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<p>While Green Human Resource Management (GHRM) is established as a driver of sustainable performance, how it interacts with broader operational paradigms like the Circular Economy (CE) remains poorly understood. This study moves beyond examining GHRM in isolation by proposing and testing a novel model where CE acts as a strategic moderating context that unlocks the full potential of HR systems. Using survey data from 308 respondents in Indonesian manufacturing and PLS-SEM analysis, we find that while Green Training (GT) directly fosters sustainability, its effect is not enhanced by CE. Crucially, however, CE significantly amplifies the relationship between High-Performance Work Systems (HPWS) and Sustainable Performance. This indicates that CE principles transform HPWS from a general performance-enhancing tool into a dedicated engine for sustainability. Our findings challenge the universal applicability of GHRM models and provide a new, contingency-based perspective: the sustainability payoff from HR investments is highest when they are strategically embedded within a circular operational framework. This offers a refined roadmap for managers seeking to align human capital with circular transition goals.</p>

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Circular Economy as a Catalyst: Exploring the Impact of Green Training and High-Performance Work Systems (HPWS) on Sustainable Performance

  • 期刊论文

  • 发表日期：

    2026年2月4日

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  • Ilyas Masudin,
  • Mudrifah Mudrifah,
  • Fien Zulfikarijah

摘要

While Green Human Resource Management (GHRM) is established as a driver of sustainable performance, how it interacts with broader operational paradigms like the Circular Economy (CE) remains poorly understood. This study moves beyond examining GHRM in isolation by proposing and testing a novel model where CE acts as a strategic moderating context that unlocks the full potential of HR systems. Using survey data from 308 respondents in Indonesian manufacturing and PLS-SEM analysis, we find that while Green Training (GT) directly fosters sustainability, its effect is not enhanced by CE. Crucially, however, CE significantly amplifies the relationship between High-Performance Work Systems (HPWS) and Sustainable Performance. This indicates that CE principles transform HPWS from a general performance-enhancing tool into a dedicated engine for sustainability. Our findings challenge the universal applicability of GHRM models and provide a new, contingency-based perspective: the sustainability payoff from HR investments is highest when they are strategically embedded within a circular operational framework. This offers a refined roadmap for managers seeking to align human capital with circular transition goals.