Green Culture Moderation with Importance-Performance Map Analysis
DOI:
https://doi.org/10.64534/cxxa1k23Keywords:
AI, green HRM, green culture, environmental performance, palm oil industry, dynamic capability theory.Abstract
This study aims to investigate the function of artificial intelligence (AI) in supporting green human resource management (GHRM) practices for improving environmental performance, as well as exploring the reinforcing impact of green culture based on dynamic capability theory insights. Data collection was conducted using structured questionnaires administered to 467 managers working in the palm oil business in West Sumatra, Indonesia with a convenience sampling approach. Partial Least Squares–Structural Equation Modelling (PLS-SEM) and importance–performance map analysis (IPMA) was used to investigate the data. The results suggest that AI significantly improves environmental performance and GHRM, while GHRM also positively affects environmental performance. GHRM mediates the relationship between AI and environmental performance. Green culture strengthens the AI effect on environmental performance but does not significantly moderate the AI and GHRM connection, nor does it produce a significant moderate mediation effect. The proposed model demonstrates that GHRM has moderate explanatory power (R2 = 0.610) and environmental performance has weak explanatory power (R2 = 0.290). AI has a moderate effect on GHRM (f2 = 0.313), whereas the remaining direct effects and other interactions are relatively small. In addition, the model exhibits positive predictive relevance for GHRM (Q2 = 0.07) and environmental performance (Q2 = 0.08), although its predictive capability remains relatively limited. The findings highlight the strategic role of AI in enhancing environmental performance both direct and indirect effect via GHRM. A strong green culture further amplifies this effect. This research adds to the integration of AI, GHRM, and green culture within the dynamic capability perspective and provides practical insights relevant to managers and policymakers, to optimize AI-driven HR practices and organizational culture for improved environmental performance.
References
Abbas, J., & Khan, S. M. (2023). Green knowledge management and organizational green culture: an interaction for organizational green innovation and green performance. Journal of Knowledge Management, 27(7), 1852-1870. https://doi.org/10.1108/JKM-03-2022-0156
Aggarwal, P., & Agarwala, T. (2025). Green organizational culture: An exploration of dimensions. Global Business Review, 26(4), 1103-1126. https://doi.org/10.1177/09721509211049890
Al Masud, A., Islam, M. T., Rahman, M. K. H., Or Rosid, M. H., Rahman, M. J., Akter, T., & Szabó, K. (2024). Fostering sustainability through technological brilliance: a study on the nexus of organizational STARA capability, GHRM, GSCM, and sustainable performance. Discover Sustainability, 5(1), 325. https://doi.org/10.1007/s43621-024-00495-w
Akhtar, M. N., Ansari, E., Alhady, S. S. N., & Abu Bakar, E. (2023). Leveraging on advanced remote sensing-and artificial intelligence-based technologies to manage palm oil plantation for current global scenario: A review. Agriculture, 13(2), 504. https://doi.org/10.3390/agriculture13020504
Azhar, A., Rehman, N., Alyas, T., & Makki, B. I. (2025). AI adoption for green performance: An understanding of moderated mediation model. International Journal of Hospitality Management, 129, 104191. https://doi.org/10.1016/j.ijhm.2025.104191
Bell, E., Harley, B., & Bryman, A. (2022). Business research methods (6th ed.). Oxford University Press, Oxford, UK. https://doi.org/10.1093/hebz/9780198869443.001.0001
Benzidia, S., Makaoui, N., & Bentahar, O. (2021). The impact of big data analytics and artificial intelligence on green supply chain process integration and hospital environmental performance. Technological Forecasting and Social Change, 165,120557. https://doi.org/10.1016/j.techfore.2020.120557
Blumberg, B., Cooper, D., & Schindler, P. (2014). Business Research Methods (4th ed.). McGraw-Hill International (UK) Ltd.
Bougie, R., & Sekaran, U. (2025). Research Methods for Business: A Skill-Building Approach (9th ed.). John Wiley & Sons, Hoboken, NJ, USA.
