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Purpose Drawing on the componential theory of creativity, the purpose of this study is to introduce the concept of innovative green human resource management (IGHRM) and how GHRM and green innovation (GI) integrate and foster IGHRM, affecting the psychological green climate (PGC), green in-role (GIB) and extra-role (GEB) behaviors and green creativity (GC) to implement carbon credit success in the textile manufacturing small and medium-sized enterprises. Design/methodology/approach Using a quantitative survey with multi-stage sampling (n = 412), top-level employees were targeted. SPSS, WarpPLS and Smart PLS 4 with first- and second-order models were used to handle the data analysis. Findings The results of this study showed that GHRM significantly influenced PGC. GI failed to increase positive PGC because of the lack of GHRM. Resultantly, IGHRM significantly influenced PGC to foster carbon credit success. Additionally, PGC significantly influences GIB and GEB but not GC directly. In turn, GIB and GEB significantly influenced GC. GI moderates the relationship only if there are GHRM practices (i.e. compensation and rewards, employment involvement, performance and management, recruitment and selection and training and development). When GI is high but GHRM practices are not innovative, PGC remains relatively stagnant or even declines. Originality/value This is the unique research to introduce and empirically validate the concept of IGHRM to make carbon credit hours successful in Pakistani textile sector. This study investigates the integration of GHRM and GI to foster a PGC, thereby influencing green behaviors and creativity for carbon credit success.
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