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Purpose The increasing pressure on businesses to achieve green sustainability while maintaining operational efficiency has resulted in the emergence of green human resource management (GHRM) as a key tool. Nevertheless, insufficient empirical data exist on how GHRM improves lean operations, specifically through digital transformation. This study aims to examine the impact of GHRM on lean operations, with the aid of digital green transformation (DGT) as a mediating factor, drawing on the dynamic capabilities theory (DCT) as its conceptual foundation. Design/methodology/approach A quantitative research method was used, and data were gathered from 321 respondents across the SMEs in Pakistan, utilizing a structured questionnaire. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the hypothesized relationships developed in this study. Findings The results revealed that the GHRM has a significant effect on both the lean operations and the DGT. Additionally, the DGT increases the lean processes, and it mediates the link between the GHRM and lean operations. The results of this study describe that the GHRM not only enhances environmental ethics but also acts as a driver for technological evolution, which promotes operational efficiency. Practical implications SMEs should integrate environmental and sustainable HR activities with the information technology tools to develop flexible and streamlined operational frameworks. Originality/value This study contributes to the literature by proposing the DGT as a novel mediator and by framing the research concerning the developing economies, providing implications for academics and practice.
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