ANTECEDENTS AND CONSEQUENCES OF SUSTAINABLE HRM: EMPIRICAL EVIDENCE

Abstract

Over the past two decades, technological developments, globalization, and several other competitive challenges have caused dramatic changes within and across organizations in their decision-making. These concerns contribute to a lasting impact on Human Resource Management (HRM), both at functional and strategic standpoints. HRM practices have been considered critical for the growth story of an organization and its importance is quickly expanding among the research spheres. Nevertheless, soon after the advancement and maturity of Strategic Human Resource Management (SHRM), the Human Resource function is currently on the brink of a paradigm shift, by enabling itself for the second wave of revisionism and is termed as Sustainable Human Resource Management (SUHR). SHRM, on the basis of Resource Based View primarily focuses on the ways in which the people and HR practices contribute to the sustained competitive advantage and financial performance of the firm. The notion of Sustainability in HRM, envelopes more than the endurance and Triple Bottom Line (TBL) approach, but refers to the resource generation and development. Sustainable HRM enables the organization to promote themselves as very much responsible among potential and existing employees and to attract and retain high quality employees, thereby enhancing their Employer Attractiveness aspect. Sustainable HRM supports organizational goal achievement process by reproducing the HR base over a long-lasting calendar time, to achieve employee wellbeing and long-term viability. Based on the literature of Corporate Social Performance and Corporate Social Responsibility, Sustainable HRM stresses on the importance of social responsibility, without sideling economic rationale of the firm. Precisely, Sustainable HRM bridges the link between the much established Sustainability and HRM. An insightful literature review has revealed that Sustainable HRM has been operationalized majorly using exploratory research design and theoretical propositions are generally the outcomes provided for the future course of action. There is a dearth of empirical studies, which highlight the linkage between Sustainable HRM and other relevant latent constructs subjected to both individual and group level analysis. In this endeavor, the current research aims to propose and validate a theoretical framework, which investigates the relationship between Corporate Sustainability perceptions, Ethical Leadership, Employer Attractiveness, Employee Voice Behavior, Turnover Intentions and Sustainable HRM. Further, the study intends to elucidate the role of Moral Identity and Person Organization Fit as moderators and Trust in Management as mediator. The association between ii the above mentioned latent constructs is together formulated as the set of antecedents and consequences of Sustainable HRM. To achieve the study objectives, a theoretical framework encompassing these concepts is developed grounded on the insightful literature review. In due course, eight hypotheses are formulated to validate the proposed research framework. Data were collected using structured questionnaires, which were administered via a field survey in pharmaceutical companies operating among select clusters of India and respondents were selected based on the convenience sampling technique. Out of total 498 respondents to whom the questionnaire was circulated to, the authors received 312 completely filled responses, reflecting a response rate of 62.65%. Data were analyzed using the Structural Equation Modeling (SEM) technique. The mediating effect of Trust in Management on the relationship between Sustainable HRM and Voice Behavior and the moderating effect of Moral Identity on the relationship between Sustainable HRM and Trust in Management the was examined using Model 7 of SPSS PROCESS Macro (Moderated Mediation Analysis). The moderating effect of Person Organization Fit on the relationship between Sustainable HRM and Employer Attractiveness were examined by using Model 1 of SPSS PROCESS Macro. As hypothesized, results of the structural model endorse the significant effects of Corporate Sustainability Perceptions and Ethical Leadership on Sustainable HRM; and further that of Sustainable HRM on Employer Attractiveness and Voice Behavior. Moreover, as rightly hypothesized Sustainable HRM has shown negative influence on employee Turnover Intentions. Results from PROCESS Macro are consistent with the hypotheses and suggest that Trust in Management acts as a partial mediator and Moral Identity and Person Organization Fit moderate their corresponding relationships These results offer convincing support for the significance of Sustainable HRM and its valuable drivers and outcomes. Overall, the study offers a comprehensive framework that validates worthy interrelationships with respect to Sustainable HRM in the context of Indian pharmaceutical firms. The framework provided as part of the study would lead to further empirical examinations and guide the pharmaceutical firms in revising their operating models, with special reference to their HR function. As a final point, the empirical findings call for subsequent discussion and noteworthy implications which will be of interest for managers and professionals.