Impact of GHRM and innovation capabilities on organizational performance: the role of digital transformation and green leadership

Purpose This study marks an empirical endeavor utilizing innovation capabilities (IC) and green human resource management (GHRM) practices that enhance organizational performance (OP). This study also explored the magnificent role of digital transformation (DT) between GHRM practices and innovation capabilities in organizational performance. Design/methodology/approach The data were collected from 418 respondents from manufacturing firms and applied the partial least squares structural equations model (PLS-SEM). Findings The findings show that innovation capabilities and GHRM practices have built a significant relationship with performance. The results also revealed the moderating role of green transformational leadership (GTL) in the relationships between innovation capabilities, GHRM practices and digital transformation (DT) as well as the mediating role of digital transformation in the relationships between innovation capabilities, GHRM practices and organizational performance. Practical implications This research further proposed practical and theoretical directives for managers and researchers that strategically plan the adoption of digital technologies with green practices in the firms for a green environment. Originality/value This study guides managers and policymakers on how GHRM practices, innovation capabilities, digital transformation and green transformational leadership enable firms to achieve organizational performance.