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Manuscript_b28827b02f0265563be74ba78bc31904

Green Human Resource Management Practices and Environmental Performance in

Malaysian Green Hotels: The role of Green Intellectual Capital and Pro-Environmental
Behavior

Qasim Ali Nisar, Ph.D.

Assistant Professor
Faculty of Business and Management Sciences
The Superior College Lahore
E-mail: qasimalinisar@yahoo.com

Shahbaz Haider
Ph.D. Candidate
School of Business Management
University Utara Malaysia
University Utara Malaysia, Sintok. Malaysia
E-mail: Shahbazhaider199@gmail.com

Faizan Ali, Ph.D.

Assistant Professor
School of Hospitality and Tourism Management
University of South Florida
8350 N. Tamiami Trail, Sarasota, FL 34243
Email: faizanali7@hotmail co.uk

Samia Jamshed, Ph.D.

Assistant Professor
Faculty of Business and Management Sciences
The Superior College Lahore
E-mail: samiajamshed@gmail.com

Kisang Ryu, Ph.D.*

Professor
Department of Food Service Management
College of Hospitality and Tourism Management
Sejong University
E-mail: kryu11@sejong.ac.kr

Sonaina Saif Gill

Ph.D. Candidate
School of Business Management
University Utara Malaysia
Block B Tradewinds, University Utara Malaysia, Sintok
Email: Sonainasaif9@gmail.com

*Corresponding author

© 2021 published by Elsevier. This manuscript is made available under the Elsevier user license
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Abstract
This study examines the role of green human resource management practices towards the
environmental performance of green hotels in Malaysia. It also investigates the mediating
effect of green intellectual capital and pro-environmental behavior. The target population
consisted of employees of green hotels in Malaysia. Data collected using a survey
questionnaire from 374 employees was subjected to PLS-SEM for analysis. The finding that
green human resource practices (green training & development and green discipline
management) are significant predictors for green intellectual capital further contributes
positively towards pro-environmental behavior. Findings also proved that employees’ pro-
environmental behavior plays a significant role to enhance the environmental performance of
hotels. Moreover, it is shown that green human resource management practices indirectly
contribute to environmental performance through green intellectual capital and pro-
environmental behaviors. This study is one of the few attempts to integrate the green human
resource management practices with green intellectual capital and pro-environmental
behaviors in the domain of environmental management. It explicitly contributes towards a
new line of research to understand the crucial role of green human resource practices to
improve the environmental performance of hotels. The study findings have postulated green
training and development as a key practice to build intellectual capital and foster pro-
environmental behaviors. It can facilitate managers in their effort to build the intellectual
capital that facilitates to generate pro-environmental behaviors. In order to cope with the
rising environmental concerns of the hotel industry, the present study suggests that managers
should maintain green discipline by punishing or fining employees for not observing the
environmental policy of hotels.

Keywords: Green human resource management, green intellectual capital, pro-environmental

behaviors, environmental performance.

