Strategic Human Resource Management for Sustainable Business Growth: A Study of Emerging Enterprises in Asia

Abstract

Sustainable business growth has become a critical objective for emerging enterprises facing competitive and environmental challenges in Asia. The study aimed to examine the influence of Strategic Human Resource Management (SHRM) on sustainable growth, emphasising the mediating effects of innovation capability and organisational learning, as well as the moderating roles of institutional and cultural contexts. A quantitative cross-sectional design was employed, collecting data from 400 small and medium-sized enterprises across India, Indonesia, Malaysia, and the Philippines. Statistical analysis using Structural Equation Modelling revealed that SHRM significantly enhances sustainable business growth (β = 0.68, p < 0.001), accounting for 46% of the variance in sustainability performance. Innovation and learning partially mediated this relationship, contributing an additional 24% of explained variance. Institutional support strengthened the SHRM sustainability link, while collectivist cultural orientations exhibited a slight weakening effect. Cross-country comparisons demonstrated stronger correlations in Malaysia (r = 0.71) and the Philippines (r = 0.69), underscoring the importance of institutional maturity. The results confirm that strategic alignment of HR practices fosters resilience, innovation, and long-term competitiveness in emerging enterprises. The study concludes that integrating sustainability-oriented HR systems is vital for achieving balanced economic, social, and environmental performance within developing business contexts.