Green HRM And Sustainability Orientation in Relation to Carbon-Reduction Performance: The Moderating Role of Perceived Vision 2030 Alignment

2.5. Literature Gap

Existing research commonly agrees that Green HRM and sustainability orientation can be used to enhance environmental and organizational performance. Nevertheless, most studies focus mainly on the direct correlations of these internal sustainability capabilities with broad environmental or financial performance indicators but do not investigate how this internal sustainability capabilities can be transferred into certain carbon-reduction outcomes (Altassan, 2025; Putra et al., 2025). Research in the Saudi context draws attention to the fact that corporate sustainability practices and ESG reporting are increasingly consistent with the national agenda of Vision 2030 (Basali & Alshahrani, 2025; Elfakharani, 2024); however, they seldom investigate whether such consistency can enhance the connection between internal sustainability practices and quantifiable environmental results. Equally, the international literature recognises that policy environments affect sustainability initiatives (Khuntia et al., 2025); however, there is little empirical research on how national policy alignment predisposes the relationship between internal sustainability capabilities and carbon-reduction performance. As such, a major gap in knowledge on how organizational sustainability capabilities can be converted to carbon-reduction performance exists under the conditioning effect of the national agenda. The novelty of this study is that it investigated Vision 2030 as a moderator to develop an understanding of the impact of the national agenda on the association between organizational sustainability capabilities and carbon-reduction performance in Saudi Arabian companies.

3. METHODOLOGY

The research design used in this study was a quantitative research design, which is a systematic empirical study involving numerical data to measure the relationships between constructs (Taherdoost, 2022). Quantitative research was appropriate in this study for testing the hypothesised relationships between Green HRM, sustainability orientation, perceived Vision 2030 alignment, and carbon-reduction performance, with moderating effects. The research is explanatory in nature and thus concentrates on the interplay between internal organizational practices and policy frameworks in shaping environmental outcomes and not describing trends.

The target group was the environmental and operations staff employed in sustainability-based businesses in Saudi Arabia. The choice of these participants was based on their direct participation in the implementation of sustainability initiatives. In this study, sustainability-based businesses are defined as organisations with official sustainability programs, environmental management processes, or sustainability functions that are in tandem with national environmental policies, such as Vision 2030. These companies were selected from industries where active environmental management is practiced, such as energy, manufacturing, construction, and service industries. A purposive sampling method was used, which (Obilor, 2023) defined as a form of non-probability sampling that entails the selection of a participant based on specified criteria that are applicable to the study aim. Moreover, the respondents were required to work in an organisation that publicly reports sustainability activities, has environmental management activities, or is in a sector where sustainability and environmental compliance activities are actively taking place.

An online questionnaire on Google Forms was used to collect the data. The invitations were sent through LinkedIn groups related to environmental and sustainability-related practices, namely, ‘Saudi Green Initiative’ and ‘Sustainability Professionals in Saudi Arabia’, which guaranteed the inclusion of professionals who were highly engaged in sustainability projects. Invitations were dispatched to 500 people, with 280 responding (response rate: 56%). The final analysis involved 250 responses that were filtered after a thorough screening of completeness, consistency, and elimination of statistical outliers. This sample size is deemed sufficient since it was sufficient to provide sound and strong results in structural modelling studies.

A G*Power analysis was performed to approximate the minimum number of participants required to reliably identify the proposed moderating effect. (Kang, 2021) claimed that it would require over 100 respondents for a significance level (0.05), statistical power (0.80) (probability of finding an effect that is true) and an effect size at α= 0.05. As the research had already 250 valid responses, the sample size was greater than the heuristic and statistical suggestions, and it increased the reliability of parameter estimates and the validity of the moderation analysis.

The questionnaire was divided into two parts (Appendix A), where the initial section included demographic data: gender, age, education, job position, and work experience. Past studies suggest that education level, professional experience, and other factors may affect sustainability awareness and engagement (El Khatib & Alsereidi, 2025). The second part examined the primary constructs, Green HRM, sustainability orientation, perceived Vision 2030 alignment, and carbon-reduction performance, on a five-point Likert scale (1 = strongly disagree to 5 = strongly agree). The validated scales used in previous research (Jin et al., 2019; Martusewicz et al., 2025; Tang et al., 2018) served as the foundation of items, which were modified to be content valid and contextually appropriate for Saudi organisations.

