JEFMS Journal

ABSTRACT:

Currently, the GHRM Practice theory is widely used to assess performance in a company. However, in its theory, GHRM practice does not always have a positive effect on a company's performance, one of the causes being pressure from the stakeholders. Specifically in the hospitality industry currently, the Indonesian government has established requirements for environmental performance practices in hotel operational activities. This research explains the effect of stakeholder pressure on environmental performance through the mediation of GHRM practice by adding a green innovation indicator in the hospitality industry. The research method used was quantitative with a purposeful-sampling technique to reach 121 employees who work in hotels operating in the Jakarta-Bogor-Depok-Tangerang-Bekasi (Jabodetabek) area of Indonesia. The study found that green innovation has a positive effect on stakeholder pressure towards environmental performance. However, this research found that there was no effect between GHRM (green hiring, green training & involvement, and green compensation) on environmental performance in the hospitality industry. It is hoped that this research on green innovation can be implemented in the hospitality industry, creating better environmental performance and can be further developed in future research.

KEYWORDS:

stakeholder pressure; environmental performance; green HRM practice (green hiring, green training and involvement; green compensation; and green innovation

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