1. Introduction
That last six decades proved to be beneficial for tourism as it resulted in 1.5 billion
international arrivals in 2019, which represents an approximate 3.8% year-on-year increase.
Notably, spending on global tourism increased from 495 billion USD to 1.5 trillion USD, and
it also accounted for the 7% exports in goods and services (United Nations World Tourism
Organization, 2019). Consequently, room occupancy and room revenue also increased due to
increased international tourism. Smith Travel Research (STR, 2019) reported an increase in
the revenue per available room in the United States for 10 years in a row. The European
hospitality industry experienced slower revenue per available room, the Middle East has been
on a downward trend for six consecutive years since the 2014 drop in oil prices, Africa
enjoyed a positive rooms revenue per available room, and the Asia Pacific reported a drop in
rooms revenue per available room along with a drop in occupancy as well, indicating a
growth trend in above-mentioned regions.
Similar situations also prevail in Malaysia. It is famous for tourism among the other countries
in the South Asia region (Amin, 2013). As per the statistics of Tourism Malayisa (2020), the
number of tourists touring Malaysia is increasing, and over 2.6 million tourists visited
Malaysia in 2019, resulting in 86.1 million ringgit receipts. Similarly, with the increase in
tourism, the hoteling industry has also grown, which resulted in an increase in the number of
hotels from 4512 (2017) to 4750 (2018) (My Tourism Data, 2020b). In addition, room
availability has also increased from 292.29K in 2017 to 308.21K in 2018 (My Tourism Data,
2020a). Moreover, room occupancy also ranged from 31% to 78.8% in different states of
Malaysia. The above-mentioned statistics speak for themselves regarding the growth of the
hotel industry in Malaysia. Moreover, the Malaysian tourism industry significantly
contributes to the economic growth of Malaysia (Mohammed & Rashid, 2018), and it is
highly supported by the government as a strategy to move towards long-run economic
development in 2020 (Yadegaridehkordi et al., 2020). Particularly, tourism and hospitality
are regarded as the most favorable Malaysian sectors regarding growth as it has a
contribution of approximately 20 billion USD towards the gross domestic product (Bhuiyan,
Siwar, & Ismail, 2013).
However, with the phenomenal growth of the hotel industry over the years, hotels are also
facing pressure to be responsible towards the environment by paying appropriate attention
and adopt eco-friendly activities that are not harmful to the environment. The pressure to
become eco-friendly is stronger in hotels as they are directly responsible for environment-
related issues such as water, energy, and waste (Graci & Kuehnel, 2011). Hotels are being
pressured to improve their environmental performance due to their waste generation. The
hotel industry resulted in environmental issues in different ways, and evidence in this regard
is also available. For instance, Hoang, Fujiwara, and Phu (2017) reported that 0.35
Kg/room/day to 4 Kg/room/day ranged from small to a 4-star hotel in Hoi, Vietnam. On the
other hand, Otoma, Hoang, Hong, Miyazaki, and Diaz (2013) also reported 89.72
Kg/hotel/day to 0.95 Kg/room/day waste generation in Danang Vietnam. A similar situation
also prevails in Malaysia as well. A recent study has reported that the tourism and hotel
industry proved to be economically beneficial for Malaysia and considered the second-largest
sector to contribute to GDP after the manufacturing sector. But the growth of the tourism and
hotel industry has also posed a threat to the nature if it is not appropriately managed
(Abdulaali, Usman, & Al-Ruwaishedi, 2019).
Hospitality is among the major industries that utilizes a considerable proportion of natural
resources and also results in the production of massive amounts of wastes and pollutants as
well (Nilashi, Ahani, et al., 2019; Nilashi, Mardani, et al., 2019). The above statistics reveal
that it has heavily contributed to the global and Malaysian economic context. However, the
phenomenal growth of the hospitality industry resulted in several environmental challenges
such as environmental degradation globally as hotels are responsible for higher consumption
of energy, water for heating, cooling, and lighting (Abdou, Hassan, Dief, & Moustafa, 2020).
Therefore, in an attempt to positively contribute to the environment, the hotel industry is
adopting green human resources management, and by adopting such practices it aims to
create a win-win situation for the hotels and stakeholders. It warrants more research in the
domain of green HRM practices and how do they contribute towards environmental
performance, particularly in the context of the hotel industry (Yusoff, Nejati, Kee, & Amran,
2018a).
Previously, studies in the Malaysian context have reported that the hotel industry accounts for
high water and energy consumption along with producing tons of waste that negatively
influences the environment (Yusof & Jamaludin, 2013). Notably, the hotel industry is
harmful to the environment, and 75% of its negative influence is due to the excessive
utilization of consumables, energy, and water (Mohamad, Arifin, Samsuri, & Munir, 2014). It
seems that the Malaysian hotel industry is well aware of its influence on the environment, but
still has not been proactive in regards to green initiatives (In form of GHRM) (Siti-Nabiha et
al., 2011). Accordingly, Amran, Saad, and Aripin (2017), in their study contended that the
majority of the hotel managers in Malaysia considering the green practice in a positive
manner. However, the statistics presented by the Ministry of Tourism, Arts, and Culture
Malaysia are not satisfactory as there are only 24 hotels in Malaysia that are rated as green
hotels (Ministry of Tourism, 2020). Moreover, one study (Amran et al., 2017) has contended
that Malaysian hotel managers are still not sure about decision making regarding the
implementation of the green practices in their hotels. Further, Amran et al. (2017) also added
that the hotel managers are gradually making progress in adopting green practices, however
the majority of them are not adopting them. Therefore, more research is required on the link
between green HRM and environmental performance particularly in the hotel industry to
provide empirical evidence that green HRM practices boost environmental performance.
Green human resource management practices are necessary to be considered as a predictor of
environmental performance as greening an organization influences the overall supply chain;
production, waste management, culture, values, strategies, and employee behaviors are just a
few examples to mention (Benevene & Buonomo, 2020). Additionally, human resource
management practices facilitate the implementation of green policies and practices by its
different practices such as recruitment, compensation, rewards, and exit policies (Renwick,
Redman, & Maguire, 2013). Greening an organization is a new shift that asks for a
commitment from both the employees and the management. It does not happen by only
practices influenced by GHRM but also by the promotion of green behaviors among the
members of an organization (DuBois & Dubois, 2012). Hence, the present study aims to
examine the process through which green human resources management practices can
increase environmental performance particularly in the context of Malaysia.
Additionally, the relationship between the GHRM and green intellectual capital is at its early
stage, and there is a need to conduct more research (Malik et al., 2020). Besides, previously it
was recommended that the green intellectual capital can be investigated as a mediator
between the GHRM and OCB in the theory of ability motivation, and corporate social
responsibility (Yusliza et al., 2020). The green HRM literature scope should be extended and
should be studied as a mediator between the relationship of green HRM and sustainable
performance (Yusliza et al., 2020). Previous studies have also suggested studying green
intellectual capital (Yong et al., 2020; Yusliza et al., 2020). Moreover, Yusoff, Omar, Zaman,
and Samad (2019) argued that few studies have considered green intellectual capital and its
contribution to the environment, which warrants more research on its effects on
environmental performance. Additionally, they also contended that green intellectual capital,
being a novel concept, is not well-known among academicians and practitioners. Thus, it
must be studied as it can positively contribute to the environment. Recent studies
recommended conducting research on the relationship between GHRM and green intellectual
capital in the services industry context (Yusliza et al., 2020; Yusoff et al., 2019).
Organizations can enhance environmental performance by widening the scope of green HRM
practices (Yadav & Ramaswamy, 2020). The study intends to present a research framework
that builds the intellectual capital and results in environmental performance. The present
study has considered the green HRM practices which build intellectual capital rather than a
reinforcement of rewards, so authors did not consider it in the research framework. Thus, the
present study has considered green discipline management, which is not covered under
general HRM practices and is a relatively novel construct. Further, the study also intends to
validate the scale for green discipline management as the previous studies (Al Mamun, 2019;
D’Mello, Manjush, & Monteiro, 2016; Nagarajan, 2020a; Uddin, 2020a) have used different
items to measure green employee discipline management but followed the same conceptual
ground. From the contextual perspective, various studies have contended that green HRM is
widely studied in the western context, which warrants more research in developing countries
(D’Mello et al., 2016; Mishra, 2017; Renwick et al., 2013). Therefore, the present study
addressed the aforementioned research gaps by considering green intellectual capital as a
mediator between the relationship between the green HRM and pro-environmental behaviors
which contribute towards the environmental performance.
The aim of the study is to examine the influence of green human resource management
practices, namely, green hiring, green training, and development discipline management, on
the environmental performance of hospitality employees by also considering the green
intellectual capital and pro-environmental behaviors as mediators. The study adds and
advances the existing literature on GHRM from a discipline management perspective
informing how green discipline management will allow the hotels to build the green
intellectual capital. Additionally, the study also adds to the literature on green discipline
management theoretically and methodologically by validating the measure.

2. Literature Review
The literature review provides details regarding the research framework and how it is
underpinned by the social cognitive theory. Additionally, it individually discusses the
hypotheses among the variables under study.

