Article Sidebar

Submitted
December 12, 2025
Accepted
February 24, 2026
Published
March 1, 2026
Download
PDF
Statistic
Read Counter : 26 Download : 7

Downloads

Download data is not yet available.

Main Article Content

Abstract

This study examines the role of Green Human Resource Management, Corporate Sustainability, and Management Control Systems on the competitive performance of companies listed in the LQ45 index in Indonesia. Using an explanatory quantitative approach, secondary data was collected from the annual and sustainability reports of 20 LQ45 companies over the period 2013–2023, resulting in 200 samples. The analysis was conducted using PLS-SEM to test the direct and moderating effects. The findings indicate that Corporate Sustainability has a strong and positive impact on competitive performance, supporting the view that sustainability-oriented strategies enhance market and financial outcomes. GHRM shows a significant but negative direct effect, indicating that green HR practices in LQ45 companies have not been strategically integrated and may increase short-term costs or inefficiencies. Management Control Systems have a direct positive effect on competitive performance. MCS plays a critical moderating role: it strengthens the relationship between GHRM and competitive performance, but weakens the effect of Corporate Sustainability when control mechanisms become too rigid. This result underscores the importance of aligning sustainability initiatives and green HR with appropriate management control systems to achieve superior competitive performance.

Keywords

Green Human Resource Management, Corporate Sustainability, Management Control Systems

Article Details

License

Copyright (c) 2026 Karsam Karsam

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Hak Cipta (Copyright)

Penulis yang mempublikasikan naskahnya pada Jurnal ini menyetujui ketentuan berikut:

Hak cipta pada setiap artikel adalah milik penulis.

