The Role of Green Intellectual Capital and Organizational Reputation in Influencing Environmental Performance

Abstract

The current study fills the gap of the literature by analyzing the contribution of intangible resources in affecting firm's environmental performance. In doing so, the authors aim to examine the contribution of organization's reputation in driving firm's environmental performance. Furthermore, the contribution of the current study is extended to study the crucial role of green intellectual capital in influencing sustainable performance. In this regard, the study measures intellectual capital in the form of green human capital, green social capital and green relational capital in realizing their impact on firm's environmental performance. Confronting the patterns of strict natural traditions and prominent ecological awareness, organizations ought not freeze or overcompensate from the existing ecological regulations as these natural patterns could be moved toward the green practice that may drive them to convey sustainable development and bring consensus in the environmental and organizational objectives. Unlike viewing ecological policies as hindrances of firm's future improvement, the findings of the current study concentrate on finding the right assessment of intangible resources in carrying efficiency in firm's course of sustainable practices by evaluating its impact on environmental performance. The results of PLS-SEM confirm that organizational reputation and green intellectual capital have positive and significantly influenced on environmental performance. The results of partial least square structural equation modelling confirm that a unit increase in green intellectual capital bring 0.449 unit increase in environmental performance of multinational firms in Indonesia. Moreover, a unit increase in organizational reputation also brings positive increase by 0.424 unit in environmental performance in Indonesia multinational firms.

Does green intellectual capital matter for green innovation adoption? Evidence from the manufacturing SMEs of Pakistan

“…Moreover, their study indicates that environmental consciousness enhances GIC in Taiwan's manufacturing firms. Other researchers as Yadiati et al (2019) analysed the impact of GIC and organisational reputation (OR) on firm environmental performance, focusing on multinational firms in Indonesia. Their findings reveal that GIC and OR significantly enhance the firm environmental performance.…”

“…In the era of environmental awareness, the concept of green intellectual capital (GIC) has been developed by academic circles for promoting corporate environmentalism (Chen, 2008a;Huang and Kung, 2011). GIC is proven to enhance a firm's environmental performance (Yadiati et al, 2019) and competitive advantage (Yusliza et al, 2020). Therefore, creating a green environment requires firms to have both physical capital and GIC.…”

Intellectual capital of European Union countries (EU-28) – measurement concept

“…The concept of the "green intellectual capital" or GIC addressed at the microeconomic level by Delgado-Verde et al [2014], Yadiati et al [2019] and Yusoff et al [2019] as well as that of "sustainable intellectual capital" described by Cavicchi and Vagnoni [2017] were an inspiration in specifying the notion of ecological capital within the structure of NIC. The natural environment and its state seem to be one of the most important challenges currently faced by governments and societies.…”

Green Intellectual Capital – A Comprehensive Review and Opportunities for Future Research

“…Considering the previous section, we can state that much more papers have examined the contribution of GIC in enhancing firms' environmental performance. As proof, we can cite the work of Khan et al, (2021) and Yadiati (2019) who claimed that investing in GIC will significantly assist firms in obtaining environmental outcomes. In the same vein, Song and Yu (2018) and Sidik et al, (2019) stressed that green performance is positively influenced by green intangibles.…”