The Inclusion of Intellectual Capital into the Green Board Committee to Enhance Firm Performance

Abstract

The purpose of this study was to conceptualise a framework that reflects an intertwined relationship between the green board committee and firm performance. Agency and stakeholder theories hold a basic notion of supporting the relationship between the green board committee and firm performance. The moderating role of intellectual capital (IC) was introduced in the intertwined relationship between green board committees and firm performance based on a resource-based view theory. This study proposes a new measurement index, namely, the “green board committee index”, to measure the green practices of organisations. This index is comprised of four dimensions: strategy and policymaking, monitoring and control, sustainability, and risk management. The current study hypothesised a significant and positive relationship between the green board committee and firm performance. It was believed that the moderation effect of IC strengthens the relationship between the green board committee and firm performance. The data for this study were proposed to be measured through a content analysis of the company’s annual and embedded reports and a Thomson Reuters DataStream terminal. It adds to the body of knowledge by alluding to an integrated notion of green board committees and IC concerning firm performance. The mentioned conceptual framework sends signals to legislators, regulators, policymakers, and practitioners on the critical insights and actions of green board committees in setting strategies and objectives, addressing sustainability issues, forging a relationship with stakeholders, and increasing the firm’s value from the business operations.

Hope-hype of green innovation, corporate governance index, and impact on firm financial performance: a comparative study of Southeast Asian countries

“…Furthermore, the board of directors must devote significant attention to developing green governance that enables green innovation methods (Shah et al , 2021. However, the authors would like to draw attention to women's participation at managerial and board levels which was found to be lower than that in Malaysian (Lim et al 2019;Guizani and Abdalkrim 2022) and Indonesian (Nainggolan et al 2022) corporate governance code.…”

Vinculum of Green Innovation, Corporate Governance Index, and Impact on Financial Firm Performance: A Comparative Study of Two Southeast Asian Countries

“…al., 2022;Shah et al, 2021). However, the author would like to draw attention to women's participation at managerial and board levels was found to be lower than in Malaysian(Guizani & Abdalkrim, 2022;Lim et al, 2019) and Indonesian(Nainggolan et al, 2022) corporate governance code.Thereby boosting the business's triple bottom line and allowing the rm to relate to the market and investors(Lai et al, 2021).…”

What are the Drivers of Competitive Advantage Coming from Green Intellectual Capital During 2022 Global Economic Crisis?

“…The global economy is currently facing a significant crisis due to the COVID- 19 Recent research has shown that organizations with a strong commitment to green intellectual capital have been able to weather the economic downturn caused by the pandemic better than those without such commitment (Rodrigues et al, 2017). This is because green intellectual capital can lead to cost savings, such as through energy efficiency, and can also increase revenue through the development of new green products and services (Shah et al, 2021). Additionally, organizations with green intellectual capital are more likely to have a positive reputation, which can attract customers and investors (Li et al, 2020).…”

“…However, while green intellectual capital can provide a competitive advantage in times of economic crisis, it can also be a significant investment. Organizations must invest in the development and training of their workforce in order to build green intellectual capital (Shah et al, 2021). Furthermore, organizations must also implement environmentally sustainable business practices, which can also be costly (Li et al, 2020).…”

“…The crisis has highlighted the need for a more resilient and sustainable economy(Boubaker et al, 2022;Nemlioglu & Mallick, 2021), which can be achieved through the development of green intellectual capital. Green intellectual capital refers to the knowledge, skills, and abilities of an organization's workforce that are dedicated to promoting environmentally sustainable business practices(Shah et al, 2021) Petković (2022). qualitatively explored the link between green intellectual capital and competitive advantage of biggest US banks during Covid-19 crisis.…”