Chaudhuri, R., Chatterjee, S., Mariani, M. M., & Wamba, S. F. (2024). Assessing the influence of emerging technologies on organizational data driven culture and innovation capabilities: A sustainability performance perspective. Technological Forecasting and Social Change, 200, 123165. https://doi.org/10.1016/j.techfore.2023.123165
Dawra, S., Pathak, V., & Sharma, S. (2024). Artificial Intelligence (AI) and Green Human Resource Management (GHRM) Practices: A Systemic Review. Green Management: A New Paradigm in the World of Business, 83-96. https://doi.org/10.1108/978-1-83797-442-920241006
Dinh, H. T., Nguyen, N. H., & Nguyen, A. N. (2026). Improving employee performance and sustainable performances: the influence of AI, green human resource management, and low-carbon behavior. Journal of Hospitality and Tourism Insights, 9 (5), 2240-2259. https://doi.org/10.1108/JHTI-07-2025-0864
Gusti, M. A., Lukito, H., Satrianto, A., & Prima, H. S. (2024). Effect of COVID-19 fear on nurse performance through insecurity and job satisfaction. Problems and Perspectives in Management, 22(1), 662. https://doi.org/10.21511/ppm.22(1).2024.52
Gusti, M. A., Satrianto, A., Juniardi, E., & Fitra, H. (2024). Artificial intelligence for employee engagement and productivity. Problems and Perspectives in Management, 22(3), 174. https://doi.org/10.21511/ppm.22(3).2024.14
Gusti, M. A., Satrianto, A., Juniardi, E., & Prima, H. S. (2025). Study on Hotel Environmental Performance as a Result of Green Practices and Spirituality. International Journal of Sustainable Development & Planning, 20(6). 2661-2669. https://doi.org/10.18280/ijsdp.200633
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). SAGE Publications, Thousand Oaks, CA, USA. https://doi.org/10.1007/978-3-030-80519-7
Hooi, L. W., Liu, M.-S., & Lin, J. J. J. (2022). Green human resource management and green organizational citizenship behavior: do green culture and green values matter? International Journal of Manpower, 43(3), 763-785. https://doi.org/10.1108/IJM-05-2020-0247
Hossain, M. I., Islam, M. T., Kumar, J., & Jamadar, Y. (2025). Harnessing STARA for enhancing green performance of hospitality industry: green HRM, employees commitment as mediators and psychological climate as moderator. Journal of Hospitality and Tourism Insights, 8(6), 2117-2139. https://doi.org/10.1108/JHTI-09-2024-1041
Hossain, M. I., Kumar, J., Islam, M. T., & Valeri, M. (2024). The interplay among paradoxical leadership, industry 4.0 technologies, organisational ambidexterity, strategic flexibility and corporate sustainable performance in manufacturing SMEs of Malaysia. European Business Review, 36(5), 639-669. https://doi.org/10.1108/EBR-04-2023-0109
John, J. E., & Pramila, S. (2023). Integrating AI Tools into HRM to Promote Green HRM Practices. International Conference on Information and Communication Technology for Competitive Strategies, 249-259. https://doi.org/10.1007/978-981-99-9489-2_22
Kim, M., Song, J., & Triche, J. (2015). Toward an integrated framework for innovation in service: A resource-based view and dynamic capabilities approach. Information Systems Frontiers, 17(3), 533-546. https://doi.org/10.1007/s10796-014-9505-6
Kim, Y. J., Kim, W. G., Choi, H. M., & Phetvaroon, K. (2019). The effect of green human resource management on hotel employees' eco-friendly behavior and environmental performance. International Journal of Hospitality Management, 76, 83-93. https://doi.org/10.1016/j.ijhm.2018.04.007
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of E-Collaboration (Ijec), 11(4), 1-10. https://doi.org/10.4018/ijec.2015100101
Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for Information Systems, 13(7), 546-580. https://doi.org/10.17705/1jais.00302
Li, L., & Lin, J. (2024). Digital transformation for the sustainable development of firms: The role of green capability and green culture. Sustainable Development, 32(3), 1861-1875. https://doi.org/10.1002/sd.2756
Li, X., & Bian, J. (2026). How does artificial intelligence technology affect ESG performance? Evidence from China. Sustainability Accounting, Management and Policy Journal, 17(1), 300-330. https://doi.org/10.1108/SAMPJ-03-2024-0272
Li, X., Liu, L., Li, X., & Wang, Z. (2026). Impact of Artificial Intelligence Technology on the Sustainable Development Performance of Agricultural Enterprises. Sustainability, 18(1), 431. https://doi.org/10.3390/su18010431
Limaho, H., Sugiarto, Pramono, R., & Christiawan, R. (2022). The need for global green marketing for the palm oil industry in Indonesia. Sustainability, 14(14), 8621. https://doi.org/10.3390/su14148621
Lin, J., Zeng, Y., Wu, S., & Luo, X. R. (2024). How does artificial intelligence affect the environmental performance of organizations? The role of green innovation and green culture. Information & Management, 61(2), 103924. https://doi.org/10.1016/j.im.2024.103924
