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ABSTRACT This study examines the effect of green human resource management practices on organizational sustainable development, while analyzing the mediating role of the circular economy and the moderating effect of green organizational culture within this mediated relationship based on resource‐based view. Data were gathered from a sample of 326 banking sector employees using convenience sampling, and the presented hypotheses were evaluated using partial least squares structural equation modeling (PLS‐SEM). The findings indicate that green human resource management methods have a considerable and positive impact on both organizational sustainable development and the circular economy. Moreover, the circular economy was identified as a mediator in the interaction between green human resource management practices and organizational sustainable development, underscoring its essential function as a facilitator of sustainable transformation. This mediated association was further reinforced by green organizational culture, underscoring the significance of environmentally conscious attitudes in augmenting the efficacy of green human resource management practices. This study provides a novel viewpoint on the interplay between intangible organizational resources and cultural dynamics in promoting sustainability by incorporating the circular economy and green organizational culture, thereby enhancing the resource‐based view framework. The findings enhance the theoretical framework of resource‐based view literature and provide practical guidance for managers seeking to integrate sustainability into human resource practices.
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