The intersection of ecological leadership and GHRM: A blueprint for a circular economy

Abstract

The circular economy now plays a crucial role in addressing ecological challenges. The exact function of green human management (GHRM) in transitioning to a circular economy has yet to be determined. Manufacturing firms are taking steps to enhance their sustainability practices to support the circular economy. The relationship between organizational green actions and GHRM in the transition to a circular economy remains uncertain. This study intends to discover the relationship among manufacturing firms’ ecological leadership, green HR practices, green innovations, and circular economy models to enhance sustainable performance. 234 survey questionnaires from Pakistani small and medium-sized manufacturing industries were evaluated using structural equation modelling with partial least squares. GHRM had a positive and significant impact on circular economy and green innovation actions, as shown by the findings. This framework is specifically designed for manufacturing SMEs in Pakistan. The architecture can be adapted to different industries with minor modifications. The study may be biased due to its reliance on management and specialists. This study’s findings will significantly contribute to human resources managers and SME owner-managers by clarifying the significance and interplay of essential green innovation components and GHRM. This will enlighten awareness of ecological leadership, circular economy, and GHRM practices for sustainable performance. The proposed framework simplifies the connection between ecological leadership, GHRM components, and circular economy for practitioners and decision-makers. Environmental leaders effectively encourage businesses to invest in proactive environmental strategies, lower pollution control, and enhance the performance of green innovation, all while promoting a green image and advancing environmental protection practices. This study determines the appropriate relationship between ecological leadership, circular economy, and GHRM components in the limited Pakistani manufacturing SME environment.