Building a Sustainable Work Culture through Sustainable HRM and Psychological Capital to Support Sustainable Performance among MSMEs in Medan

Tri Melda Mei Liana, Anita Tresia Samosir, Sunday Ade Sitorus, Hendrik Samosir

Abstract


This study examines the effects of sustainable human resource management (HRM) and psychological capital on sustainable performance, with sustainable work culture as a mediating variable, among micro, small, and medium enterprises (MSMEs) in Medan. The study uses a quantitative approach with a sample of 105 respondents and analyses the data using SmartPLS version 4.0. The results show that sustainable HRM significantly affects sustainable performance (t = 4.658 > 1.96; p = 0.000 < 0.05). Psychological capital has no significant effect on sustainable work culture (t = 1.546 < 1.96; p = 0.122 > 0.05) or sustainable performance (t = 0.898 < 1.96; p = 0.369 > 0.05). Sustainable HRM significantly affects sustainable work culture (t = 4.052 > 1.96; p = 0.000 < 0.05), but its effect on sustainable performance is not significant (t = 0.358 < 1.96; p = 0.720 > 0.05). The indirect effect of psychological capital on sustainable performance through sustainable work culture is not significant (t = 1.421 < 1.96; p = 0.155 > 0.05). The indirect effect of sustainable HRM through sustainable work culture is significant (t = 3.388 > 1.96; p = 0.001 < 0.05). These findings are expected to inform efforts by MSMEs in Medan to improve sustainable performance and work culture through sustainable HRM and psychological capital. They may also guide decisions on employee policies.


Keywords


Sustainable HRM, Psychological Capital, Sustainable Work Culture, Sustainable Performance

Full Text:

PDF

References


Aguinis, H. (2013). Performance Management (3rd ed.). Pearson. (Relevant to the concept of performance, which can be adapted to sustainable performance).

Aldaas R., Mohamed R., Ali M. H., Ismail N. A. (2022). Green supply chain management and SMEs environmental performance: green HRM practices as antecedent from service sector of emerging economy. International Journal of Emergency Services Vol. 11 No. 3, 2022 pp. 422-444.

Aloqaily A.N., Qawasmeh E.F., Masa'd F.M., Alrousan A., Ali M. (2024). The mediating effect of green culture on the relationship between GHRM and green sustainable performance in Jordanian SME logistics companies. International Journal of Advanced and Applied Sciences, Pages: 232-240.

Altassan M. A. (2023). Understanding the Role of Green Organization Culture and Innovation between Green HRM Practices and Environmental Performance of SMEs in Saudi Arabia. Pakistan Journal of Life and Social Sciences. pp. 698-715.

Azizah S.N., Evelyna F., (2024). The mediating role of HR practices to enhance the innovative capabilities of SMEs. Jurnal Mantik. pp 2902-2912.

Boiral, O., & Paillé, P. (2012). Service climate and the management of environmental practices: Exploration of mediating mechanisms. Journal of Business Administration Online, 13(1), 1-13. (Supporting source for environmental practices).

Boon, A. A., & Arumugam, V. (2006). The effect of Human Resource Management practices on organizational performance: A study on Malaysian firms. (Complete publication details are required for the journal or book). (Relevant when focusing on the effect of HRM on performance).

Boon, O. K., & Arumugam V. (2006). The Infulence of Corporate Culture on Organizational Commitment. Case Study of Semiconductor Organizations in Malaysia. Sunway Academic Journal, (3), 99-115.

Botelho, C. (2020). The influence of organizational culture and HRM on building innovative capability. International Journal of Productivity and Performance Management , 69 (7), 1373–1393.

Chen, S.-X., & Tang, Y. (2023). The impact of psychological capital on green and organizational performance: Empirical research measuring psychological and subjective health of green building industries. Frontiers in Public Health, 10, Article 1030028. https://doi.org/10.3389/fpubh.2022.1030028 PubMed

Chibulanotu W.Y (2023). Human Resource Management and Organizational Sustainability. International Academy Journal of Management Annals, 76-85.

Chibulanotu, A. (2023). Sustainable work culture and its impact on organizational performance. (Complete publication details are required for the journal or book). (General reference for sustainable work culture).

Dessler (2015). Human Resource Management for Competitive Business. Gajah Mada University Press.

Ehnert, I., Harry, W., & Zaugg, R. P. (Eds.). (2014). Theorizing and Measuring Sustainable HRM. Springer. (Important source for the general sustainable HRM framework).

Farida. (2023). Sustainable Human Resource Management Practices in Micro, Small, and Medium Enterprises. Economic Journal.

Ghozali(2021).SmartPLS Practical Guide.Ml,1–13 http://repository.umy.ac.id/bitstream/handle/123456789/2639/ModulPelatihan PLS.Bag.1.pdf?

Hasibuan (2017). Human Resource Management for Competitive Business. Gajah Mada University Press.