2.1 Social Cognitive Theory

Social cognitive theory (SCT) (Bandura, 1986) provides the foundation for the current study.
Social cognitive theory has three main components: person, behavior, and environment. The
knowledge, attitude, and experiences of the person generate positive behavior. Moreover, the
positive interaction between person and environment shapes the behavior of an individual.
Green human resource management practices such as green hiring, green training and
development, and green discipline improve the abilities, attitude, and experience of
employees and boost the positive behavior of employees towards pro-environmental
behaviors. Furthermore, the positive behavior in the direction of the environment enhances
the environmental performance. The individual has a high level of green intellectual capital
when they are hired, trained, provide green discipline values, and perform pro-environmental
behavior.
Additionally, SCT intends that a variety of personal, environmental, and behavioral variables
stimulate the pro-environmental behavior, which ultimately improves the environmental
performance. Moreover, green intellectual capital is the knowledge, abilities, and experience
of individuals about greening the environment, which fosters positive behavioral outcomes,
i.e., when an individual has knowledge, abilities, and experience related to environmental
initiatives, he or she is more involved in pro-environmental behaviors. Further, green hiring,
green training and development, and green discipline may affect individuals’ green
intellectual capital and also willingness to transform their environmental goals into actions
and perform pro-environmental behaviors. Environmental performance is more likely to be
achieved when individuals experience strong organizational supports and less hurdles in form
of green HRM practices (Bandura, 1999; Sawitri, Hadiyanto, & Hadi, 2015; Singh, Del
Giudice, Chierici, & Graziano, 2020).

2.2 GHRM and Green Intellectual Capital

In the environmental context, HRM can ensure the successful formulation and
implementation of environmental management (Daily & Huang, 2001) by incorporating the
practices such as selection, performance assessment, training, and development with the
environmental goals (Jabbour, de Sousa Jabbour, Govindan, Teixeira, & de Souza Freitas,
2013). HRM is increasingly integrated with green concepts (Mishra, Sarkar, & Kiranmai,
2014), which resulted in the emergence of “Green Human Resource Management (GHRM).
Renwick et al. (2013) contended that GHRM is a reflection of HRM-related environmental
management with primary emphasis on how HRM can reduce pollution by managing
organizational operational processes. Additionally, GHRM practices denote the
organizational orientation towards protecting the environment and is inclusive of various
aspects of HRM practices (Mishra et al., 2014) collectively focused on the instability of
ecosystem and ecological effects of organizations due to their economic activities (Boiral,
2002). Moreover, GHRM practices are valuable for external stakeholders, whereas HRM
practices are internal stakeholders oriented for profit maximization. GHRM ensures that
employees are committed and involved in pursuing the environmental practices along with
their attention on their work for profits as well. By following these practices, an organization
may develop a positive image and also benefit future generations. Accordingly, business
organizations must behave in an environmentally friendly way to become green and
competitive in current business scenarios because their survival depends on having a
competitive edge by being sustainable (Yong, Yusliza, Ramayah, & Fawehinmi, 2019).
Although there are various GHRM practices such as green reward management, green
performance evaluation, green human resources planning (Uddin, 2020a) green performance
management, and compensation (Mousa & Othman, 2020a), the present study has focused on
a few of them. The strong reason for this lies in the purpose of the study, which is to build the
green intellectual capital that can be better accomplished with the practices specifically
emphasizing and targeting the intellectual capital building rather than a reinforcement of the
desired behaviors. For instance, appraisals and rewards reinforce the behavior as compared to
building intellectual capital. Hence, the study has considered the only three practices, namely,
green hiring, green training and development and green discipline management.
Intellectual capital (IC) is the organizational value-creating asset which can be enhanced by
HRM practices in the form of knowledge and competencies (Kianto, Sáenz, & Aramburu,
2017). Furthermore, intellectual capital is considered as a non-financial and concrete
resource, grounded on organizational abilities, experience, and knowledge to construct
competitive advantage and improve performance (Allameh, 2018; Rehman,
Hawryszkiewycz, Sohaib, & Soomro, 2020; Sydler, Haefliger, & Pruksa, 2014; Yong,
Yusliza, Ramayah, & Fawehinmi, 2019). Green intellectual capital (GIC) is the combination
of intellectual capital and environmental initiatives which includes all intangible assets, i.e.,
knowledge, proficiencies, and collaborations at individual and organizational levels (Chen,
2008), creates value for the organizations.

Furthermore, Yong, Yusliza, Ramayah, and Fawehinmi (2019) examined the association
between green HR practices and green intellectual capital, and they highlighted that different
dimensions of green intellectual capital are significantly related to green human resource
practices. Ma, Chen, and Ruangkanjanases (2021) reported that green training provided to the
employees enhances their skills, abilities, knowledge, commitments, and attitude towards
environment management. Their study findings also proved that green training provided to
employees results in green human capital which is one of the components of green
intellectual capital. Accordingly, a previous study integrated green HRM practices with green
intellectual capital. According to findings, green HRM practices play a key role in enhancing
pro-environmental psychological capital. It further identified that green recruitment and
selection, green training and development, green compensation, and green performance
management are significantly related to green intellectual capital. This study also proposed
that improvement in green HR practices could facilitate the enhancement of green intellectual
capital for the sake of competitive advance (Jirawuttinunt, 2018). Moreover, another recent
study by Yong, Yusliza, Ramayah, Chiappetta Jabbour, et al. (2019) also argued that green
HRM practices played a significant role towards green intellectual capital and organizational
sustainability. Based on the above discussion it can be hypothesized that:
H1: Green hiring is significantly related to green intellectual capital.
H2: Green training and development is significantly related to green intellectual capital.
H3: Green discipline management is significantly related to green intellectual capital.

2.3 Green Intellectual Capital and Pro-environmental behavior

Individual intellectual capital enhances the performance of the organizations because when
individuals have good knowledge, abilities, skills, and competencies regarding their job they
perform better and enhances the organizational performance (Chen, 2008; Hermawan,
Harinyanto, & Biduri, 2020; Yong, Yusliza, Ramayah, & Fawehinmi, 2019). Pro-
environmental behavior of employees denotes “willingness to engage in pro-environmental
activities”(Scherbaum, Popovich, & Finlinson, 2008). Employee pro-environmental behavior
has two types: task-related and voluntary pro-environmental behaviors. Moreover, according
to SCT (Bandura, 1986) when an employee has non-physical and concrete resources such as
knowledge, skills, and abilities related to environmental initiatives, he or she behaves more
environmental friendly and performs task duties and extra mile behavior (pro-environmental
behavior) according to environmental initiatives. Thus, green intellectual capital is critical in
pro-environmental behaviors. Further, the employee’s environmental knowledge positively
affects employee pro-environmental behaviors.

Intellectual capital is crucial for organizations as it creates value for them. Knowledge exists
in different forms in organizations, such as in databases, internal and external relationships,
business processes, and systems. Additionally, human skills in the form of knowledge,
creativity, and commitment develop sustainable performance. Human capital may be used by
the employees to increase their performance, reduce wastage and lead towards sustainable
performance (Malik et al., 2020). When the employees are equipped with the appropriate
knowledge and skills, they will be more likely to get engaged in environment-oriented
behaviors. Accordingly, Tefera and Hunsaker (2020) in their study contended that the
intangible asset in form of human, social, organizational (Structural), and psychological
capital results in organizational citizenship behaviors. Moreover, the successful steps taken
by an organization for long-run environment-related performance hinges upon employee pro-
environmental behaviors (Saeed et al., 2019). Green intellectual capital is a distinctive source
for improvement of the employee behavior towards greening the environment and enhances
the sustainable performance of the organizations (Yusliza et al., 2020). Consequently, the
present study argues that when an organization hires employees with green psychology
(Orientation), provides them environment-oriented training and development and finally,
ensures a discipline within an organization ultimately building the green intellectual capital.
Additionally, when the employees are capable, have knowledge, and the organization also
has developed the processes and procedures, then it will lead towards the increased pro-
environmental behaviors.

H4: Green intellectual capital is significantly related to employees’ pro-environmental

behaviors.
H5: Green intellectual capital significantly mediates the relationship between green hiring
and pro-environmental behaviors.
H6: Green intellectual capital significantly mediates the relationship between green training
and development and pro-environmental behaviors.
H7: Green intellectual capital significantly mediates the relationship between green
discipline management and pro-environmental behaviors.

2.4 Pro-environmental behavior and Environmental Performance

Employee’s pro-environmental behaviors fundamentally influence environmental
performance (Vicente-Molina, Fernández-Sáinz, & Izagirre-Olaizola, 2013). Such behaviors
and employee participation in eco-friendly behaviors that address the environmental issues
are considered as an effectual stratagem to become an organization that values the
environment by being environmentally responsible ultimately enhancing the performance
regarding the environment (Djellal & Gallouj, 2016; Kangasniemi, Kallio, & Pietilä, 2014;
Saeed et al., 2019). In addition, green human resource management practices increase the
employees' environmental awareness. When they are aware of the environmental issues, then
they will engage in environment-oriented activities which ultimately enhance the
environmental performance (Chen & Chang, 2013). Moreover, previous studies explained
that the green behavior of employees enhances the employees' green performance (Guerci,
Longoni, & Luzzini, 2016; O'Donohue & Torugsa, 2016). Nowadays, organizations facing
pressure from their stakeholders. Therefore, there is a need to do more research related to
green behaviors and eco-friendly practices (Singh et al., 2020). According to SCT Bandura
(1986), the behavioral factor of a person affect the environmental factors. Thus, the
participation of employees towards greening the environment enhances the organization's
performance. Furthermore, the pro-environmental behavior of employees improves the
employee’s environmental performance.

The literature supports the argument that green intellectual capital is significantly related to
pro-environmental behaviors, (Saeed et al., 2019; Yusliza et al., 2020), and pro-
environmental behaviors are significantly related to environmental performance (Chen &
Chang, 2013; Elshaer, Sobaih, Aliedan, & Azzaz, 2021; Naz, Jamshed, Nisar, & Nasir, 2021;
Ojo, Tan, & Alias, 2020; Singh et al., 2020; Umrani et al., 2020). Therefore, based on SCT
(Bandura, 1986), and empirical evidence, this study assumed that pro-environmental
behaviors may play an intervening role and mediate the existing relationship between green
intellectual capital and environmental performance. Based on social cognitive theory
(Bandura, 1986), it is proposed that green intellectual capital along with pro-environmental
behaviors may further predict the environmental performance in a better way. Drawing on a
synthesis of previous studies and based on SCT, this study proposes that.
H8: Pro-environmental behaviors are significantly related to the environmental performance
of hotels.
H9: Pro-environmental behaviors are significantly mediate the relationship between green
intellectual capital and environmental performance.
Figure 1 shows the theoretical framework of the present study. As per the framework the
GHRM practices, namely, green hiring, training and development and discipline management
builds the green intellectual capital (Jirawuttinunt, 2018; Kim, Kim, Choi, & Phetvaroon,
2019a). Hiring the individuals that correspond with the green policies or environmental
approach of organization, providing them training and development opportunities, and also
maintaining the green discipline results in green intellectual capital. Later on, the green
intellectual capital as an ability motivates employees to execute green behaviors, resulting in
higher environmental performance. It is also consistent with SCT (Bandura, 1999) which
holds that personal, behavior and environmental variables stimulate pro-environmental
behaviors, resulting in higher environmental performance.

Figure I: Theoretical Framework

3. Methodology
Methodology is one of the important sections of a research study. The methodology section
provides the details regarding the questionnaires adapted from previous studies, translation of
questionnaire, population, sampling, and data collection procedures.

3.1 Questionnaire and Pre-test

All the measuring instruments to measure the underlying constructs were adapted from
previous studies (See Table 1). All of them were multi-item measures. A scale of GHRM
practices is comprised of three dimensions named green hiring, green training &
development, and green discipline. Based on a recent study by Mousa and Othman (2020b), a
six item scale was adapted to measure green hiring. Eight items were used to measure the
green training & development that were adapted from a study by Yusoff, Nejati, Kee, and
Amran (2018b). Furthermore, based on few recent studies Al Mamun (2019), UDDIN
(2020b), and Nagarajan (2020b), a seven items scale was adapted to measure green discipline
management. Green intellectual capital is comprised of three dimensions named as green
relational capital green structural capital and green human capital. Referring to Table 1, a
total of 18 items were used to measure green intellectual capital. Five, eight, and five items
for green relationship, structural and human capital, respectively; these were collectively used
to measure the green intellectual capital and were adapted from Huang and Kung (2011).
Moreover, 6 items used to measure pro-environmental behavior were developed by Roberson
and Carleton (2017). A 7-item scale that was developed by Kim, Kim, Choi, and Phetvaroon
(2019b) was used to measure the hotels’ environmental performance.

