Final project major business research methods 2

Green Human Resource Management Green Intellectual Capital Sustainable Performance Green Innovation Business Sustainability Resource-based view theory World Commission on Environment and

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THE MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH

CITY COLLEGE OF BUSINESS SCHOOL OF MANAGEMENT

Supervisor: Cao Quéc Viét, Ph.D

DECLARATION

We hereby declare that the thesis is a research work to our rescue The data in this topic are collected and used individually in an honest way The research results presented in this thesis are no copy of any thesis and have not been presented or published in any other previous research work

ACKNOWLEDGEMENT

We would like to sincerely thank the teachers of Ho Chi Minh City University of Economics, especially the Faculty of Management, who have taught and imparted to us valuable knowledge that serves as the foundation for the implementation of this thesis After that, we would like to thank my research supervisor, Cao Quoc Viet, Ph.D Without his assistance and dedicated involvement in every step throughout the process, this paper could have never been accomplished We are extremely grateful to you for supporting and understanding us during the past time

TABLE OF CONTENTS

DECLARATION 1 ACKNOWLEDGEMENT 2 TABLES OF CONTENTS 3 LIST OF ABBREVIATION 5 LIST OF FIGURES 6 TOPIC SUMMARY 7 CHAPTER 1: OVERVIEW 8 In; ‹ na 8 II ) li à.cỈciaaitiỶẩẢ 9

ID 9i e 9 1.2.2 Detail na ae 9 1.3 Research proble1ms - - c1 1121221121 121151 2111211211 21101101 120111 11 11011 011111011 E110 k1 rệt 9

Co on nh a 9 IS 1 10 CHAPTER 2: LITERATURE REVIEW 11 2.1 Overview and summary of prevIous ÍindIngs c2 122112112112 2151 21112112 8 re 11

P No .ãăă Ố.Ố 12

PP sài Tồ in e5 27 2.3.1 Sustainable perÍormance - - + 12c 221121211 151121 111111121111 211 110112512111 810111 rret 29 2.3.2 Green analysis and Job desCTIDEIOTS - 0 0221121122121 1211221212221221111 20111111 xxrrg 29 2.3.3 Green recruttmenf and seleCfIOT ĩc cty hy HT Hà Hư 29 2.3.4, Green fTAITITE 1 2121121122121 2 1211212111010 11 1012112112011 11 101211 1110111111105 1011111 xrr 29 2.3.5 Green performance aSS€SSINTIE 0 020020121211 01011111 1111112 11122101 20111011 rxcrryg 30 2.3.6 Green human capital

2.3.7 Green structural capital ccc cccecesceeeeneceseneecaeesesecesecsesaeeseeecseesecneeeeeetieesssenes 30 2.4 Hypothesis development and Proposed Research model - c cc s22 srrrsss 31 CHAPTER 3: RESEARCH METHODOLOGY 37 ENMIi‹iiiiidiẳiiẳiaiẳaaẳậẳaẳắẳẶẮẶẮẶ 37 3.2 MeasuremeTi 0 201 221121122111 21 1121211111212 011 1111121110120 15 11115 010 t1 TH1 011kg ky 37

3.2.1 Green job analysis

3.2.2 Green recuitment and selection cee eeceeceeeceeeeenseceneceeessenenenseseesneeneseeneesneens 38

CO ca nn .e- 38 3.2.4 Green peTformance aSS€SSIN€TIE 0 0200201 2122110101111 111111211 122101 201110111 rxrrryg 38 3.2.5 Green human €apIfaÏ c1 1121221121121 121 2215512121112 11 12 0111211 1101111111 18x rret 39 3.2.6 Green structural €apIfaÌL - : c2 1121121121211 551121212 151111211 2111212112112 011 1111111 xe rret 39 3.2.7 Environmental perfOrIanCe - 2 221121121121 121 2221212211213 212 101011211201 011 01 11g grky 40 3.2.8 Sustainable peTÍorImance c2 201221121211 151121 121211121111 211 1011011211012 111 111 1x rret 40

