ABSTRACT
Drawing on the social exchange theory (SET) and the self-determination theory (SDT), the present study aims to examine the impact of green human resource management (GHRM) practices on organizational innovation, employee creativity, and career development competency in the SME context in Cambodia. GHRM is crucial in fostering innovation within Cambodia’s small and medium-sized enterprises (SMEs). The country’s economy continues to develop and diversify, and SMEs are becoming increasingly important drivers of growth and innovation. Integration effectiveness of GHRM practices and strategies in an SME context may increase an employee’s capacity for innovation, thereby contributing to Cambodia’s overall economic development. Furthermore, aligning GHRM with the overall business strategy is paramount for driving innovation in SMEs. GHRM should be closely integrated with the organization’s innovation goals, ensuring that recruitment, performance management, and reward systems are all designed to support and incentivize innovative thinking and behavior. To reach this study’s research objectives, 388 SMEs were asked to rate the questionnaire survey. By employing structural equation modeling (SEM), the study finds positive and significant effects of the sub- dimension of GHRM practice—i.e., green job design (GJD), green recruitment & selection (GRS), green labor relation (GLR), green training & development (GTD), and green compensation management (GCM) on organizational innovation, employee creativity, and employee career competencies. Indeed, effective HRM practices are vital for driving innovation within SMEs in Cambodia. SMEs invest in talent management, fostering a positive work environment, and aligning GHRM with innovation goals to increase high business performance in Cambodia’s economy.