The questionnaire was translated from English to Bahasa Melayu using the back-translation
method proposed by Brislin (1970). Translation and editing services (English to Bahasa
Melayu) were given by the editing and translation section of the Professional Development
Unit in the School of Languages, Civilisation, and Philosophy at Universiti Utara Malaysia.
The English version of the questionnaire was translated into Bahasa Melayu. Later on, the
translated questionnaire (Malaysian version) was translated back to English by other
translator. Finally, English and Bahasa Melayu versions were compared to find any
discrepancies. All differences were sought out by the translators. Content validity was
performed by sending the measurement instrument to five experts including two human
resource managers of hotels and three assistant professors having specialized education in
hospitality management. Based on their suggestions, some minor adjustments were made. To
ensure clarity, a pilot study was conducted, and the questionnaires were given to 35
respondents to seek their feedback. The questionnaires required no amendments at all.
Table 1: Scales for Constructs
Items
Green Hiring (Mousa and Othman, 2020)
GH1 The hotel prefers to recruit employees that have knowledge about environment.
GH2 Applicants for jobs in the hotel are subject to interviews to test their knowledge about environment
GH3 In addition to other criteria, employees are selected based on environmental standards.
GH4 Job seekers are attracted by the environmental image and policies of the hotel
GH5 The job description includes the job’s environmental aspects
GH6 The recruitment message includes hotels’ environmental values in job advertisement
Green Training and Development (Yusoff et al., 2018).
GTI1 Training programs about environment are provided to large-scale individuals in the hotel.
GTI2 In general, staff are satisfied with the hotel’s green training.
GTI3 Topics offered through green training are modern and suitable for the institution’s activities.
GTI4 The hotel provides formal environmental training programs for employees to increase their ability to promote
them.
GTI5 Environmental training is a priority and an important investment.
GTI6 The need assessment for green training helps to familiarize employees with environmental practices
GTI7Evaluation of green training and development helps to measure the employees’ level of green knowledge and
awareness.
GTI8 Environmental objectives contain green training and development aspects
Green Discpline Management (Al Mamun, 2019; UDDIN, 2020; Nagarajan, 2020)
GDM1 Setting penalties or dismissal for environmental management breaches. Opatha, 2013
GDM2 Developing a progressive disciplinary system to punish employees who violate the rules of green conduct
GDM3 Implementing ‘discipline management’ as a tool to self-regulate employees in environmental protection
activities of the organization.
GDM4 Our hotel maintains green employee discipline management
GDM5 We set penalties for noncompliance on targets in environmental management.
GDM6 We set penalties or dismissal for environmental management breaches.
GDM7 We formulate and publish rules of conduct relating to greening.
GDM8 We establish a clear set of rules and regulations which impose or regulate employees to be concerned with
environmental protection
Green Intellectual Capital (Huang and Kung, 2011)
Green Human Capital
GHC1 The employees in this hotel involve a positive productivity and contribution towards environmental protection.
GHC2 The employees in this hotel have an adequate competence towards environmental protection.
GHC3 The employees of this hotel provide high product and service qualities towards environmental protection.
GHC4 The cooperative degree of teamwork towards environmental protection is performed at high levels in this hotel.
GHC5 The managers can fully support their employees to achieve their jobs of environmental protection.
Green Structural Capital
GSC 1 This hotel has a superior management system of environmental protection.
GSC 2 This hotel has a high ratio of employees of environmental management from its total employees.
GSC 3 This hotel makes an adequate investment in environmental protection facilities.
GSC 4 The overall operation processes towards environmental protection in this hotel operate efficiently.
GSC 5 The knowledge management system in this hotel is favorable for the accumulation and knowledge sharing of
environmental management.
GSC 6 This hotel has formed a committee to progress on key issues in environmental protection.
GSC 7 This hotel has established detailed rules and regulations of environmental protection
GSC 8 This hotel has established a reward system for accomplishing environmental tasks
Green Relational Capital
GRC1 This hotel designs its products or services in compliance with the environmental desires of its customers.
GRC2 The customers are satisfied about this hotel's environmental protection.
GRC3 The cooperative relationships of this hotel with its suppliers towards environmental protection are stable.
GRC4 The cooperative relationships of this hotel with its clients towards environmental protection are stable.
GRC5 The cooperative relationships of this hotel with its strategic partners towards environmental protection are stable.
Pro-Environmental Behavior (Roberson and Carleton, 2017)
PEB1 Recycling cans, bottles and newspapers, etc., is inconvenient.
PEB2 I hate having to wash out bottles for recycling.
PEB3 Conserving materials, energy, etc., is inconvenient.
PEB4 I hate remembering to turn off lights, computers, etc., to conserve energy/materials.
PEB5 Engaging in pro-environmental behaviors is inconvenient.
PEB6 I hate the time and effort it takes to engage in pro-environmental behaviors.
Environmental Performance (Kim et al., 2019a,b)
EP1 Our hotel has reduced wastes
EP2 Our hotel has conserved water usage
EP3 Our hotel has conserved energy usage
EP4 Our hotel has reduced purchases of non-renewable materials, chemicals, and components.
EP5 Our hotel has reduced overall costs
EP6 Our hotel has improved its position in the marketplace
E7 Our hotel has helped enhance the reputation of our hotel

3.2 Sample design and data collection

This study used a deductive approach with a survey questionnaire method. Langkawi city in
Malaysia was selected for data collection. According to the Langkawi Development
Authority (LADA), Langkawi is one of the most attractive tourist places and a world-class
tourism destination with several international and local tourists. Langkawi city was targeted
for data collection because it is one of the most popular destinations in Malaysia for tourists.
A list of five-star hotels was taken from the Malaysian Association of Hotels (MAH). A total
of ten hotels were selected randomly. Data were collected within 3 months (September 2020
to November 2020). Data collection services were availed by a Malaysian organization
“Quantum Data Collection (QDC)”. Surveyors were hired for data collection. As per the
instructions provided to the surveyors, they informed all the respondents regarding the
research purpose and then obtained consent to fill the questionnaire. All selected hotels were
following the green practices and strictly following the rules and regulations mentioned under
the Malaysian Hotels and Restaurants Act. Data were collected from the employees who were
directly engaged with the implementation of the green practices of hotels by using purposive
sampling. Data were collected from the managerial staff of selected hotels. Due to Covid-19,
surveyors collected data by using an online questionnaire in person. Before formal data
collection, an invitation letter was send to the HR department of selected hotels to refer to the
actual respondents after approval. Selected managers were handed over with the
questionnaire to fill it. Out of ten selected hotels, 650 employees completed the
questionnaires. Finally, 374 responses were found valid after the process of data cleaning for
further data analysis, giving a response rate of 57%. This response rate is in line with the
studies conducted in hospitality and tourism domain (Ali et al., 2021).
3.3 Demographics
This section deals with the demographic characteristics of respondents. A total of 374
respondents participated in this survey. Results show that out of 374 participants, 71.2%
(266) were male and 28.8% (108) were female. The majority of the respondents were aged
from 31-40 years. The survey accounted for 53% (198) of individuals being in that age group.
While 38% (142) were of ages up to 30 years old, and the remaining 9% (34) belonged to the
age group of 41-50 years. In terms of education, 72.3% (270) of participants had bachelor’s
degree, followed by 17.7% (66) with Master’s degree, 9% (34) fell in the others’ category,
and the remaining 1.1% (4) had obtained their Ph.D. The results relating to the length of
service found that 21.7% (81) of individuals had up to one-year job experience, 54.9% (205)
of respondents had 1-5 years of experience, and the remaining 23.4% (88) had 6-10 years of
experience in their respective organization.

