This study examines the adoption and institutionalization of Green Human Resource Management (Green HRM) in Malaysian SMEs, focusing on the influence of Perceived Organizational Green Readiness (POG) and Perceived External Green Readiness (PEG) on the institutionalization of Green HRM (ING). Utilizing structural equation modeling from a sample of 425 respondents for Malaysian SMEs, the research reveals that POG and PEG significantly predict the Initial adoption of Green HRM (IAG), which mediates their impact on ING. This study also identifies a moderating role of corporate social responsibility (CSR) in the relationship between IAG and ING. Theoretical contributions extend stakeholder theory, the E-Commerce Adoption Model, the Organizational Readiness to Change (ORC) framework, and CSR theory to the Green HRM context. The findings provide practical insights for SMEs on aligning Green HRM with organizational strategies and external factors for effective institutionalization. This research contributes to the understanding of Green HRM processes, emphasizing the importance of initial adoption and the intricate role of CSR in sustainable business practices.
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