Danubius International Conferences, International Conference Circular Economy: Opportunities and Challenges 2022

Role of Green Intellectual Capital in Improving Corporate Environmental Performance: Does Green Innovation Matter?

Abu Bakkar Siddik, Li Yong, Alina Cristina Nuta
Last modified: 2022-11-17


In the era of environmental consciousness, scholars in the field have established the notion of green intellectual capital (GIC) to promote corporate environmentalism. Recent studies have emphasized the significance of GIC in preventing environmental degradation. However, only a few of studies have examined green intellectual capital and its effects in Bangladesh. This study examined the link between green intellectual capital (GIC) and environmental performance (ENP) through the mediating influence of green innovation (GI). Cross-sectional data were obtained from 266 manufacturing firms’ managers in Bangladesh. This study employed PLS-SEM analysis to assess the hypotheses using the SmartPLS 4.0 software. The results demonstrated that three dimensions of GIC (green human capital, green social capital, and green relational capital) have a significant impact on the company's ENP. Moreover, our results suggest that GI successfully mediates the relationship between GIC dimensions and enterprises’ ENP. This study contributes to the body of knowledge by establishing three dimensions of GIC as ENP's antecedents and GI as an intervening variable. In addition, our study expands the ICV theory's application within the setting of an emerging economy. Our findings and proposed policy measures are crucial for executives of manufacturing organizations and policymakers who seek to prevent environmental deterioration and achieve sustainable growth by leveraging green intellectual capital.