PLS-SEM was used to analyse the collected data, which (Hair et al., 2021) defined as a variance-based structural modelling method employed in prediction-focused and exploratory theory testing. This is appropriate in cases where the study is aimed at explaining a variance, moderation analysis, and complex latent constructs, as opposed to rigid theory confirmation. PLS-SEM was selected for several reasons. First, the research examines the moderating impact of perceived Vision 2030 alignment, which is better served with predictive modelling methods. Second, the model has several latent variables that are reflected in the indicators. Third, PLS-SEM does not assume a multivariate normal data distribution and works well with non-probability samples. All constructs in this study were defined as reflective measurement models because the indicators were manifestations of the latent variable and were supposed to be correlated.

Furthermore, discriminant validity was estimated using the heterotrait-monotrait ratio (HTMT), which has higher reliability and sensitivity than the traditional Fornell-Larcker criteria used to determine the lack of discriminant validity (Afthanorhan et al., 2021). The measurement model was used prior to testing the structural relationships to determine the reliability and validity of the measurement models. Cronbach’s alpha and composite reliability were used to determine construct reliability, whereas the average variance extracted (AVE) was used to determine convergent validity.

Harman single-factor test was done to measure the common method bias. The initial unrotated factor contributed 34.2% of the total variance, which is less than the 50% that (Howard et al., 2024) recommend, indicating that common method bias is unlikely to have a significant impact on the results. Furthermore, the variance inflation factor (VIF) was considered to identify possible collinearity and bias of the method, with the suggested value ranging between 3 and 5 (Hair et al. 2006, cited in Jeng, 2023). The inner VIFs were all between 1.32 and 2.41, which is far below the recommended value, thus indicating that no serious issues of common method bias existed. Moreover, non-response bias was determined using early and late respondents, and independent sample t-tests showed no statistically significant differences, which implied that there was little non-response bias in the dataset.

The study was conducted in accordance with high ethical standards. The respondents were informed of the purpose of the study, and participation was voluntary and anonymous. Consent was provided electronically, and participants were free to withdraw at any point without penalty. No personally identifiable information was gathered, and the data were kept in a safe place to be used only in an academic sense.

4. RESULTS

4.1. Descriptive Analysis

Table 1 presents descriptive analysis and indicating that the sample mainly comprised male professionals (62%), with the highest age bracket of 25-34 years (43.2%), which implies a youthful workforce. The sample was highly educated, with most respondents having a bachelor’s (43.6%) or master’s degree (40.8%). The roles in the organisation differed, but technical and sustainability specialist jobs were prevalent. The experience was mixed; almost half (48%) of the respondents had 3-10 years of experience, which boosted the validity of the information relating to sustainability practices. There was a sound representation of the energy, industrial, and service industries, and more than three-quarters of the respondents indicated moderate to direct participation in sustainability initiatives, which highlights their informed opinion on environmental management.

Table 1. Descriptive analysis of 250 respondents.

4.2. Measurement Model Analysis

Table 2 presents the results of the PLS-SEM measurement model. The construct reliability and validity, followed by structural testing, suggested the following thresholds: factor loadings = 0.70, Cronbach’s alpha = 0.70, composite reliability (CR) = 0.70, and average variance extracted (AVE) = 0.50 (Hair et al., 2021; Mia et al., 2022). The factor loadings of all indicators vary between 0.824-0.909, which is above the 0.70 mark of indicator reliability. The values of Cronbach’s alpha (0.918-0.933) and composite reliability (0.939-0.949) exceed the recommended value at 0.70, which means that there is internal consistency. The AVE (0.755-0.788) were much higher than 0.50, indicating satisfactory convergent validity. In general, the constructs were sufficiently reliable and valid, indicating their appropriateness for structural analysis.

Table 2. Measurement model.

Note: Factor Loadings ≥ 0.70; Cronbach’s alpha ≥ 0.70; CR ≥ 0.70; AVE ≥ 0.50

4.3. Discriminatory Analysis

Table 3 shows the discriminant validity using the Heterotrait-Monotrait ratio (HTMT), which evaluates the presence of empirical differences between constructs. The recommended standard level is less than 0.90, or more conservatively, 0.85 (Afthanorhan et al., 2021; Cheung et al., 2023). All HTMT values are between 0.392 and 0.842 which is less than 0.85. Although the largest figure (0.842) between Green HRM and Carbon Reduction Performance is close to the threshold, it is still within a reasonable range. These findings confirm that each construct reflects a different concept, and there is no issue of multicollinearity or conceptual overlap. Consequently, an adequate level of discriminant validity was achieved.

Table 3. Discriminant validity through HTMT.

