Green Human Resource Management: Fostering Employee Wellbeing and Environmental Performance in the Wine Industry

Green Human Resource Management: Fostering Employee Wellbeing and Environmental Performance in the Wine Industry

Copyright: © 2024 |Pages: 18
DOI: 10.4018/979-8-3693-3486-7.ch004
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Abstract

This study delves into the influence of green human resource management (GHRM) on the environmental achievements (green performance, GP) of Spanish wineries, examining how employee wellbeing (EW) plays a mediating role. To refine the analysis, factors like age, size, and affiliation with protected designation of origin (PDO) areas are considered. Utilizing a model informed by prior research, the study analyses data from 196 Spanish wineries, collected from September 2022 to January 2023, through partial least squares structural equation modeling (PLS-SEM). Results highlight a robust, positive correlation between GHRM initiatives and wineries' GP, with EW acting as a significant intermediary. This research stands out for several reasons: it broadens the comprehension of GHRM benefits, marks the first detailed exploration of GHRM's effect on GP specifically within Spanish wineries, and is pioneering in investigating EW's mediating influence on the GHRM-GP link.
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Introduction

In today's world, the push towards sustainability has become a central focus across all sectors of the economy (Lăzăroiu et al., 2020). This shift towards eco-friendly practices represents not just a compliance with regulatory mandates or adaptation to changing consumer demands, but is also a manifestation of a growing global consciousness about the environmental footprints left by human endeavors (Tsalis et al., 2020).

Specifically, the wine industry, with its intrinsic reliance on the vitality of ecosystems, stands at the forefront of sectors that can greatly benefit from embracing sustainable methodologies. Yet, the pursuit of sustainability in winemaking extends well beyond simple measures like conserving water or managing soil health. It necessitates a comprehensive and forward-thinking approach to all aspects of operations, including the role of Green Human Resource Management (GHRM). GHRM is emerging as a pivotal element that influences not only the environmental performance of vineyards but also contributes significantly to Employee Wellbeing (EW) (Amrutha and Geetha, 2020). This research delves into understanding how GHRM acts as a driving force not only in elevating the environmental standards of wineries but also in promoting employee satisfaction, thereby fostering a positive feedback loop that strengthens overall sustainability efforts.

GHRM, encompassing practices from eco-friendly hiring and skill development to rewarding sustainable employee behaviors, serves as a cornerstone for promoting an ethos of environmental stewardship. This approach not only bolsters operational effectiveness and minimizes ecological detriment but also cultivates a workplace that is both fulfilling and conducive to employee engagement (Pham et al., 2020). Specifically, within the viticulture industry, GHRM's application yields immediate and impactful benefits. It encourages innovations in sustainable operations, like recycling, minimizing waste, and optimizing resource utilization, thereby significantly enhancing the vineyard's Green Performance (GP) (Marco-Lajara et al., 2023a). Moreover, by prioritizing the physical and psychological well-being of staff, ensuring they are knowledgeable and empowered, GHRM creates a safer, more vibrant working environment. This atmosphere not only motivates employees to engage more eagerly in eco-friendly activities but also elevates overall productivity (Montalvo-Falcón et al., 2023a). A notable ripple effect of promoting Employee Wellbeing (EW) is the transformation of satisfied employees into ambassadors for the company's ethos, spreading sustainable practices within and beyond the organization's premises. This outward expression of internal values enhances the brand's reputation and societal acceptance, establishing a virtuous cycle that amplifies both the vineyard's internal sustainability and its public image (Nisar et al., 2021; Benevene and Buonomo, 2020).

The present research aims to answer the following two Research Questions (RQs): (RQ1) does the GHRM have an effect on the GP of wineries? and (RQ2) does the EW mediate the relationship between the GHRM and the GP of wineries? To answer these RQs, a theoretical model is proposed through the literature review developed, which is subsequently contrasted by structural equation modeling with primary data from 196 Spanish wineries collected between September 2022 and January 2023. The selection of the Spanish wine context as the research context under study is based on several key pillars that highlight its suitability. First, the Spanish wine industry has a rich heritage that is intertwined with the cultural, economic and agricultural history of the Iberian country (Muñoz et al., 2020), thus providing a fascinating historical backdrop for the development of the study. Second, Spain is the world's largest exporter by volume according to the latest data provided by the International Organization of Vine and Wine, boasting an impressive diversity in terms of appellations, grape varieties and microclimates (García-Cortijo et al., 2021). Third, it is imperative to recognize that Spanish winemaking has experienced renewed pressures due to climate change, including unpredictable weather patterns and emerging threats to terroir sustainability, with these challenges acting as catalysts for innovation and revision of old practices, as well as creating a scenario where urgency and necessity can drive more rapid and responsive adoption of GHRM.

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