Martilla, J. A., & James, J. C. (1977). Importance-performance analysis. Journal of Marketing, 41(1), 77-79. https://doi.org/10.1177/002224297704100112
Mensah, P. O., Yong, J. Y., Dura, C. C., & Mensah, H. K. (2025). Institutional networking capability as a catalyst for sustainable supply chains in the manufacturing sector of Ghana: The role of green human resource management strategy and green dynamic capability. Journal of Environmental Management, 387, 125865. https://doi.org/10.1016/j.jenvman.2025.125865
Mohaghegh, M., Blasi, S., & Groessler, A. (2021). Dynamic capabilities linking lean practices and sustainable business performance. Journal of Cleaner Production, 322, 129073. https://doi.org/10.1016/j.jclepro.2021.129073
Muisyo, P. K. (2021). Enhancing the FIRM'S green performance through green HRM: The moderating role of green innovation culture. Journal of Cleaner Production, 289,125720. https://doi.org/10.1016/j.jclepro.2020.125720
Ogbeibu, S., Emelifeonwu, J., Pereira, V., Oseghale, R., Gaskin, J., Sivarajah, U., & Gunasekaran, A. (2024). Demystifying the roles of organisational smart technology, artificial intelligence, robotics and algorithms capability: A strategy for green human resource management and environmental sustainability. Business Strategy and the Environment, 33(2), 369-388. https://doi.org/10.1002/bse.3495
Ogbeibu, S., Jabbour, C. J. C., Gaskin, J., Senadjki, A., & Hughes, M. (2021). Leveraging STARA competencies and green creativity to boost green organisational innovative evidence: A praxis for sustainable development. Business Strategy and the Environment, 30(5), 2421-2440. https://doi.org/10.1002/bse.2754
Ololade, O. O., & Rametse, P. P. (2018). Determining factors that enable managers to implement an environmental management system for sustainable construction: A case study in Johannesburg. Business Strategy and the Environment, 27(8), 1720-1732. https://doi.org/10.1002/bse.2237
Rahman, M. S., Bag, S., Gupta, S., & Sivarajah, U. (2023). Technology readiness of B2B firms and AI-based customer relationship management capability for enhancing social sustainability performance. Journal of Business Research, 156, 113525. https://doi.org/10.1016/j.jbusres.2022.113525
Rashid, A., Baloch, N., Rasheed, R., & Ngah, A. H. (2025). Big data analytics-artificial intelligence and sustainable performance through green supply chain practices in manufacturing firms of a developing country. Journal of Science and Technology Policy Management, 16(1), 42-67. https://doi.org/10.1108/JSTPM-04-2023-0050
Raza, M. W., Imran, M., Raza, M. A., Usman, S. M., & Malik, A. A. (2025). The Impact of Sustainable Leadership on Sustainable Performance: The Moderated Mediation of Green Organizational Culture and Organizational Commitment. Pakistan Journal of Commerce and Social Sciences, 19(3), 495-521. https://doi.org/10.64534/Commer.2025.514
Reis, C., Ruivo, P., Oliveira, T., & Faroleiro, P. (2020). Assessing the drivers of machine learning business value. Journal of Business Research, 117, 232-243. https://doi.org/10.1016/j.jbusres.2020.05.053
Ringle, C. M., & Sarstedt, M. (2016). Gain more insight from your PLS-SEM results: The importance-performance map analysis. Industrial Management & Data Systems, 116(9), 1865-1886. https://doi.org/10.1108/IMDS-10-2015-0449
Satrianto, A., Gusti, M. A., Candrianto, C., & Nurtati, N. (2023). The Role of Islamic Work Ethics and Organizational Citizenship Behavior in Green Human Resource Practices and Environmental Performance of Indonesian Food SMEs. International Journal of Sustainable Development & Planning, 18(8), 2393-2401. https://doi.org/10.18280/ijsdp.180810
Teece, D. J., Pisano, G., & Shuen, A. (2005). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Umrani, W. A., Channa, N. A., Ahmed, U., Syed, J., Pahi, M. H., & Ramayah, T. (2022). The laws of attraction: Role of green human resources, culture and environmental performance in the hospitality sector. International Journal of Hospitality Management, 103, 103222. https://doi.org/10.1016/j.ijhm.2022.103222
Vrontis, D., Christofi, M., Pereira, V., Tarba, S., Makrides, A., & Trichina, E. (2023). Artificial intelligence, robotics, advanced technologies and human resource management: a systematic review. The International Journal of Human Resource Management, 33(3), 1- 30. https://doi.org/10.4324/9781003377085-7
Wardhani, R., & Rahadian, Y. (2021). Sustainability strategy of Indonesian and Malaysian palm oil industry: A qualitative analysis. Sustainability Accounting, Management and Policy Journal, 12(5), 1077-1107. https://doi.org/10.1108/SAMPJ-07-2020-0259