Green Human Resource Management

Green Intellectual Capital

Sustainable Performance

Green Innovation

Business Sustainability

Resource-based view theory

World Commission on Environment and Development Intellectual Capital-based View

LIST OF FIGURES

Figure 2.1 Empirical result summary of prior research

Figure 2.2 Research variables model

Figure 2.3 Measurement item & sources

Figure 2.4 Proposed research model

Figure 2.5 Summary of hypotheses testing

Figure 3 Conducted research plan

CHAPTER 1: OVERVIEW

1.1 Background

Companies characterized by profit-oriented activities are changing rapidly Today, businesses and the corporate world have realized that people are at the center of all activities This has transformed the corporate world, bringing about corporate sustainability and creating long-term value for consumers and employees, especially through the development of "green" strategies The " Green" strategy focuses on the natural environment by considering all aspects of business operations and their social, cultural, economic and environmental impacts

From a resource-based perspective, human resources are considered firm-specific resources These cannot be easily copied by competitors and can create a unique competitive advantage for your company Against this background, it is thought that collaboration between human resources and environmental issues in companies may have a synergistic effect To differentiate themselves from competitors, companies often invest in practices such as unique differentiation practices and the internalization of values and attributes associated with management This means everything from recruiting environmentally conscious employees, to investing in selection processes that assess candidates’ commitment and consistency with people and the environment, to training that makes clear a company's environmental and social commitments and desired attitudes This is reflected in a series of measures ranging from the provision of and performance reviews and rewards that add value to the company's sustainable goals Furthermore, this workforce must be able to demonstrate a "green culture" and provide society with products and services that are focused on the sustainability of the planet In other words, green human resource management (HRM) is a trend

Green HRM is still in the early stages of development, with some companies following green practices and others using green HRM as a human resources strategy that supports pro- environmental corporate management Conversely, firms without a comprehensive program of green HRM have potential limitations, resulting in ineffective environmental management Environmental human resource (HR) practices help enhance processes by improving efficiency, eliminating environmental waste, and fostering green behavior, resulting in greater efficiency and cost reduction Whether a company’s desire to become sustainable is supported and/or influenced by green HRM practices such as green analysis and job descriptions, green recruitment and selection, green performance assessment, green human capital, and green structural capital, green relational capital It's still unknown

Besides, a robust relationship between GIC and business sustainability, and the results highlighted a significant relationship in emerging economies This study suggests that business sustainability depends on GIC Green intellectual capital encourages organizational transformation, continuity, and achievement in consistently growing industries, and it is a

significant measure of a company’s competitiveness for a knowledge-based economy These strengths build upon the firm’s human capital and other modes where knowledge is mutually ingrained in the organization holistically Therefore, indicated by the improvement in unique innovations, intellectual capital embodies a crucial foundation of profound innovation Sustainability performance is considered a new age trend This also motivated the research team to choose the topic “ GHRM and GIC affect sustainable performance: Analyzing factors and specific evidence of influence that comes from organizations in Viet Nam" The research team aims to bring a practical perspective on the role of green human resource management and green intellectual capital in organizational sustainability

1.2 Research objective

1.2.1 Overall objective

Analyzing, evaluating, and testing the green human resource management (GHRM) practices and green intellectual capital ( GIC) in enhancing sustainability in manufacturing organizations

1.2.2 Detail objective

From the general objective, the specific objectives be set out in the study are as follows:

e The first objective is to analyze, evaluate, and test the impact of green analysis and jobs on the sustainability performance of companies in VietNam

e The second objective is to analyze, evaluate, and test the impact of Green recruitment and selection on the sustainability performance of companies in VietNam

e The third objective is to analyze, evaluate, and test the impact of the Green training on the sustainability performance of companies in VietNam

e The fourth objective is to analyze, evaluate, and test the impact of Green performance assessment on the sustainability performance of companies in VietNam

e The fifth objective is to analyze, evaluate, and test the impact of Green Human Capital

on the sustainability performance of companies in VietNam

e The sixth objective is to analyze, evaluate, and test the impact of Green Structural Capital on the sustainability performance of companies in VietNam

e The final objective is to analyze, evaluate, and test the impact of Green Relational Capital on the sustainability performance of companies in VietNam

1.3 Research problems

The substantial focus on achieving corporate sustainability has necessitated the implementation of green human resource management (GHRM) practices Green human resource management (GHRM) practices can help organizations align their business strategies with the

environment The purpose of this paper is to reveal the industries’ perspective of the impact of GHRM practices (i.e green analysis and job descriptions, green recruitment and selection, green training, green performance assessment) and GIC (green human capital, green structural capital, and green relational capital)

