Effects of Green Human Resource Management and Green Transformational Leadership towards Employee Sustainable Performance through Employee Green Behavior at Mercu Buana University

This study aims to analyze the effect of green human resource management and green transformational leadership on employee sustainable performance through employee green behavior. This type of research uses a survey method with a quantitative approach. This research was conducted at Mercu Buana University. Sampling using a proportionate stratified random sampling technique with a sample size of 252 people. Data analysis in this study used structural equation modelling (SEM) with partial least square (PLS) software version 3.3.3. The results obtained in this study: (1) Green human resource management has a positive and significant effect on employee sustainable performance; (2) Green transformational leadership has a positive and significant effect on employee sustainable performance; (3) Employee green behavior has a positive and significant effect on employee sustainable performance; (4) Green human resource management has a positive and significant effect on employee green behavior; (5) Green transformational leadership has a positive and significant effect on employee green behavior; (6) Employee green behavior mediates the influence of green human resource management on employee sustainable performance (7) Employee green behavior mediates the influence of green transformational leadership on employee sustainable performance.

Introduction

Numerous environmental problems in Indonesia still require work to be done. Employee behavior in the higher education sector is crucial for preventing environmental damage and achieving good environmental performance, both of which have an impact on society. Universities are generally less polluting than industry, but they nevertheless have a big role to play in environmental awareness, research, and teaching current and future generations the value of environmentally friendly behavior.

The university’s academic staff and lecturers’ dedication and participation are key components in institutionalizing environmental sustainability measures. It is crucial for academic staff to be capable and available if higher education institutions are to foster a sustainable atmosphere for learning. Because of their expertise, technical abilities, and close ties to the institution’s management and students at the bottom, academic staff play a crucial role in the growth of the campus’ sustainability.

Fig. 1 shows that KPI Mercu Buana University employees have fluctuated over the past five years. Based on the KPI data, Mercu Buana University employees have fluctuated over the past five years. Based on the KPI data, in fact, there are still more than 10% of employees who have performance below expectations. Thus, the researcher is interested in examining the effect of green human resource management and green transformational leadership on employee sustainable performance through employee green behavior.

Fig. 1. Key performance indicator (KPI) of Mercu Buana University employees.

Literature Review

Theoretical Review

Green Human Resource Management

Green human resource management (GHRM) is a corporate policy aimed at sustainable human resource management by integrating environmental considerations into environmentally friendly business operations (Sutawidjayaet al., 2022). Green human resource management (GHRM) is an evolution of human resource management (HRM), also referred to as human resource management in Indonesia. HRM is a policy and practice needed by someone who handles human resource-related tasks like hiring, screening, training, and awarding rewards.

Green Transfromational Leadership

Du and Yan (2022) explain that transformational leadership is by influencing followers’ self-confidence, self-efficacy, and self-esteem. Transformational leadership is characterized as a leadership style built on trust and commitment that favorably affects followers’ motivation, sense of self, and ability to achieve their goals. According to Robertson and Barling (2017), the dimensions of green transformational leadership are green idealized influence, green inspirational motivation, green intellectual stimulation, and green individualized consideration.

Employee Green Behavior

Safariet al. (2018) describe green employee behavior as green behavior resulting from a personal initiative that exceeds organizational expectations. Such behavior includes prioritizing the environmental benefits of political programs and activities and encouraging others to do so. According to Ones and Dilchert (2012), the dimensions of employee green behavior are a concern for the environment, task control, efficiency, positive behavioral intention, and motivation.

Employee Sustainable Performance

According to Jianget al. (2017), employee sustainable performance, which is broken down into ongoing performance tasks and connections with sustainable performance, refers to the contributions of employees to their personal sustainable development, initiatives, and sustainable organizational development. According to Minet al. (2020), the measurement of employee sustainable performance can be done through the dimensions of conceptual performance and adaptive performance.

Hypothesis Development

H₁: The influence of green human resource management on employee sustainable performance.

H₂: The influence of green transformational leadership on employee sustainable performance.

H₃: The influence of employee green behavior on employee sustainable performance.

H₄: The influence of green human resource management on employee green behavior.

H₅: The influence of green transformational leadership on employee green behavior.

H₆: The influence of green human resource management on employee sustainable performance through employee green behavior.

H₇: The influence of green transformational leadership on employee sustainable performance through employee green behavior.

Methods

Research Design

This type of research uses quantitative primary data in the form of surveys. The independent variables of this study are green human resources management and green transformation leader employees’ green behavior as a mediator, and the dependent variable of employees’ sustainable performance.

Population and Sample

The population used in this study was 679 employees of Mercu Buana University. The present study used the probability sampling technique. Meanwhile, to determine the sample of research subjects, a proportionate stratified random sampling technique was used. The sample to be taken using the Slovin formula is 252 people. The employee population is divided into two parts, namely lecturers and education staff.

