Impact of Green Intellectual Capital On Sustainable Performance
Impact of Green Intellectual Capital On Sustainable Performance
Impact of Green Intellectual Capital On Sustainable Performance
PERFORMANCE
INTRODUCTION:
In recent years, there has been increasing emphasis on the importance of sustainability in
business practices. One characteristic of sustainability that has gained attention is the concept of
green intellectual capital, which refers to a firm's knowledge, skills, and abilities related to
environmental sustainability. This type of capital includes environmental patents, certifications,
employee capability, and green improvement. The aim of this study is to examine the impact of
on sustainable financial performance. While previous research has established a positive
relationship between sustainability and financial performance, there is limited research on the
role of in this relationship. Therefore, this study finds to fill this gap by exploring the extent to
which affects a firm's sustainable financial performance. By performance so, it can provide
valued understandings for firms looking to improve their environmental sustainability performs
while also maintaining financial stability.
Growing environmental and social issues have recently involved significant and complete
attention from investors and stakeholders worldwide due to growing sustainability concerns.
Growing environmental and social challenges have extremely disappearing corporate
sustainability (7) (Jann, A.A. et al., 2021). Stake holder entrance organizations were established to
increase awareness of the importance of society and the environment. In response to
sustainability issues, companies must adopt green practices to improve their sustainability
performance toward subcommittees. The company's sustainability efforts should be connected to
shareholders, employees, customers (8) (Tang, M.et al., 2018). The green board committee is
responsible for administration the environmental sustainability of the firm's operations.
Intellectual capital refers to the concrete properties such as knowledge, skills, and innovation,
which are crucial for a firm's success (9) (Lios, L. et al., 2016).
In the past, firms viewed nature as a free and unlimited product. This attitude led to the "Disaster
of the Commons" in, in which individuals and corporations believed that the use of the commons
had only slight environmental impacts (10) (Shaw et al., 2016). The result was pollution and
resource depletion. As the number of reported environmental issues increases, companies must
meet their responsibilities to nature and the environment. These phenomena have introduced the
concept of sustainable use, in which the economic results of the company are no longer
considered the only objective to be achieved, since great importance has been attached to the
achievement of social and environmental goals (11) (Pedersen, E. R. G, 2018). Consistent with
cleaner manufacturing practices, recent research has shown that the sustainable performance of s
has received increased attention, with research increasingly focusing on the relationship between
s and green workforce management. Green management and sustainable manufacturing practices
(12) (Abdul-Rashid et al., 2017). Found that using a methodology to organize cleaner production
can reduce environmental impacts. In addition to these organizational practices, confirmed that
green intellectual capital has contributed to the sustainable business development of in small and
medium-sized manufacturing enterprises. Study agreed with the previous study by, and
confirmed that intellectual capital drives sustainable development (13) Yusoff et al. (2019) .