Unraveling the Black Box: The Nexus between Sustainable HR Management Practices and Sustainable Performance

In solving the triple-bottom-line concept of sustainability, which encompasses the concerns of the modern world, corporations are increasingly incorporating principles of sustainability into their strategies; yet, this presents challenges for the manufacturing industry with limited resources. Despite the increasing academic acknowledgment of SHRM, the impact of SHRMP on an organization's sustainability performance has not been well investigated. Based on signaling theory, we examine the impact of SHRM on the sustainability performance of the organization. Analysis of survey data from 287 workers in the industrial sector indicated that sustainable practices substantially mediate the relationship between SHRMP, managerial competence, and sustainable performance. We analyze the contributions to theory and practice and delineate prospective research areas.