4. Findings

Hypotheses were tested by using PLS-SEM because it is widely used and is believed to be a
modern assessment technique in all business sectors, particularly in the hospitality and
tourism area (Ali et al., 2018). This empirical investigation aimed to predict and explain the
studied latent variables grounded with contemporary theory. Additionally, it is assumed as a
flexible technique for model assessment (Ringle, Wende, & Will, 2005). The next reason for
adopting PLS-SEM is concerned with the lesser requirements with respect to sample size as
compared to Amos and normality of data (Hair et al., 2016). Therefore, this research used
PLS-SEM to avoid data normality issues and sample size. Besides this, the PLS algorithm
and bootstrapping technique are conducted to find factor loadings for testing the construct
validity and internal consistency reliability (Ali et al., 2018), path coefficients, and
corresponding significant level to test the hypotheses. First, the measurement model was
calculated, and then estimations were found through structural model assessment.

Although PLS-SEM is a non-parametric analysis tool and does not necessitate the condition
of the normal distribution of data as stated in aforesaid para, the data normality distribution
must not be neglected before putting on any inferential statistics (Hair, Money, Samouel, &
Page, 2007). Thus, following guidelines stated by Munro (2005), this research measured the
data normality via the skewness, kurtosis, and histogram plots. Results revealed that values of
all latent variables lie in the confined threshold (such as for skewness and kurtosis ranges of
values should be between -2 to +2), inferring that the data were normally distributed. Since
these findings delineate that there is no issue of abnormality of data, further analysis can be
done by applying PLS-SEM.

Past research proclaimed that a full collinearity test could be deployed to find whether data
was flamed with the issue of common method bias while using PLS-SEM. Based on the
suggestions by Kock (2015), common method bias was assessed by employing variance
inflation factors (VIF)s The results demonstrated that all the scores of VIFs for the latent
variables were lower than the cut-off value, thereby claiming that data was not contaminated
with the error of CMB.

4.1 Measurement model assessment

Before testing the hypotheses, the measurement model was assessed. Factor loadings, average
variance extract (AVE), and composite reliability (CR) were used to determine the
convergent validity (CV). Table 2 shows the values for convergent validity. Factor loadings
should be greater than 0.60. As per the findings reported in Table 2, all of the factor loadings
except for few ones are meeting the threshold of 0.60. Values of CR and AVE must be
greater than 0.70 and 0.50 respectively (Hair, Hult, Ringle, & Sarstedt, 2016). As per the
findings reported all the values of CR and AVE are greater than 0.70 and 0.50 respectively.
Items were deleted with the lowest factor loadings (<0.50).

Table 2: Convergent Validity

2nd Order
1ST Order Constructs Constructs Items Loadings Alpha rho_A CR AVE
Environmental Performance EP1 0.821 0.894 0.915 0.931 0.728
EP2 0.891
EP3 0.862
EP4 0.891
EP5 0.799
Pro-Environmental Behavior PEB1 0.799 0.899 0.903 0.91 0.716
PEB2 0.856
PEB4 0.827
PEB6 0.899
Green Human Capital GHC1 0.943 0.907 0.929 0.905 0.72
GHC2 0.968
GHC3 0.42
GHC4 0.937
Green Relational Capital GRC1 0.878 0.858 0.868 0.913 0.727
GRC2 0.688
GRC4 0.902
GRC5 0.922
Green Structural Capital GSC1 0.915 0.909 0.926 0.942 0.767
GSC2 0.929
GSC4 0.884
GSC6 0.781
GSC7 0.861
Green Intellectual Capital GHC 0.776 0.835 0.843 0.862 0.675
GRC 0.837
GSC 0.85
Green Hiring GH1 0.826 0.889 0.911 0.934 0.78
GH3 0.913
GH4 0.917
GH5 0.874
Green Training & Development GTD1 0.849 0.863 0.884 0.92 0.742
GTD2 0.857
GTD4 0.874
GTD5 0.864
Green Discipline Management GDM1 0.85 0.865 0.912 0.935 0.784
GDM4 0.914
GDM5 0.885
GDM7 0.89
Note: AVE-Average Variance Extracted; CR-Composite Reliability
Henseler, Ringle, and Sarstedt (2015) put forward an advanced approach for the assessment
of discriminant validity. They contended that the Fornell-Larcker criterion can effectively
assess the discriminant validity, however, it may not detect for lack of discriminant validity.
Hence, discriminant validity was assessed by HTMT. Table 3 shows values of HTMT for
variables understudy. As per criterion HTMT values for all variables must be less than 0.90
(Gold, Malhotra & Segars, 2001). Table 3 shows that HTMT values for all variables are less
than 0.90 which establishes the discriminant validity for all variables understudy.