CHAPTER 2: LITERATURE REVIEW

2.1 Overview and summary of previous findings

Organizations believed their operations had very little effect on the environment The depletion of resources and pollution were the outcomes of this insignificant viewpoint and behavior Businesses then adopted environmental obligations and adhered to conserving nature

as a result of an increase in environmental challenges Previous studies have established a connection between corporate sustainability and higher profits as well as lower costs for materials, energy, water, and waste These research also linked lower recruiting and attrition costs, higher worker productivity, and a decrease in both operational and strategic risks for corporations Besides that, organizations and the business community have come to the realization that people are the core of all activity This has transformed the business landscape and given rise to corporate sustainability, which, by implementing a "green" strategy, generates long-term value for a variety of stakeholders, including customers and staff This strategy prioritizes the environment by taking into account all aspects of corporate operations and their effects on the social, cultural, economic, and environmental spheres It also takes into account green hiring and selection practices, green training, compensation and benefits, and employee involvement

In recent years, an increasing number of businesses are implementing sustainable practices, which are heavily impacted by people Humans who have a positive attitude toward the environment and a sense of responsibility for their actions that may have an impact on the environment are the only ones that carry out green-oriented management practices Green human resource management (GHRM) practices range from the hiring of employees with environmental awareness to investing in selective processes that evaluate a candidate's commitment and coherence with respect to people and the environment (Saeed et al., 2018), offering training that clarifies the company's environmental and social commitments and desired postures, and performance evaluations and rewards that give value to the company’s sustainable goals (Gholami, Rezaei, Saman, Sharif, & Zakuan, 2016; Yong, Yusliza, Ramayah, & Fawehinmi, 2019) are important In short, GHRM, or green human resource management, is popular Furthermore, GHRM plays a critical role in the establishment of environmentally friendly policies and standards within enterprises The authors contend that in order to achieve corporate sustainability, some components must be provided by GHRM practices Because of this, current research highlights the value and potential of GHRM in attaining business sustainability However, especially in this new area of study, there is scant evidence in the scholarly literature that confirms the link between GHRM practices and business sustainability Green HRM is still in the early stages of development, with some companies following green practices (Jain & D'lima, 2018) and others using green HRM as a human resources strategy that supports pro-environmental corporate management (Bombiak & Marciniuk-Kluska, 2018) Further, Jackson and Seo (2010) state that firms that are proactive in terms of “greening” may be more productive, resulting in competitive advantage Conversely, firms without a comprehensive program of green HRM have potential limitations, resulting in ineffective environmental

management (Renwick, Jabbour, Muller-Camen, Redman, & Wilkinson, 2015) By increasing productivity, reducing environmental waste, and encouraging environmentally friendly behavior, environmental human resource (HR) strategies contribute to process enhancement and cost savings The question of whether green HRM practices, such as green analysis and job descriptions, green recruitment, green selection, green training, green performance evaluation, and green rewards, support and/or impact a company's goal to become sustainable remains unsettled

In addition, Examining the relationship between sustainability and green intellectual capital (GIC) is crucial given the growing worldwide awareness of environmental issues The GIC creates environmental-friendly, pro-environment, and corporate culture-friendly programs GIC has demonstrated its dedication to protecting the environment and promoting environmental care by embracing sustainable development and the green culture (GC) (Paill et al., 2014; Roscoe et al., 2019) GIC is a novel idea for organizations and has a big influence on how companies create value

The social, economic, and environmental performance are the three facets of the sustainability triple bottom principle The ability to maintain the aforementioned three aspects of

a human system over time is referred to as sustainability, and these three pillars are mutually supporting Most of the material that is currently available focuses on the economic and environmental aspects of sustainability; however, there is scant evidence in the literature about the social side of sustainability In addition, it was said that there is a two-way or circular relationship between the social dimension of society and the social attribute or dimension of a corporation A human system's ability to maintain social sustainability is said to be founded on a number of moral precepts, including justice, equity, fairness, and participation The social sustainability characteristic of society and business is linked to sustainable human resources management (HRM) practices

