The Impact Of Green Technology Adoption And Green HRM On Operational Efficiency: Evidence From Pakistan's Textile Manufacturing Sector

Abstract

The Pakistani textile industry is facing challenges in achieving operational efficiency (OE hereafter). This is due to increased resource wastage and environmental concerns. This study examined the adoption of green technology (GTA hereafter) and its impact on a firm's OE. This study also accounted for the role of green human resource management practices (GHRM hereafter) and gender diversity (GD hereafter). Using a quantitative method, 380 structured survey questionnaires were distributed among managers of textile companies in Lahore, Pakistan. We employed a structural equation modeling approach to investigate the relationship between variables. The results of this study suggest that adopting green technologies can enhance the OE of the Pakistani textile industry. Moreover, Green HRM practices successfully mediate this relationship positively. Furthermore, recent literature indicates that GD does not influence the OE of the firm, nor does it moderate the relationship between the GTA and OE. The study suggests that textile firms should prioritize and adopt green technologies, as well as implement GHRM practices, to enhance their OE. These practices not only improve performance but also help companies contribute to environmental betterment.