Note: HTMT threshold < 0.85

4.4. Model Explanatory Power and Predictive Relevance

Table 4 provides the coefficient of determination (R²), which measures the model’s explanatory power (Hair et al., 2021). Generally, R² values of 0.25, 0.5, and 0.75 are termed weak, moderate, and substantial, respectively. The R² of Carbon Reduction Performance is 0.669 (adjusted R² = 0.662) which has a moderate to substantial explanatory power. This implies that the predictors explain approximately 66% of the carbon reduction performance. The Q² value indicates the predictive relevance of the model, which is obtained during the blindfolding process, with values above zero implying sufficient predictive power. The Q² of 0.652 in this study indicates strong predictor relevance, meaning that the model is effective in predicting carbon-reduction performance in sustainability-oriented organisations. In general, the model has a significant explanatory and predictive strength.

Table 4. Explanatory power and predictive relevance.

4.5. Path Coefficient Analysis

The path coefficient outcomes in Table 5 reveal that the largest positive association with carbon-reduction performance is Green HRM (β = 0.524, p < 0.001), implying that the use of green recruitment, training, and sustainability-based performance systems is positively linked to carbon-reduction performance. A significant positive relationship (β = 0.230, p < 0.003) was also observed between sustainability orientation and carbon reduction performance, implying that organisations that incorporate sustainability into their strategic goals and decision-making tendencies are more effective in achieving the aim of eliminating emissions. Although the moderating coefficients (β = 0.058 and p = 0.032) are small, they are statistically and meaningfully significant. This suggests that perceived Vision 2030 alignment has a small but significant strengthening impact on the connection between organizational sustainability practices and carbon reduction performance. Moreover, the model does not contain any control variables; therefore, the results must be interpreted cautiously.

Table 5. Path coefficient.

Note: Asterisks show significant paths: ** = 0.05 (5%), and *** = 0.01 (1%)

5. DISCUSSION

The study found a positive relationship between Green HRM and carbon reduction performance, confirming H1 (β = 0.524, p < 0.001). This means that sustainability-related HR practices are closely linked to organizational carbon reduction results among Saudi sustainability-oriented companies. Notably, in this case, it indicates an association and not causality because of the cross-sectional design. This result is consistent with previous studies that propose that Green HRM enhances environmental abilities and employee involvement, which are associated with environmental performance (Ahmad et al., 2023; Kumar et al., 2025). With support for H1, it can be suggested that to achieve stronger emission control outcomes, Saudi firms need to embed environmental responsibilities into their day-to-day workplace and employee management practices.

The findings supported H2 as sustainability orientation had a positive and significant association with carbon-reduction performance (β = 0.230, p < 0.003). This indicates that organisations that exhibit greater strategic dedication to environmental responsibility are more likely to focus on carbon reduction efforts in their business operations. Sustainability orientation in Saudi sustainability-oriented firms is associated with a managerial focus on environmental performance, whereby firms can incorporate emissions reduction into larger organizational objectives. Nevertheless, the relatively moderate scale of the connection suggests that strategic sustainability commitment cannot necessarily be transformed into robust carbon reduction results in the absence of well-organised implementation instruments. The results also align with earlier research demonstrating that sustainability orientation is associated with better environmental results through its influence on organizational strategies and decision-making processes, leading to environmental responsibility (Agyapong et al., 2023; Nurulasiah et al., 2022; Mah et al., 2023). Therefore, organisations should make efforts to reflect their sustainability commitments in their operations so that intentions for the strategic environment can provide measurable improvements in the environmental context.

The greater impact of Green HRM on sustainability orientation can be attributed to the operational characteristics of HR practices that directly influence employees’ behaviour and the implementation of environmental programs (e.g., green recruitment, sustainability-driven performance appraisals, and environmental training). In comparison, sustainability orientation tends to be more indicative of larger-scale strategic purposes or corporate values, long-term environmental ambitions, or organizational vision, which are less directly concerned with the actual performance of operations on a daily basis. This difference underscores the fact that strategic orientation defines the path, but HR-led practices are the real tools that transform these intentions into quantifiable carbon-reduction results. It can be suggested that more benefits can be gained from having sustainability systems that are actionable rather than having mere general commitments to the environment. Thus, Saudi firms need sustainable mechanisms that can be implemented operationally.

The difference in effect size (0.524 and 0.230) also indicates that operationally embedded practices are more likely to generate a stronger measurable environmental result than strategic intents. Green HRM is directly associated with employee competencies, accountability infrastructure, and daily environmental practices that are directly related to carbon management efforts. Sustainability orientation, on the other hand, represents more general organizational values and strategic commitment that might require more implementation mechanisms before being translated into measurable operational results. This can also be indicative of the transitional phase of sustainability implementation in the Saudi Arabian environment under Vision 2030, whereby most companies have yet to translate strategic sustainability commitments into fully institutionalised operational systems.