Asserted further that a particular growth standard that equally favors social, environmental, and economic factors is desperately needed The concepts and real-world applications of sustainable development, which aid organizations in achieving sustainability, are not well documented in the literature or other available data Later on, discussed the value of a company’s proactive environmental strategy and environmental reputation from the perspective

of the natural resource-based view theory (NRBV) It improves environmental performance, eco- innovation, reputation, and business performance The implementation of human resources management practices was crucial in achieving organizational sustainability They added that in order to be sustainable, modern human resource management practices needed to have a long- term focus Additionally, they said that these practices needed to satisfy the needs of all parties involved in the business, including stakeholders Modern green HRM practices help to ensure performance that is socially, economically, and environmentally sustainable in order to achieve this goal The company’s environmental performance relates to the creation of environmentally friendly products, while its social performance relates to how well it manages and controls its human resources

2.2 Theories

An organization can be thought of as a collection of organizational, human, and physical resources, according to the resource-based view theory (RBV) Examples include brand names, in-house knowledge, skilled manpower, efficient procedures, and machinery and trade contracts These resources are valuable, rare, and cannot be easily imitated by others Possessing such resources provides strategic competitive advantage over competitors in the marketplace (Wernerfelt, 1984) Businesses have a variety of assets, and these assets are very important to them because they allow them to compete and survive in the marketplace Buildings, machinery, products, and other tangible assets are examples of tangible assets; intangible assets are other types of assets are trademarks and goodwill, but among these resources, intellectual capital and human resources are the most crucial ones Further, in the literature on strategic management, the applications and implications of RBV have led to an increased convergence of strategic HRM and strategic management in general (Wright et al., 2001) Without these resources, no organization obtains competitive advantage The significance of HR practices and sustainability has been emphasized by scholars’ growing focus on sustainable strategy Using the RBV lens, Jabbour and Santos (2008) show how HR practices and organizational sustainability are related In a similar vein, Jackson and Seo (2010) claim that businesses that focus on greening their human resources may see increases in productivity and a gain in market share A key function of HRM is to find sustainable organizations Managers are focused on human attributes that contribute to firms’ sustainability due to various factors such as institutional and societal pressures, evolutionary processes, regeneration, organizational competitiveness, and the desire to optimize natural resources whenever possible (Sehnem, Vazquez-Brust, Pereira, & Campos, 2019) focus managers

on human attributes that contribute to firms’ sustainability (Macke & Genari, 2019) Strict policies regarding natural resources are established for HR departments (Renwick et al., 2015) Intellectual Capital-based View (ICBV) theories by Reed et al (2006) were used in this study Generally, ICBV concentrated on intangible or intellectual resource measurement which categorized them in three classifications namely human capital, structural capital and relational capital

Figure 2.1 Empirical result summary of prior research

Modera Year | Article title Authors Source title Independent variable variable - ting Dependent variable Types of research Result

2019 |Pathways Jing Yi Yong,|Business |Green Sustainability |Quantitative |H1 Green analysis and jc towards Mohd-Yusoff|Strategy analysis and description => sustainabi sustainability | Yusliza, andthe |job (b = -.105, p = 180): not

in Thurasamy |Environm |description supported

manufacturing | Ramayah, ent Green H2 Green recruitment = organizations: |Charbel Jose recruitment sustainability (b= 244, p Empirical Chiappetta Green reward <.01): supported evidence on l|Jabbour, Green H3 Green selection => the role of Simone performance sustainability (b = - 015, green human |Sehnem, assessment = 472): not supported resource Venkatesh (Green H4 Green training => management |Mani performance sustainability (b = 264, p

evaluation) 0.1): supported Green HS Green performance selection assessment => sustainabi Green training (b = 009, p = 484): not

supported H6 Green rewards => sustainability (b = 074, p

= 325): not supported

2020 |Do green Noor Ullah |Departme |Green Sustainability |Quantitative |H1: Green human resourc human Khan, nt of selection and management practices -> resource Mansoor Human |recruitment, sustainable performance Management |Nazir Bhatti, [Resource |Green =.210, p=.000 ) =>

practices Asfia Obaid, |Managem |training and Accepted

contribute to |Abdul Sami, |ent development, Hla: Green recruitment a sustainable Abrar Ullah Green selection -> sustainable performance assessment performance (b = 291, p

in rewards, 000) => Accepted manufacturing Green human H1b: Green training and industry? resource development -> sustainab

management performance (b = 117, p

= 003) => Accepted Hc: Green assessment a rewards -> sustainable performance (b = 062, p