  1. Penulis mengakui bahwa Jurnal  Current : Jurnal Kajian Akuntansi dan Bisnis Terkini berhak sebagai yang mempublikasikan pertama kali dengan lisensi Creative Commons Attribution 4.0 International License.
  2. Penulis dapat memasukan tulisan secara terpisah, mengatur distribusi non-ekskulif  dari naskah yang telah terbit di jurnal ini kedalam versi yang lain (misal: dikirim ke respository institusi penulis, publikasi kedalam buku, dll), dengan mengakui bahwa naskah telah terbit pertama kali pada Jurnal  Current :Jurnal Kajian Akuntansi dan Bisnis Terkini.
How to Cite
Karsam, K. (2026). GREEN HUMAN RESOURCE MANAGEMENT, SUSTAINABILITY, AND COMPETITIVE PERFORMANCE IN LQ45 FIRMS. CURRENT: Jurnal Kajian Akuntansi Dan Bisnis Terkini, 7(1), 198–214. https://doi.org/10.31258/current.7.1.198-214
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Bibliography
  2. Akroyd, C. (2025). Management control system stability and change in a global corporation : the role of cultural capital. 22(4), 401–429. https://doi.org/10.1108/QRAM-01-2022-0018
  3. Alam, S. (2025). Linking green manufacturing and frugal innovation : resource optimization as a driver. December. https://doi.org/10.1108/JMTM-01-2025-0083
  4. Al-dhubaibi, A. A. (2025). Harnessing the synergy of control mechanisms : enhancing management control system effectiveness through Simons ’ Levers of Control framework. December. https://doi.org/10.1108/IJPPM-08-2024-0558
  5. Alkaf, A. R., Yusliza, M. Y., Foster, B., Farooq, K., Ramayah, T., & Muhammad, Z. (2025). Green human resource management and sustainability : moderating role of absorptive capacity. 56(4), 290–310. https://doi.org/10.1108/ICT-02-2024-0013
  6. Almheiri, R. K., Jabeen, F., Kazi, M., & Santoro, G. (2025). Big data analytics and competitive performance : the role of environmental uncertainty , managerial support and data-driven culture. 36(5), 1071–1094. https://doi.org/10.1108/MEQ-08-2024-0361
  7. Alwali, J. (2025). Transformational leadership and moral norms : green human resource management. 63(5), 1417–1442. https://doi.org/10.1108/MD-09-2023-1682
  8. Ametepe, P. K., Obasi, N. P., & Nnaji, C. F. (2025). Green human resources management and corporate sustainability : a mediating role of leader support in the oil and gas industry. 2(2), 233–257. https://doi.org/10.1108/IIMTJM-02-2024-0020
  9. Angsoyiri, D., & John, J. (2025). Disclosure of environmental management strategies practices and corporate performance : does green governance structure matter ? December. https://doi.org/10.1108/JAL-02-2025-0075
  10. Anwar, S. U., & Hameed, M. (2025). Go Green ! Impact of green innovation on environmental sustainability and firm performance : green knowledge. https://doi.org/10.1108/VJIKMS-10-2024-0368
  11. Aryee, R., Adaku, E., Quayson, S., Quartey, E., & Amoakoh, M. N. (2025). The role of organisational citizenship behaviour and green human resource management in the relationship between circular economy practices and firm performance. December. https://doi.org/10.1108/IJOEM-12-2024-2074
  12. Asad, M., & Asif, M. U. (2025). Fintech adoption and sustainable performance of SMEs : moderated mediated analysis of technological. December. https://doi.org/10.1108/MSAR-10-2024-0183
  13. Azliani, N., & Che, H. (2025). Translation of the management control system in a privatised solid waste management network. December, 362–382. https://doi.org/10.1108/JAOC-08-2021-0100
  14. Bobe, B. J. (2025). Integrating total quality management and management control systems : a systematic literature review and proposed integrative framework. November. https://doi.org/10.1108/JAOC-10-2024-0337
  15. Brenner, M., Wald, A., & Gleich, R. (2025). Management control systems for process orientation : the role of diagnostic , interactive and cultural controls. December. https://doi.org/10.1108/BPMJ-06-2024-0477
  16. Bruno, T., Silva, D. J., Bau, C., Magro, D., Eduardo, C., & Lavarda, F. (2025). Management control systems and dynamic capabilities as antecedents to financial performance. 30(1), 57–74. https://doi.org/10.1108/EJMS-08-2023-0061
  17. Chatzoudes, D. (2025). The role of 3PL service quality : examining its antecedents and impact on customer relationships , supply chain performance. December. https://doi.org/10.1108/TQM-07-2024-0257
  18. College, G., & Ha, S. (2024). Green human resource management and sustainable performance : serial mediating role of green knowledge management and green innovation. December 2025. https://doi.org/10.1108/GKMC-03-2024-0127
  19. Data, P., & Dtmc, P. (2025). Viewpoint Talent management : team dynamics and. 33(5), 25–27. https://doi.org/10.1108/HRMID-06-2025-0148
  20. Demaret, J., & Molinari, M. (2025). How can management accounting and control systems facilitate compliance with sustainability reporting regulations ? 26(4), 829–846. https://doi.org/10.1108/JAAR-04-2024-0158
  21. Demaret, J., & Molinari, M. (2025). How can management accounting and control systems facilitate compliance with sustainability reporting regulations ? 26(4), 829–846. https://doi.org/10.1108/JAAR-04-2024-0158
  22. Dewasiri, N. J., Krishani, G. K., Shanika, M., Rathnasiri, H., Madu, H., Walakumbura, L., Sood, K., Dahanayaka, J., & Ruwandika, K. (n.d.). Culture , Corporate Social Responsibility and Organizational Competitive Performance : Evidence from the Sri Lanka Banking Sector. 51–66. https://doi.org/10.1108/978-1-83797-442-920241004
