In an era of rapid globalization and increased environmental consciousness, organizations must align their business practices with sustainable development goals. The main objective of this study is to explore the impact of sustainable human resource management (SHRM) on employees’ performance, focusing on the mediating role of employee engagement and the moderating effect of national culture. To do so, data were collected from 1950 individuals across 26 countries. The results of a multilevel analysis show that SHRM positively affects performance, with employee engagement acting as a mediator. Furthermore, the effectiveness of SHRM practices is moderated by cultural tightness–looseness, indicating that SHRM practices are more effective in flexible and adaptive cultural environments. This study contributes to the literature by integrating institutional theory and the JD-R model, demonstrating that SHRM enhances performance through increased employee engagement and that cultural context significantly influences this relationship. The findings emphasize the need for a culturally sensitive approach to SHRM, suggesting that organizations should tailor their sustainable practices to align with the cultural norms of their operational environments. This research provides valuable theoretical insights into the mechanisms through which SHRM impacts performance and practical implications for HR professionals seeking to implement effective and sustainable HR practices globally.
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