Data Collection Methods

Literature reviews, interviews, and questionnaires are all used in this study. Both primary (from the questionnaire) and secondary (from books, journals, papers, KPI data, and CO2 intensity) data were gathered for this study. The Likert scale is used in this study.

Data Analysis Techniques

Data analysis used in this study is structural equations based on components or variances. When processing data with version 3.3.3 of Partial Least Square (Smart-PLS), the outer model and the inner model are the two models used in PLS Path Modeling.

Results and Discussion

Outer Model

Fig. 2 depicts the inner model tested in this study with its paths and coefficients.

Fig. 2. Testing the inner model—path coefficient.

Convergent Validity

The test for convergent validity is the value of factor loading on the underlying variable with its indicators. The general guideline for assessing convergent validity is a loading factor > 0.7. According to the measurement model provided, all indicators for each variable have a loading factor value of > 0.7. Therefore, it can be inferred that all indicators for the variables are valid and should be retained in the model without exclusion.

Average Variance Extracted (AVE)

An estimate of convergent validity can be seen from an average variance (AVE) value > 0.50 (Abdillah & Hartono, 2015).

It is known that every variable in Table I has an AVE value greater than 0.5. As a result, every variable in this study complied with the criteria for good convergent validity.

Table I. Average Variance Extraction

Variable	AVE value
Green human resource management	0.756
Green transformational leadership	0.694
Employee green behavior	0.880
Employee sustainable performance	0.682

Cronbach’s Alpha and Composite Reliability

Based on the data in Table II, we can conclude that the model has met the criteria for composite reliability and Cronbach's alpha. A construct is deemed dependable if its composite reliability value is greater than 0.7 and its Cronbach’s Alpha is greater than 0.60 (Ghozali & Latan, 2015).

Table II. Cronbach Alpha and Composite Reliability (CR)

Variable	Cronbach’s alpha	Composite reliability	Result
Green human resource management	0.975	0.972	Reliable
Green transformational leadership	0.953	0.943	Reliable
Employee green behavior	0.986	0.984	Reliable
Employee sustainable performance	0.937	0.918	Reliable

Evaluation of the Structural Model (Inner Model)

The R² value of the employee green behavior (Y₁) variable is 0.266 (see Table III). This shows that 26.6% of employee green behavior (Y₁) can be influenced by Green human resource management (X₁) and green transformational leadership (X₂), and the remaining 73.4% is influenced by other variables outside this study.

Table III. Simultaneous Effect Testing Results (R-squared)

Construct	R-squared
Employee green behavior	0.266
Employee sustainable performance	0.508

The R² value of the employee sustainable performance (Y₂) variable is 0.508. This shows that 50.8% of the variable of employee sustainable performance (Y₂) can be influenced by green human resource management (X₁) and green transformational leadership (X₂) variables, and the remaining 49.2% is influenced by other variables outside this study.

Research Hypothesis Testing

Hypothesis testing in this study is as follows:

Effect of Green Human Resource Management on Employee Sustainable Performance

Green Human Resource Management is a variable that influences Employee Sustainable Performance for Mercu Buana University Jakarta employees. This shows that the better the implementation of Green Human Resource Management by Mercu Buana University Jakarta, the better Employee Sustainable Performance will be. Hence, hypothesis H₁ is confirmed in this study, “Green human resource management has a positive and significant effect on employee sustainable performance” is accepted.

Effect of Green Transformational Leadership on Employee Sustainable Performance

Green transformational leadership is a variable that influences employee sustainable performance for Mercu Buana University Jakarta employees. A transformational leader changes the thinking of followers in such a way that they adopt the vision of the organization as if it were their own. This transformation motivates employees to transcend their own interests and strive for common goals. Hence, hypothesis H₂ is confirmed in this study, “Green transformational leadership has a positive and significant effect on employee sustainable performance” is accepted.

Effect of Employee Green Behavior on Employee Sustainable Performance

Employee green behavior is a variable that influences employee sustainable performance for Mercu Buana University Jakarta employees. This shows that better employee green behavior will further improve employee sustainable performance. Hence, hypothesis H₃ is confirmed in this study, “Employee green behavior has a positive and significant effect on employee sustainable performance” is accepted.

Effect of Green Human Resource Management on Employee Green Behavior

Green human resource management is a variable that influences employee green behavior among Mercu Buana University Jakarta employees. This shows that the better green human resource management is implemented, the more green employee behavior will increase. Hence, hypothesis H₄ is confirmed in this study, “Green human resource management has a positive and significant effect on employee green behavior” is accepted. Based on the data from Tables IV and V, the research hypothesis testing can be explained as follows:

Table IV. Influence of Independent Variables on Dependent Variables

Variable	Original sample	t-statistic	p-value	Result
GHRM→ESP	0.307	4.475	0.000	Accepted
GTL→ESP	0.171	2.984	0.001	Accepted
EGB→ESP	0.425	7.062	0.000	Accepted
GHRM→EGB	0.451	6.157	0.000	Accepted
GTL→EGB	0.169	2.640	0.004	Accepted

Table V. Simultaneous Effect of Independent Variables on the Dependent Variable

Variable	Original Sample	t-statistic	p-value	Result
GHRM→EGB→ESP	0.192	4.813	0.000	Accepted
GTL→EBG→ESP	0.072	2.445	0.007	Accepted

Effect of Green Transformational Leadership on Employee Green Behavior

Green Transformational Leadership is a variable that influences Employee Green Behavior among Mercu Buana University Jakarta employees. This shows that the better the green transformational leadership that is implemented, the more green employee behavior will increase. Hence, hypothesis H₅ is confirmed in this study, “Green transformational leadership has a positive and significant effect on employee green behavior” is accepted.

