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Green Leadership and HRM: Mediating Impact of Green Psychological Climate on Employee Engagement

In: Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)

Author

Listed:
  • Hartati Br Nainggolan

    (Hasanuddin University)

  • Mursalim Nohong

    (Hasanuddin University)

Abstract

This study investigates the relationship between green-oriented human resource practices, transformational leadership, and employee engagement in the sustainable banking sector of Eastern Indonesia, with Green Psychological Climate (GPC) serving as a mediating mechanism. Grounded in the Ability–Motivation–Opportunity (AMO) framework and Social Learning Theory, the research examines how Green Recruitment and Selection (GRS), Green Training and Development (GTD), and Green Transformational Leadership (GTL) influence employees’ perceptions of a supportive environmental climate and, subsequently, their engagement in green initiatives. Data were obtained from a survey of 107 staff members of commercial banks across Eastern Indonesia, representing both medium- and lower-level employees from provinces including Maluku, Papua, West Papua, East Nusa Tenggara, and North Maluku. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that GRS, GTD, and GTL significantly enhance GPC, which, in turn, strongly predicts Green Employee Engagement (GEE). These findings highlight the strategic role of HRM and leadership in shaping a sustainable organisational climate that fosters active employee participation in environmental practices. The study contributes to theory by extending AMO and Social Learning frameworks into the green banking context and offers practical recommendations for banking institutions seeking to strengthen their sustainability performance. Limitations and directions for future research are also discussed to encourage further investigation in diverse organisational and regional contexts.

Suggested Citation

  • Hartati Br Nainggolan & Mursalim Nohong, 2026. "Green Leadership and HRM: Mediating Impact of Green Psychological Climate on Employee Engagement," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Rianda Ridho Hafizh Thaha & Muhammad Try Dharsana & Andi Tenri Harahap & Fakhrul I (ed.), Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), pages 2038-2052, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_142
    DOI: 10.2991/978-94-6239-709-5_142
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