Role of green intellectual capital and company size on business sustainability

Abstract

This study aims to test and analyze the influence of green intellectual capital and company size on business sustainability. The selection of samples was conducted by purposive sampling under the objectives of this study, namely mining companies registered in IDX from 2017-2020. The findings of this study show that green human capital and green structural capital have a significant effect on business sustainability, while green relational capital does not affect business sustainability. In addition, company size has a positive impact on business sustainability. By examining the factors that affect sustainability, this study paves the way for further investigation of this topic with a set of micro and macro variables. This research provides insight into the disclosure of green intellectual capital to business sustainability. The GIC research in Indonesia has been claimed that it has not been widely researched. Accordingly, this research seems to be preliminary. This research also considers the current context of the era of agility and hybrid cloud and the increasing competition in the advanced industry. The company is likely to try to find a strategy to maintain the sustainability of its business.

Pengaruh Carbon Emission Disclosure, Carbon Performance, Dan Green Intellecetual Capital Terhadap Kinerja Perusahaan

“…Hal tersebut akan meningkatkan kinerja keuangan perusahaan. Adapun hasil penelitian ini selaras dengan penelitian yang telah dilakukan oleh Dewi (2021), Setyawan (2022), serta Chandra & Agustine (2019).…”

“…Untuk meningkatkan kesadaran akan lingkungan pada setiap elemen perusahaan diperlukan strategi yang tepat dan menyeluruh, salah satunya adalah dengan melakukan pengelolaan green intellectual capital/modal intelektual hijau. Sebagaimana disebutkan oleh Setyawan & Juanda (2022) bahwa perusahaan yang dapat melakukan pengelolaan green intellectual capital dengan baik, memiliki keunggulan produk dan layanan yang ramah lingkungan dibandingkan dengan kompetitornya. Keterkaitan antara kinerja lingkungan dan kinerja keuangan berperan penting dalam internalisasi tanggung jawab lingkungan perusahaan.…”

Why Green IC does not Influence Firm Value?

“…Green intellectual capital can be broken down into green human, structural, and relational capital. The company's human capital is crucial to its long-term success (Setyawan et al, 2022). A company's "green human capital" consists of its employees' intangible skills and knowledge in environmental management and green innovation.…”

“…They may use this information to practice corporate responsibility for the environment, abide by environmental regulations, spread the word about the importance of environmental protection, and perhaps even grow their company in the future. The management, disclosure, and reporting of green intellectual capital are still optional for companies, even though it is possible that doing so might speed the development of resources that impact corporate sustainability (Setyawan et al, 2022). Three categories are defined for green intellectual capital.…”

“…Yusoff et al (2019) found that green structural and relational capital improved corporate sustainability, but green human capital had no effect. Green structural and human capital improved a company's sustainability, but green relational capital did not, according to Setyawan et al (2022). Lastanti and Augustine (2022) argue that green relational capital and green human capital increase firm value, while green structural capital and green intellectual capital do not affect firm value.…”