The findings indicate that Perceived Vision 2030 alignment enhances the relationship between Green HRM and carbon-reduction performance (β = 0.058, p = 0.008), which validates its moderating role and supports H3. This means that HR-related environmental practices are more closely linked to carbon reduction results in circumstances when employees perceive that their organisations are guided by the national decarbonisation agenda in the institutional direction. In the case of Saudi companies, this underlines the need to make internal sustainability practices (green recruitment, hiring, training, and appraisals) consistent with the policy priorities of Vision 2030. These results are consistent with the literature, which proposes that sustainability policies and regulatory frameworks enhance the effectiveness of internal environmental practices by promoting the alignment of managerial systems with institutional expectations (Khuntia et al., 2025; Liu et al., 2025; Soussi et al., 2025). These findings suggest that to achieve strong organizational environmental outcomes, policymakers need to encourage firms to make visible connections between their internal sustainability systems and the Vision 2030 agenda.

The findings support H4 as Perceived Vision 2030 alignment moderates the relationship between sustainability orientation and carbon reduction performance (β = 0.032, p < 0.010). This implies that sustainability-related organizational values are positively associated with carbon reduction results when employees perceive that firms match their environmental priorities with the national decarbonisation course established within the framework of Vision 2030. For organisations, this means that aligning corporate sustainability strategies with national climate priorities can contribute to changing general environmental commitment through more systematic carbon management activities. These results are in line with other prior studies that show that national sustainability agendas and climate policies steer organisations to align internal environmental strategies with overall policy goals, enhancing environmental performance results (Basali & Alshahrani, 2025; Elfakharani, 2024). Importantly, the results of this study are consistent with those of (Altassan, 2025), who conducted a study in the UAE regarding the impact of national visions on sustainability, but differ in the strength of the effect, which may reflect the difference in the degree of maturity of green infrastructure between the two countries. These results imply that when firms align their sustainability approaches with national goals, they may have better organizational coordination and consistent environmental performance improvements.

In this regard, one can find that Vision 2030 may be seen as an institutional setting that is associated with the operationalization of sustainability-oriented approaches by firms. However, the moderating coefficients (0.058 and 0.032) are small, indicating that although policy alignment has a positive influence, other aspects may also moderate the association between internal capabilities and strategic orientation with carbon-reduction performance (organizational culture, resource constraints, or implementation fidelity). This implies that Vision 2030 offers guidance and validity but is not the sole factor defining organizational efficiency.

The institutional and sustainability governance literature implies that relatively small moderation effects are prevalent because policy and institutional variables tend to be associated with organizational outcomes indirectly and not as the driving operational factors. For example, (Gauthier, 2013) institutional sustainability research established that institutional pressures primarily work in interactive and reinforcing ways rather than having significant direct operational impacts. Moreover, research on corporate sustainability governance has demonstrated that the institutional context tends to reinforce already established sustainability systems at an incremental level, not in terms of transforming operational outcomes (Pasamar et al., 2026; Ortiz-de-Mandojana et al., 2016). Thus, the moderation coefficients are relatively small in the context of this study, which is consistent with institutional theory and studies on sustainability governance, where policy alignment tends to strengthen, legitimise, and sustain organizational sustainability capabilities rather than supplanting the internal drivers of operations.

Notably, the results do not merely substantiate the essence of sustainability practices being advantageous; they help to understand that organised HR-based competencies and institutional correspondence seem to be more strongly correlated with the carbon-cutting results than sustainability orientation in general.

THEORETICAL CONTRIBUTION

This study expands on three theoretical approaches, NRBV, Stakeholder Theory, and Institutional Theory, and reveals the interplay of internal capabilities with national policy frameworks in yielding a quantifiable carbon-reduction effect. NRBV conventionally concerns the competitive advantage created by environmentally oriented internal capabilities. This study shows that Green HRM as an internal strategic resource is not only positively associated with carbon reduction performance, but is also more effective in policy-conditioned mechanisms that the NRBV literature lacks. The Stakeholder Theory is extended by demonstrating that sustainability orientation in itself is not enough; the responsiveness of the organisation to environmental demands is only turned into concrete performance when it is systematically coordinated with institutional policy.

Institutional Theory is furthered by recognising perceived Vision 2030 alignment as a moderator to demonstrate the influential effect of coercive and normative pressures on the operational effects of HR and strategic sustainability practices. The synthesis of these perspectives enables this study to bridge a major gap: previous studies have analysed Green HRM, sustainability orientation, or policy alone, but there is little research on how internal environmental capabilities are used in the explicit contexts of decarbonisation at the national level. Overall, the contribution is that the efficacy of internal capabilities depends on policy alignment, which is a new mechanism by which national climate policy influences the mapping of organizational sustainability endeavours to concrete carbon-reduction impacts.