  23. Din, N. U., Zhu, Y., Li, J., & Ahmad, I. (2025). Integrating corporate social responsibility initiatives with green human resource management : how green knowledge sharing drives sustainable practices ? December. https://doi.org/10.1108/K-11-2024-3122
  24. Doghan, M. A. Al, Abdelwahed, N. A. A., Ramish, M. S., & Soomro, B. A. (2025). Linking Islamic business ethics to life satisfaction and financial performance : the intervening effects of employee relations climate and competitive strategy in the financial sector. December. https://doi.org/10.1108/JIABR-05-2025-0312
  25. Faezah, J. N., Yusliza, M. Y., Chaudhary, R., & Ramayah, T. (2025). Green human resource management and employee ecological behaviour : the mediating role of green commitment. 20(6), 1157–1176. https://doi.org/10.1108/SRJ-07-2023-0399
  26. Falc, J. M., Eduardo, S., & Mill, L. A. (2025). Green human resource management and green performance in the wine industry : the mediating role of employee well-being. 33(5), 985–1005. https://doi.org/10.1108/IJOA-10-2023-4051
  27. Ganguly, A. (2025). Enhancing circular supply chain performance through proper design : role of sustainability culture and absorptive capacity. December. https://doi.org/10.1108/IJLM-07-2024-0449
  28. Guerci, M., Longoni, A., & Luzzini, D. (2016). Employee-focused sustainability practices
  29. and employee performance: A moderated mediation model. Journal of Cleaner Production, 112, 1872–1883. https://doi.org/10.1016/j.jclepro.2015.06.128
  30. Gilal, F. G., Nawaz, A., Channa, K. A., & Jahanzeb, A. (2025). Achieving sustainability through green human resource management practices and environmental orientation fit : a multilevel modeling. 13(2), 299–318. https://doi.org/10.1108/EBHRM-09-2022-0223
  31. Ho, H. X., & Nguyen, P. D. (2025). Fostering sustainable supply chain performance : a mixed-method approach of the moderated mediation model involving learning orientation , innovation , agility , and. October. https://doi.org/10.1108/SCM-05-2025-0404
  32. Hosoda, M., & Toyosaki, H. (2025). Exploring the intersection of management control systems and gender equality : an integrative literature review. 25(5), 1096–1113. https://doi.org/10.1108/CG-05-2024-0307
  33. Hossain, M., & Islam, M. T. (n.d.). Transforming Human Resource Management into Green Human Resource Management Towards the Path of Sustainability : Through the Lenses of Just Transition Theory. 109–124. https://doi.org/10.1108/978-1-83608-650-520251006
  34. Hr, R. (2025). The importance of green human resource management. 33(5), 47–49. https://doi.org/10.1108/HRMID-07-2025-0189
  35. Jose Chiappetta Jabbour C (2011), "How green are HRM practices, organizational culture, c
  36. learning and teamwork? A Brazilian study". Industrial and Commercial Training, Vol. 43 No. 2 pp. 98–105, doi: https://doi.org/10.1108/00197851111108926
  37. Khan, F. U., Wang, Y., Zhang, L., & Anjum, M. A. (2025). Exploring the impact of the adoption of Green Lean Six Sigma practices on healthcare performance. December. https://doi.org/10.1108/IJLSS-10-2024-0227
  38. Khan, L., Ahmed, W., & Siddiqui, S. (2025). The role of social capital and entrepreneurial orientation in augmenting the firm ’ s risk-based competitive performance : evidence from the shipping industry. December. https://doi.org/10.1108/JEPP-03-2024-0027
  39. Le, T. T. (2025). Green human resource management and corporate social responsibility as drivers of organizational performance : mediating effects of employee engagement and corporate reputation in Vietnam. 16(3), 569–593. https://doi.org/10.1108/JGR-02-2024-0023
  40. Li, Z., Brien, C. O., & Owusu, P. (2025). Unlocking sustainable performance in Ghanaian firms with green human resource management , innovation and intellectual capital. December. https://doi.org/10.1108/MD-08-2024-1948
  41. Ludji, T. R. (2025). Contingency relationship between perceived environmental uncertainty and management control systems : Implications for innovation. December. https://doi.org/10.1108/JAOC-10-2024-0322
  42. Martínez-egea, C., Labella-fernández, A., & Martínez-bravo, M. (2025). Green human resource management and green innovation : the role of the knowledge creation process. December. https://doi.org/10.1108/JKM-05-2025-0736
  43. Miah, M. (2025). Effects of green human resource management practices on employee green behavior : the role of employee ’ s environmental knowledge management and green self-ef fi cacy for greening workplace. December. https://doi.org/10.1108/IJOA-04-2024-4462
  44. Mohammad, H. I., & Marcel, D. (2025). Strategic nature of corporate social responsibility , competitive performance , innovation capability. December. https://doi.org/10.1108/BIJ-09-2022-0548
  45. Mohanty, S. K. (2025). Does customer orientation mediate the relationship between knowledge-based dynamic capability and the competitive performance of SMEs in India ? 55(5), 1105–1125. https://doi.org/10.1108/VJIKMS-02-2023-0039
  46. Monther, U., & Sahan, H. (2025). Green human resource management , energy saving behavior and environmental performance : a systematic literature review. 19(1), 221–238. https://doi.org/10.1108/IJESM-01-2024-0013
  47. Murtaza, S. H., Hussain, K., Salman, A., & Mustafa, S. M. (2025). Exploring the nexus between green initiatives and hotel sustainable performance via circular economy practices. https://doi.org/10.1108/EJMBE-02-2025-0077
