The determinants of green innovation Initiatives in lower-middle-income economies: A combination of SEM and NCA approaches

Drawing on the Ability–Motivation–Opportunity (AMO) and Social Exchange (SET) theories, the research objective is to investigate the contribution of green human resource management (GHRM) in promoting employees’ green innovation (GI) initiatives. This research also attempts to identify high competencies associated with GI initiatives within the workforce, taking into account green work engagement (GWE) as a mediator and green transformational leadership (GTFL) as the moderator. This work is one of the exceptional studies that concentrates on the nexus within GHRM, GWE, GTFL, and GI in the RMG industry in Bangladesh. Data were gathered using purposive sampling, with 422 employees from the readymade garment industry of Bangladesh surveyed. Partial least squares structural equation modelling (PLS-SEM) and necessary condition analysis (NCA) tested the hypothesised model. The outcomes of this work found that green HRM positively affects GWE and GI. Additionally, GWE was significantly related to GI. Accordingly, GWE mediates the effect of GHRM on GI. In accordance with the hypotheses of the AMO and SET, existing literature confirmed the moderating impact of GTFL on the indirect implication of GWE in the correlation between GHRM and GI. Using NCA, the empirical evidence also confirms that increasing the GHRM, GWE, and GTFL will improve GI. This work is unique and the first attempt to theorise and extend the adaptation of AMO as well as social exchange theories within the model of GHRM and GI. Therefore, with employee collaboration, organisational leaders must devise and execute new strategies to eradicate pollution, recycle trash, and advocate for environmental conservation.