Impact of socially responsible human resource management on organizational sustainability: Evidence from SMEs in Khyber Pakhtunkhwa, Pakistan

Abstract

Socially responsible human resource management (SR‐HRM) is becoming increasingly important both for academics and managers. Therefore, the purpose of this article is to analyze the effect of SR-HRM on organizational sustainability. The four dimensional measure of SR-HRM has been used to examine its effect on organizational sustainability. Data was collected with an adopted questionnaire from a sample of 328 employees. Analysis was conducted by applying partial least square structural equation model (PLS-SEM) using SmartPLS 3.3. The results showed that in general SR-HRM has a significant effect on organizational performance. Further, legal compliance HRM, employee oriented HRM and CSR facilitation HRM has significant and positive effect on organizational sustainability, whereas insignificant effect of general CSR conduct on organizational sustainability has been observed. The study contribute to the growing body of knowledge by examining SR-HRM practices is the context of SMEs in Khyber Pakhtunkhwa, Pakistan.