Impact of Sustainable Human Resource Management Practices on Higher Education Institutional Performance: Examining the Mediating Role of Knowledge Management

Abstract

Higher education institutions (HEIs) increasingly operate in dynamic, competitive environments shaped by globalization, technological change, and greater accountability. In this context, Sustainable Human Resource Management (SHRM) has emerged as a strategic approach that aligns long-term human, organizational, and economic goals within HR practices. Grounded in the Ability–Motivation–Opportunity (AMO) theory, this study examines how HRM practices shape employee behavior regarding knowledge management and institutional outcomes. Using a quantitative, cross-sectional design, data were collected via structured questionnaires from 600 teaching and non-teaching staff in selected public universities across several districts. Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied to test direct and indirect relationships among variables. Findings show that sustainable HRM practices significantly and positively affect HEI performance. The study extends AMO theory to the higher education sector in a developing-country context by empirically validating how sustainable HRM practices and knowledge management collectively improve institutional performance. It highlights the need for Pakistani HEIs to move beyond traditional administrative models and adopt sustainable HRM to strengthen long-term effectiveness, competitiveness, and performance.