Green Human Resource Management and Organizational Competencies: Sustainability Through Employee Performance in Bali’s Hospitality Industry

Abstract

The hospitality industry faces growing pressure to integrate environmental responsibility with organizational performance. This study examines how Green Human Resource Management (GHRM) and organizational competencies influence organizational sustainability, with employee performance as a mediating mechanism. A quantitative survey was conducted among 300 employees of five-star hotels in Bali, Indonesia. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 3. The results show that GHRM positively affects organizational sustainability (b = 0.301, p = 0.028) and employee performance (b = 0.467, p < 0.001). Organizational competencies also positively influence organizational sustainability (b = 0.218, p = 0.004) and employee performance (b = 0.504, p < 0.001). Employee performance significantly affects organizational sustainability (b = 0.468, p < 0.001). Moreover, employee performance partially mediates the effects of GHRM (b = 0.218, p < 0.001) and organizational competencies (b = 0.236, p = 0.003) on organizational sustainability. These findings indicate that sustainability in luxury hotels depends on combining green human resource practices with competency development to strengthen employee performance and translate organizational resources into sustainable outcomes.