Table 3: HTMT Ratio

EP GDM GH GHC GIC GRC GSC GTD PEB
EP
GDM 0.533
GH 0.511 0.562
GHC 0.564 0.343 0.241
GIC 0.851 0.523 0.439 0.894
GRC 0.734 0.524 0.35 0.637 0.891
GSC 0.801 0.438 0.471 0.514 0.872 0.596
GTD 0.575 0.692 0.681 0.381 0.624 0.587 0.574
PEB 0.499 0.589 0.796 0.336 0.511 0.472 0.459 0.683

Figure 2: Structural Model Assessment

4.2 Structural Model Assessment

The structural model was assessed after the assessment of the measurement model. Path
coefficients, t-values, and standard errors were used to determine the model significance.
Bootstrapping procedure was followed for testing the direct and indirect hypotheses (Ringle
et al., 2005). Table 4 and Figure 2 present details about the tested hypotheses. As per the
results, only two hypotheses did not find any statistical support, while all other hypotheses
were statistically supported. Referring to Table 5, VIF values for all the predictors were less
than 5, as suggested by Hair et al. (2011), so it could be said that there was no issue regarding
multicollinearity. Referring to Table 5, the exogenous constructs (green hiring, green training
and development, and green performance management) contributed to 35.6% of the variance in
green intellectual capital. It can be seen that 22.8% of the variance in pro-environmental
behaviors was also explained by green intellectual capital. It can be seen that pre-environmental
behavior accounted for 21.3% of variance in environmental performance.

Table 4: Path Analysis

BC
Relationships Beta t-value L.L U.L Decision
H1 Green Hiring -> Green Intellectual Capital 0.047 0.785 -0.078 0.148 Not Supported
H2 Green Training & Development -> Green Intellectual 0.416 6.927 0.298 0.537
Supported
Capital
H3 Green Discipline Management -> Green Intellectual 0.205 3.939 0.102 0.311
Supported
Capital
H4 Green Intellectual Capital -> Pro-Environmental 0.478 11.539 0.386 0.548
Supported
Behavior
H5 Green Hiring -> Green Intellectual Capital -> Pro- 0.022 0.761 -0.034 0.076
Not Supported
Environmental Behavior
H6 Green Training & Development -> Green Intellectual 0.199 5.75 0.133 0.273
Supported
Capital -> Pro-Environmental Behavior
H7 Green Discipline Management -> Green Intellectual 0.098 3.684 0.049 0.152
Supported
Capital -> Pro-Environmental Behavior
H8 Pro-Environmental Behavior -> Environmental 0.462 9.818 0.372 0.548
Supported
Performance
H9 Green Intellectual Capital -> Pro-Environmental 0.221 5.599 0.144 0.296
Supported
Behavior -> Environmental Performance

Table 5: R2, f2, and VIF

Constructs R2 Adj. R2 f2 Q2 VIF
Green Intellectual Capital 0.356 0.351 0.038 0.185 1.704
Pro-Environmental Behaviors 0.228 0.226 0.295 0.218 1.087
Environmental Performance 0.213 0.211 0.271 0.236 2.098

5. Discussion
This research work examined how green HRM practices contribute towards environmental
performance in the context of Malaysian hospitality while considering the mediating role of
green intellectual capital and pro-environmental behavior. Findings of the study are presented
and discussed consistent with the research hypotheses. Concerning the hypothesis between
green HRM and green intellectual capital, the study findings have confirmed the relationship
between green training and development, green discipline management, and green intellectual
capital. The findings confirm that in order to build green intellectual capital, hotels must
provide the employees with the training. These are consistent with previously available
literature (Ma et al., 2021; Pham, Vo-Thanh, Shahbaz, Huynh, & Usman, 2020; Yusliza et
al., 2020), which also states that hotels must consider the training activities that will equip the
employees with new knowledge, skills and also upgrade their abilities regarding the green
initiatives, ultimately leading towards building the green intellectual capital (Pham, Thanh,
Tučková, & Thuy, 2019). Similarly, environmental training provided to the employees
enhances their skills, knowledge and ability (Pham et al., 2020), translating into green
intellectual capital (Yong, Yusliza, Ramayah, & Fawehinmi, 2019). Intellectual capital
consists of human, structural and relational capital. Ma et al. (2021) while examining the
antecedents of green human capital, presented empirical evidence that green training
provided to employees results in green human capital. The study findings also supported the
relationship between green discipline management and green intellectual capital. Notably,
there is no support found for the relationship between green hiring and green intellectual
capital. Additionally, the findings of the study also confirmed a relationship between green
intellectual capital and pro-environmental behavior. When the employees do have skill,
knowledge, and ability regarding the green initiatives or practices they will be inclined to
perform the environment-oriented behaviors (Yusliza et al., 2020); the present study findings
are in line with the aforementioned argument. Pro-environmental behaviors and
environmental performance were found to be positively associated. These findings are
supported with the previous studies. For instance, Elshaer et al. (2021) from the hospitality
industry perspective contended that pro-environmental behaviors of employees results in
reduced wastage, water conservation, reduced energy consumption, and usage of renewable
materials results in environmental performance. Similarly, Naz et al. (2021), Umrani et al.
(2020), and Ojo et al. (2020) also reported a positive relationship between pro-environmental
behaviors and environmental performance, thus, strengthening the results of the present
study.
Results revealed that green intellectual capital and pro-environmental behaviors contribute to
the environmental performance of hotels. Green intellectual capital is a multi-dimensional
construct and covers human, structural, and relational capital aspects. It is worthy to note that
the knowledge, skills, and attitude of the employees are an integral part of green intellectual
capital and they jointly build the employees’ competence develops their attitude (Yusliza et
al., 2020; Yusoff et al., 2019). For instance, Tefera and Hunsaker (2020) provided evidence
that when the employees do have the knowledge, skills, and organizational processes and
procedures also support them, they will be more inclined towards performing the OCBs.
Accordingly, the present study findings also revealed that intellectual capital results in pro-
environmental behaviors among the hotel employees. The present study findings also state
that the training provided to the employees and maintain the green discipline in the
organization build and facilitate green employee competence, which contributes towards pro-
environmental behaviors. Findings also confirm that employee behaviors mediate between
GHRM and environmental performance. These findings are in line with the previous research
(Kim et al., 2019a; Pham et al., 2019), which also states that environmental performance can
be increased by fostering environment-oriented behaviors among employees.
Considering the study findings, it is summed up that green HRM practices positively enhance
environmental performance, and they do so by affecting the employees’ attitudes and
behaviors. Overall findings of the study are consistent with the previous studies (Daily,
Bishop, & Govindarajulu, 2009; Datta, 2015; Muster & Schrader, 2011; Paillé, Chen, Boiral,
& Jin, 2014), according to whom GHRM practices facilitate an organization to develop
greener minds and positive approach towards the environment which lead towards the
environment-oriented behaviors. Finally, it ends up increasing environmental performance.
The study findings also confirm that the GHRM practices (Except green hiring) facilitate the
environmental goals of hotels indirectly by building up the green intellectual capital and
fostering pro-environmental behaviors among employees.