  48. Nations, U., & Development, S. (2025). Guest editorial : The role of accounting and management control systems ( MCS ) in organisations ’ sustainability performance. 26(4), 788–792. https://doi.org/10.1108/JAAR-08-2025-489
  49. Nations, U., & Development, S. (2025). Guest editorial : The role of accounting and management control systems ( MCS ) in organisations ’ sustainability performance. 26(4), 788–792. https://doi.org/10.1108/JAAR-08-2025-489
  50. Rahim, A. (2025). Conceptualizing the drivers of sustainable competitive advantage : a qualitative exploration on fintech adoption , sustainability performance and employee green behavior. December. https://doi.org/10.1108/QRFM-09-2024-0261
  51. Saleh, I., Koliby, A., & Al-hakimi, M. A. (2025). Unveiling the linkages between entrepreneurial culture , innovation capability , digital marketing capability and sustainable competitive performance of manufacturing SMEs : evidence from emerging countries. 37(4), 473–500. https://doi.org/10.1108/BL-08-2023-0241
  52. Saleh, I., Koliby, A., Al-hakimi, M. A., & Suki, N. M. (2025). Enhancing green innovation through knowledge management : the role of total quality management. December. https://doi.org/10.1108/GKMC-09-2024-0650
  53. Seo, J. Y., & Cordeiro, J. J. (2025). Corporate green reputations and environmental performance : an analysis of the Newsweek ’ s green rankings data. 48(9), 1405–1429. https://doi.org/10.1108/MRR-03-2025-0169
  54. Shah, M. (2025). Strategising sustainability : a scientific management framework for green human resource practices. December. https://doi.org/10.1108/IJOA-09-2025-5928
  55. Sharif, S., & Malik, S. A. (2025). A paradigm shift to carbon credit success : transforming workplace creativity via innovative green human resource management and eco-friendly behaviors. December. https://doi.org/10.1108/IJIS-09-2024-0254
  56. Susitha, E. (2025). Threading the digital needle : the influence of process and technical digitalisation on competitive performance in the apparel supply chain. December. https://doi.org/10.1108/SCM-05-2025-0476
  57. Taamneh, M. M., Al-okaily, M., Abudoleh, J. D., & Albdareen, R. (2025). Nexus between green human resource management practices and corporate social responsibility : does transformational leadership make di ff erence ? 33(1), 1–24. https://doi.org/10.1108/IJOA-08-2023-3903
  58. Tessema, D. H., & Yesilada, F. (2025). Enhancing pro-environmental behavior through green human resource management practices : evidence from Ethiopian. December. https://doi.org/10.1108/JHOM-12-2024-0519
  59. Thai, H. V., & Thao, H. T. (2025). Propelling sustainable competitive performance in the digital age : the nexus of dynamic managerial capabilities , stakeholder engagement , and corporate. 48(11), 1529–1559. https://doi.org/10.1108/MRR-12-2024-0968
  60. Thi, N., Nguyen, T., Nguyen, P. V, Thi, H., & Huynh, N. (2025). Leveraging sustainable performance through government policy and green human resource management : the interplay of green transformational leadership and employee commitment. December. https://doi.org/10.1108/IJOA-12-2024-5096
  61. Verploegh, R. F., Budding, T., & Wassenaar, M. (2025). The relationship between management control systems and strategy : how management control systems are designed and used in the public policy context of Dutch ministries. December. https://doi.org/10.1108/JPBAFM-01-2025-0002
  62. Vu, T. D. (2025). Sustainable management in the hospitality industry : the influence of green human resource management on employees ’ pro-environmental behavior and. December. https://doi.org/10.1108/JHTI-09-2024-0912
  63. Wei, S., & Wang, L. (2025). Environmental leadership and green intellectual capital : the roles of green human resource management and environmental climate. December. https://doi.org/10.1108/JIC-11-2023-0260
  64. Wolor, C. W., Ali, M., & Rababah, I. (2025). Building competitive advantage and environmental performance through green human resource management in MSMEs. December. https://doi.org/10.1108/MSAR-01-2025-0010
  65. Wu, H., & Li, J. (2023). The relationship between environmental disclosure and financial performance: mediating effect of economic development and information penetration. Economic Research-Ekonomska Istraživanja, 36(1), 116–142. https://doi.org/10.1080/1331677X.2022.207235
  66. Yang, J. J., & Akroyd, C. (2025). Accounting for purpose : traditional Chinese philosophies and management control systems in Chinese companies. 33(4), 1173–1195. https://doi.org/10.1108/MEDAR-06-2024-2507
  67. Yang, K. (2025). Exploring the effect of sustainable supply chain initiatives dimensions on sustainability performance : the mediating role of reverse logistics. December. https://doi.org/10.1108/APJML-02-2025-0343
  68. Yong, J. Y., Yusliza, M. Y., Ramayah, T., Chiappetta Jabbour, C. J., Sehnem, S., & Mani, V.
  69. (2020). Pathways towards sustainability in organizations: Empirical evidence on the role of green human resource management. Business Strategy and the Environment, 29(1), 212–228. https://doi.org/10.1002/bse.2359
  70. Zaki, K., & Elnagar, A. K. (2025). Unpacking talent management : a moderated mediation analysis of team dynamics and competitive. December. https://doi.org/10.1108/ER-02-2024-0114
  71. Zhou, X., Wang, J., Guo, Y., & Niu, M. (2025). The impact of green human resource management on employee green innovative behavior : role of environmental enthusiasm and organizational innovation support perception. December. https://doi.org/10.1108/ER-10-2024-0608