= 113) => Reject

2020 |Empirical Dr African {Green Sustainability |Quantitative |Green Recruitment & evidence on |Mohammed |Journal of |Recruitment Selection -> sustainable impact of E Alharbi Hospitalit |& Selection performance (b = 0.632, green human y, Tourism|Green < 0.01) => Accepted resource and Environmenta Green Environmental management Leisure |] Training Training (b = 0.733 , p- practices and Green 0.01 ) => Accepted organizations Performance Green Performance sustainability Evaluation Evaluation (b = 0.693 ,

Green 0.01 ) => Accepted Rewards Green Rewards ( b =

0.799 , p< 0.01 ) => Ace

2022 |Green Human | Awwad Saad |Frontiers |GHRM GI Sustainable {Quantitative |H1: GHRMP -> SP (b= Resource Awwad Al- fin practices performance, 0.277, p = 0.000): suppor Management |Shammari, |Environm |(Green hiring, Green H2: GHRMP -> GI (b = and Shaher ental Green training innovation 08136, p = 0.000): suppo:

between green H3: GHRM -> GHRM and compensation, Organizational Sustainab Sustainable human (b=0.758, p=0.000): Performance resource supported

in Qatar performance H4: Employee Behaviour

management Sustainable Performance system, and (b=0.137, p=0.000): green supported recruitment) H5: GHRM -> Employee

Behaviour (b=0.774,

p=0.000): supported H6: Organizational

Sustainability -> GHRM Sustainable Performance: supported

H7: Employee Behaviour GHRM -> Sustainable Performance: not support

between green | Weiying Research

intellectual Jiang &

2020 |Nexus Hafeez Ullah |Environm |green human [IT Business Quantitative ]H1: Green human capital between IT & Zhuquan |ental capital capability |sustainability business sustainability capability and | Wang & Science |(GHC), green (b=0.221***, p value = green Shahid Bashir] and structural 0.000 < 0.01): supported intellectual & Abdul Pollution |capital (GSC), H2: Green relational capi capital on Razzaq Khan |Research |and green >business sustainability sustainable & Madiha relationship (b=0.210***, p= 0.000 < businesses: Riaz & capital (GRC) 0.01): supported evidence from | Nausheen H3: Green structural capi emerging Syed >business sustainability economies (b=0.107***, p= 0.000 <

0.01): supported

H4: IT*GHC ->business sustainability (b=—0.033, p = 0.000 < 0.01): supported H5: IT*GRC ->business sustainability (b=—0.100***, 4

0.000 < 0.01): supported

H6: IT*GSC ->business sustainability (b=0.142**

= 0.000 < 0.01): not supported

2019 |Do All Yusoff, Journal of |GIC (green Business Quantitative

Elements of |Yusmazida |Cleaner {human capital sustainability H1: GHC -> BS : b= 0.02

Green Mohd; Omar, |Production|(GHC), green p= 0,354 : not supported

Intellectual Muhamad structural H2: GSC -> BS : b= 0.28

Capital Khalil; capital (GSC) p= 0.002 : supported

contribute Kamarul and green H3: GRC -> BS : b= 0.46 toward Zaman, relational p= 0.000: supported Business Maliza capital

Sustainability? | Delima;

Evidence from | Samad, (GRC))

the Malaysian |Sarminah

in Mohammed capital, Green Hic GHC -> SP (b=0.3 Manufacturing |A Al rational p < 0.01): supported Industries Doghan, capital) H2a GSC -> EP (b = 0.3’

Bahadur Ali p < 0.01): supported Soomro H2b GSC -> ENP (b =

0.309, p <0.01): supporte

H2c GSC -> SP (b= 0.1

p < 0.01): supported H3a GRC -> EP (b = 0.3

p < 0.01): supported H3b GRC -> ENP (b = 0.202, p< 0.01): support H3c GRC -> SP (b= 0.3

p < 0.01): supported H4a GHC -> GC (b= 0.2

p < 0.01): supported H4b GSC -> GC (b= 0.2

p < 0.01): supported H4c GRC -> GC (b= 0.2

p < 0.01): supported

HSa GC -> EP (b=0.311

< 0.01): supported HS5b GC -> ENP (b= 0.1

p < 0.01): supported HSc GC -> SP (b = 0.03¢

= 0.462): not supported H6a GC -> GHC -> EP ( 0.109, p <0.01): supporte H6b GC -> GSC -> ENP

= 0.113, p< 0.01): suppo H6c GC -> GRC -> SP ( 0.029, b = 0.721): not supported