Organizations around the globe have started to realize the importance of environmental sustainability to achieve long-term success. However, many organizations continue to use traditional production techniques, damaging the environment. To address this issue, this paper aimed to investigate the impact of green human resource management (GHRM) practices on green performance through the mediation of green work climate, green work engagement, and green employee behavior. The extent to which individual green values moderate the relationship between green work climate and green employee behavior was also examined. To meet the objectives, a cross-sectional quantitative study was conducted using simple random sampling, and the data were gathered using structured questionnaires from 390 employees of manufacturing SMEs in Pakistan. The findings of the study supported all the direct and indirect relationships and revealed that the incorporation of GHRM practices in SMEs has performance-enabling effects in terms of achieving green performance. By incorporating the impact of GHRM practices on green performance via mediation–moderation analysis of contemporary green variables in a single research model, the study expands the knowledge base, particularly in the context of SMEs. The study’s unique model and findings provide realistic insights for SMEs to come up with better strategies for greening the environment by ensuring green performance. The findings of the study also provide important implications for academia and practitioners.
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