Abstract:

This study focuses on the importance of MSMEs to apply Green HRM in increasing Islamic Spiritual Value that is expected to be able to have an impact on the increase of business sustainability (business, environmental, and social performance). The population of this study is all MSMEs in Klaten Regency, Central Java, who has the strategic orientation of synthetic and natural dyes (environmental orientation). There are 207 respondents who return the questionnaire from the target samples of 250 MSMEs member in Klaten, Central Java, especially in Bayat Sub-District. The statistic technique used in this study is AMOS 23. The results of this study show that: (1) Green HRM is able to increase Islamic Spiritual Value; (2) Islamic Spiritual Value is able to increase Business Sustainability (Business Performance, Environmental Performance, and Social Performance).