Driving supply chain performance through digital HRM: The mediating role of green orientation and the moderating role of green innovation

Abstract

Design/Methodology: This study involved supply chain managers in manufacturing companies in DKI Jakarta and West Java Provinces, Indonesia. The reason is that these two provinces had many manufacturing companies and were two of the largest industrial cities in Southeast Asia. Based on the survey conducted, there were 160 questionnaires distributed. However, the data that meets the requirements is 145 and can be processed further. This study used the Structural Equation Model (SEM) analysis technique using Partial Least Square. 

Findings: This study has confirmed a number of findings including: (1) Digital HRM had a positive and significant influence on SC performance, (2) Digital HRM had a positive and significant influence on green orientation, (3) Green Orientation had no positive and significant influence on SC performance, (4) ) Green Orientation did not mediate the effect of Digital HRM on SC performance, (5) Green Innovation had a positive and significant influence on green orientation and Green Innovation did not moderate the influence of digital HRM on SC performance.

Research Limitation/Implications: This study only focuses on the scope of Digital Human Resource Management (DHRM) on Supply Chain Performance (SCP). The mediating role of Green Orientation and the moderating role of Green Innovation in research findings did not have a significant contribution. The next study is expected to examine the concept of digital HRM which is not only oriented towards green orientation and green innovation in manufacturing companies. Other considerations are needed such as digital entrepreneurship, digital business and digital skills which are currently developing in the world and even in Indonesia. This is because Digital entrepreneurship, digital business and digital skills are one of the supporters of economic growth and company performance in a sustainable manner. 

Managerial Implication: This study is expected to be a reference for practitioners, especially in the field of Digital Human Resource Management (DHRM) on Supply Chain Performance (SCP). Furthermore, the concept of digital HRM by organizations can be used as an effective alternative in continuously improving SC performance in manufacturing companies in Indonesia. 

Theoretical Implication: The findings of this research provide a theoretical contribution related to the pattern of relationship between digital HRM and SC performance, although green orientation did not mediate the pattern of relationship between digital HRM and SC performance, likewise, green innovation did not mediate the pattern of relationship between digital HRM and SC performance. However, these two aspects can be an important focus in this research and must be considered for further research. 

Originality/Value: This study has originality because it examines the role of digital HRM on SC performance which is still very rarely researched especially when it is associated with the mediating role of green orientation and green innovation.