Jerónimo, H. M., de Lacerda, T. C., & Henriques, P. L. (2020). From sustainable HRM to employee performance: A complex and intertwined road. European Management Review, 17(4), 871–884. https://doi.org/10.1111/emre.12402 University of Lisbon

Kasmir (2016). Human Resource Management for Competitive Business. Gajah Mada University Press.

Kosiorek, D., & Szczepa?ska, K. (2016). Relationships between organizational culture and human resource management. Jagiellonian Journal of Management , 2 (Number 3), 205–215.

Kramar, R. (2014). Beyond strategic human resource management: Is sustainable human resource management the next approach? The International Journal of Human Resource Management, 25(8), 1069–1089. https://doi.org/10.1080/09585192.2013.816863 www.tandfonline.com

Kurniasih, D., Triatmanto, B., & Supriadi, B. (2026). Green organizational culture, job satisfaction, and work engagement in enhancing sustainable performance. Discover Sustainability, 7, Article 390. https://doi.org/10.1007/s43621-026-02690-3 Springer Nature Link

Kutaula, S., Chowdhury, S., Gillani, A., Budhwar, P. S., & Dey, P. K. (2025). Linking HRM with sustainability performance through sustainability practices: Unlocking the black box. British Journal of Management, 36(2), 615–632. https://doi.org/10.1111/1467-8551.12861 Kingston University London

Labelle F., Lamarche A.P., Koropogui S T., Chouchane R. (2025). The relationship between sustainable HRM practices and employees’ attraction: the influence of SME managers’values and intentions. Effectiveness: People and Performance Vol. 12 No. 1, 2025 pp. 127-144.

Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological Capital: Developing the Human Competitive Edge. Oxford University Press. (Primary source for PsyCap).

Mahfouz S.A., Halim M.S.A., Bahkia A.S., Alias N., Tambi A.M (2023) Sustainable human resource management practices in organizational performance: The mediating impacts impacts of knowledge management and work engagement. Journal of Entrepreneurship, Management and Innovation pp. 57-97. doi.org/10.7341/20231922.

Medan Office of Cooperatives and Small and Medium Enterprises. (2023). Data on MSMEs Supported by the Medan Municipal Government from 2017 to 2023. (Relevant contextual data source).

Medan Office of Cooperatives. (2023). MSME Data for Medan.

Mircetic et, al (2022). The Innovative Human Resource Management Framework: Impact of Green Competencies on Organisational Performance.Sustainability, 14,2713. https://doi.org/10.3390/su14052713.

Newman, A., Ucbasaran, D., Zhu, F., & Hirst, G. (2014). Psychological capital: A review and synthesis. Journal of Organizational Behavior, 35(S1), S120–S138. https://doi.org/10.1002/job.1916

Renwick, D. W. S., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda. Asia Pacific Journal of Human Resources, 51(2), 184-203. (Primary source for sustainable HRM, particularly its environmental aspects).

Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior (17th ed.). Pearson. (General source on organisational behaviour concepts relevant to work culture and performance).

Subramanian N., Suresh M., (2022). Social Sustainability Factors Influencing the Implementation of Sustainable HRM in Manufacturing SMEs Analysis of Social Sustainability Indicators of Sustainable HRM: A TISM and MICMAC Approach. Humanistic Management Journal 7:469–507. https://doi.org/10.1007/s41463-022-00139-z

Sugiyono. (2019). Educational Research Methods Quantitative Qualitative and R&D Approaches. Bandung: Alfabeta.

Wright, P. and McMahan, G. (2011) Exploring Human Capital: Putting “Human” Back into Strategic Human Resource Management. Human Resource Management Journal, 21, 93-104. https://doi.org/10.1111/j.1748-8583.2010.00165.x

Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: Theory, measurement, and future research. Academy of Management Perspectives, 25(2), 48-61. (Still relevant to the concept of human capital).




DOI: https://doi.org/10.32535/ijabim.v11i1.4477

Refbacks

  • There are currently no refbacks.




Copyright (c) 2026 Tri Melda Mei Liana, Anita Tresia Samosir, Sunday Ade C.O.M. Sitorus, Hendrik E.S Samosir

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

International Journal of Applied Business and International Management (IJABIM)

ISSN 2614-7432 (Print) | ISSN 2621-2862 (Online)

DOI Prefix: 10.32535 by CrossRef

Published by AIBPM Publisher

JL. Kawi No. 23, Bareng, Kec. Klojen, Kota Malang, Jawa Timur, Indonesia

Email: journal.ijabim@gmail.com

Phone: +62 341 366222

Website: https://aibpmpublisher.com/

Governed by

Association of International Business and Professional Management

Email: admin@aibpm.org

Website: https://www.aibpm.org/

Indexed by

SINTA Garuda Google Scholar Dimensions ASEAN Citation Index

Visitor Statistics

Flag Counter

Web Analytics

View IJABIM Stats

Follow Us: