CAN SUSTAINABILITY ORIENTATION AND HRM PRACTICES IMPACT ENTERPRISES’ PERFORMANCE?
DOI:
https://doi.org/10.35631/IJEMP.934026Keywords:
Human Resources Management Practices, NRBV, Performance, Service Firms, Sustainability OrientationAbstract
In the post-COVID-19 era, organizations are experiencing significant changes in performance and activities. Leaders are reassessing their firms’ resources, including employees, and carefully examining factors that could affect performance positively. In this article, sustainability orientation (SO) and human resources management practices (HRMPs) are proposed since they are expected to have a significant role in changing enterprises’ directions. However, literature does not provide much with the impact of sustainability orientations on people practices, and how these variables affect performance. In particular, studies have yet to provide an explanation of their relationships comprehensively, mainly across the service sector in the Arabic context. Therefore, the paper's objective is to examine employees' and seniors’ sustainability orientation influence on HRMPs, and how these practices might influence performance. Moreover, it aims to find out whether or not these activities can give an explanation of the association between sustainability orientation and performance by relying on the natural resource-based view (NRBV), since it can offer further and deeper clarification. A quantitative method is adopted in order to respond to the goal of this paper. The data of this paper were collected through questionnaires given to workers and supervisors of service firms in Saudi Arabia. A simple random technique is used. AMOS and SPSS were chosen for analyzing and scrutinizing 143 usable questionnaires. The findings illustrate that employees’ sustainability orientations affect human resources practices, and these practices influence performance. Further, HRMPs (i.e., empowerment, security, and participation) mediate such orientations and performance dimensions (i.e., quality, image, productivity, and revenue). The results contribute on sustainability and performance fields due to providing empirical evidence. Furthermore, supervisors and managers can be aware of the main reasons that impact their company’s performance.
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