5.1 Theoretical Implications

From a theoretical perspective, this work carries some implications. Previously it has been
argued that green HRM and environmental performance are studied, but there is a lack of
studies that incorporate two mediating variables to study the indirect influence of green HRM
on environmental performance (Pham et al., 2019). Thus, the present study is a valuable
addition to the literature on green HRM influence on environmental performance as it has
explained the underlying relationship with two mediating variables and presented empirical
evidence regarding a process through which green HRM contributes towards environmental
performance. Hence, the mediation process presented by the present research work suggests a
comprehensive framework to study the GHRM practices influence on environmental
performance. The present research work is also a significant contribution to the existing
literature as it has addressed the environmental performance issue in the services sector,
particularly, the hospitality which is facing various challenges. There are few studies on
green intellectual capital in environmental management (Yusoff et al., 2019), and most of
those have marked it as a determinant of sustainable performance (Malik et al., 2020; Yusliza
et al., 2020; Yusoff et al., 2019). This study not only examined the green intellectual capital
from the environmental management aspect but also enhanced our understanding of how it
contributes towards generating/fostering employee behaviors rather than directly resulting in
environmental performance.

5.2 Practical Implications

Our work also offers several practical implications for hotels. The study findings have
postulated green training and development as a key practice to build intellectual capital and
foster pro-environmental behaviors. Thus, the hotels are required to provide training to their
employees regarding environmental practices and initiatives. Further, hotels are also required
to provide opportunities for employees to implement what they have learned during the
training. As such opportunities will result in advancing their environmental skills, knowledge,
and abilities, consequently, building up the intellect and foster the pro-environmental
behaviors and finally, ending up in improved hotel environmental performance. Further, the
research can facilitate managers in their effort to build intellectual capital as it has provided
empirical evidence related to the contribution of GHRM practices towards the GIC.
Additionally, the findings also aid managers to identify and focus on the particular practices
to foster the pro-environmental behaviors among employees, aimed at to enhance the
environmental performance of hotels.
It is also important for hotels that they should hire employees with a passion to preserve the
environment. For this purpose, various checks can be developed at hiring time. For instance,
HR managers may conduct a test to judge the environmental orientation and awareness of the
potential candidates. In order to cope with the rising environmental concerns in the hotel
industry, the present study suggests that managers should maintain green discipline by
punishing employees or fining them for not observing the environmental policy of hotels.
Further, managers should strictly monitor that either discipline is maintained or not.

5.3 Implications for Cleaner Production Policymakers

With this research study, it is suggested that green human resources management practices
should be adopted and followed in order to increase environment-oriented behaviors and
environmental performance. Application of the green human resources management practices
requires that the HR manager use the online forums for the recruitment process in this way
the usage of the papers will be reduced ultimately lead towards a drastic reduction in tree
cutting. Additionally, they are also required to have online interviews resulting in a reduction
of less fuel and energy usage, and lesser carbon emissions. By doing so the recruitment
process of organizations can be improved and aligned with environmental sustainability as it
reduces unnecessary waste creation. Besides redefining the recruitment process from cleaner
production perspectives, further, it is suggested that hospitality employees may be provided
online training. In this way, carbon emissions due to travel and excessive energy
consumption may be reduced. Additionally, hotels may also develop particular disciplinary
actions consistent with the environmental policies to be followed by the hotel employees. For
instance, there may be disciplinary action if the employees of the hotel unnecessarily leave
the room lights on or there may be disciplinary action if they are using the electronic
appliances extensively that may be against the environmental policy. Moreover, hotel
employees may be also be trained to reduce food wastage and eliminate the unhygienic foods
that are offered to the customers. The reduction of food wastage and production of safe food
may be implemented consistent with the cleaner production concept.

5.4 Future Research Avenues

The research work also carries some shortcomings. First of all, the sample was taken from the
service sector, and single-source data collection was followed. Future studies may consider
the manufacturing sector to study the current research framework or they can also consider
different service sectors to make a comparison. The present study has considered a limited
number of green HRM practices. Future studies may consider other green HRM practices that
can build green intellectual capital, and being a multi-dimensional construct, it is
recommended that future studies should explore the dimensions influence on behavior and
environmental performance to have better insights regarding which aspect of GIC is to be
more emphasized. More importantly, the study has examined the building up of the green
intellectual capital and did not consider the retention of the employees (If they leave the
hotels may lose their intellectual capital). Thus, it is recommended that future studies should
incorporate retention strategies (Rewards and appraisals) as well to retain the intellectual
capital since the hotel industry in Malaysia comes under high turnover industries (Abo-Murad
& Abdullah, 2019; Zainol, Ahmad Rozali, Nordin, Tazijan, & Ab Rashid, 2015). Moreover,
it is also interesting to study the moderating variables between the relationship of green
intellectual capital and pro-environmental behavior such as green self-efficacy. Finally, the
development of generalized measures of green discipline management is recommended for
future research studies.

6. Conclusion
The present study is a valuable addition to the existing literature on gaining higher
environmental performance, particularly in the Malaysian hospitality context. The role of
green human resources management practices was found to be associated with green
intellectual capital among hospitality employees. Conclusively, by hiring conscientious
employees, providing training and development, and also maintaining the green discipline,
hotels can improve their green intellectual capital. As per the findings, green intellectual
capital serves as a motivation which enables the employees to think that they can perform
certain green behaviors as they have knowledge, skills, abilities and processes as well.
Ultimately, this will result in pro-environmental behaviors that later on adds to the improved
environmental performance. Study findings are not limited to the intellectual findings but
they also revealed that how to do the intellectual capital results in boosting the pro-
environmental behaviors among hotel employees ultimately resulting in the higher
environmental performance of hotels. Hence, the study has provided evidence from a process
perspective of how green human resources management practices result in higher
environmental performance. Additionally, the study extended the existing body of knowledge
on social cognitive theory by considering GHRM practices that may result in intellectual
capital rather than a reinforcement of particular behaviors.

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