Effect of Green Human Resource Management on Employee Sustainable Performance through Employee Green Behavior

Green employee behavior can mediate the effect of green human resource management on employee sustainable performance at Mercu Buana University Jakarta employees. When green human resource management is going well, it will form green employee behavior in every employee that will encourage employees to achieve sustainable employee performance. Hence, hypothesis H₆ is confirmed in this study, “Green human resource management has a positive and significant effect on employee sustainable performance through employee green behavior” is accepted.

Effect of Green Transformational Leadership on Employee Sustainable Performance through Employee Green Behavior

Employee green behavior can mediate the effect of green transformational leadership on employee sustainable performance at Mercu Buana University Jakarta employees. When green transformational leadership goes well, it will shape employee green behavior in each employee, which will encourage employees to achieve sustainable employee performance. Hence, hypothesis H₇ is confirmed in this study, “Green transformational leadership has a positive and significant effect on employee sustainable performance through employee green behavior” is accepted.

Conclusions and Suggestions

Conclusions

Based on the findings of the research, the following conclusions were drawn:

1. Green human resource management has a positive and significant effect on employee sustainable performance.
2. Green transformational leadership has a positive and significant effect on employee sustainable performance.
3. Employee green behavior has a positive and significant effect on employee sustainable performance.
4. Green human resource management has a positive and significant effect on employee green behavior.
5. Green transformational leadership has a positive and significant effect on employee green behavior.
6. Green human resource management has a positive and significant effect on employee sustainable performance through employee green behavior.
7. Green transformational leadership has a positive and significant effect on employee sustainable performance through employee green behavior.

Suggestions

Suggestions for Companies

Create an Employee Recruitment Website

With the design of a recruitment website Information System at Mercu Buana University, it is hoped that it can facilitate the process of recruiting new employees, provide the latest information about existing job vacancies, and it is hoped that the company can select prospective new employees who are competent in their fields.

Use “Green” Products during the Hiring and Interviewing Process

Mercu Buana University can integrate green goals into the candidate’s recruitment experience in the following ways: Consider using green e-mail when corresponding with candidates. Green e-mail refers to e-mail services that use only renewable energy to run their services. Using eco-friendly e-mail services helps save resources and protect the environment.

Green Training Program

In addition to educational activities, all employees (not just those in the environmental department) should receive green training. Green training increases employee understanding of environmentally friendly business practices.

Green Leaders Program

This program is intended for prospective leaders of Mercu Buana University who come from various backgrounds who really care about environmental issues. The Green Leaders Training Program can take the form of educational methods such as interactive discussions, FGDs, skill sharing, and policy dialogue with several leaders who have received green leadership awards.

Create a “Green Rewards” Application

The green rewards application is an interactive program to provide rewards and awards for behavior that increases sustainability to all education staff, lecturers and students at the University; where in the application, each team/unit will be able to compete as part of a team to get Green Points for green actions which have been done.

Required Employee Green Behavior

The management of Mercu Buana University can shape green behavior into an obligation to improve environmentally friendly environmental performance by introducing it as a job and main task.

Give Reward and Punishment

Researchers suggest that all management levels of Mercu Buana University must pay attention to sustainable employee performance, especially by cultivating sustainable initiatives for every employee of Mercu Buana University. Mercu Buana University must provide rewards or forms of support to employees when employees carry out initiatives related to sustainability.

Creating an Adaptive Corporate Culture

An adaptive corporate culture will support a positive psychological environment and ensure employees are more stress-resistant. Adaptive corporate culture greatly influences trust, commitment, motivation, kinship, concentration, and social involvement. Adaptive culture can be driven through company goals, vision, cultural values, corporate values, and architecture.

Suggestions for Further Research

1. The results of the R-squared test show that 50.8% of the employee sustainable performance variable can be influenced by the green human resource management variable and the green transformational leadership variable. This shows that there is another variable of 49.2%, which was not examined in this study. So that further research is suggested to dig deeper into other variables that can influence employee sustainable performance, such as supervisory behavior, OCBE, and cognitive liveliness. It is hoped that the research results can be more comprehensive, obtain broader results, and enrich insights.
2. This research was only conducted in the education sector. Therefore, future researchers are expected to be able to further examine the effect of green human resource management and green transformational leadership on employee sustainable performance through employee green behavior in other business sectors.