A Conceptual Paper on the Effects of Green Intellectual Capital on Business Sustainability
Keywords:
Business sustainability; Green intellectual capital; Green Human Capital; Green Structural Capital; Green Relational Capital
Abstract
Businesses today are placing greater emphasis on sustainability and environmental concerns. More and more firms are making sustainability their top priority to stay ahead of their competitors. Since we now operate in a knowledge-based economy, intangible assets have emerged as an essential measure for evaluating a company's competitive advantage. Academics developed the notion of green intellectual capital (GIC) to encourage firms to care more about their environmental impact. In this conceptual paper, we aim to investigate the relationship between Green Intellectual Capital and the sustainability of a business. The goal of this study was to present a literature review on the impact of Green Human Capital (GHC), Green Structural Capital (GSC), and Green Relational Capital (GRC) on business sustainability. Despite the growing importance of GIC research in developing countries, scholars have devoted little attention to the subject, particularly in the Malaysian context. The findings indicate that all three concepts of Green Intellectual capital positively influence the sustainability performance of businesses.
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References
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Chang, C. H. & Chen, Y. S. (2012). The determinants of green intellectual capital. Management Decision, 50(1), 74–94. https://doi.org/10.1108/00251741211194886
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Chen, Y. S. (2011). Green organizational identity: sources and consequence. Management decision, 49(3), 384-404.
Chen, Y. S. (2008). The positive effect of green intellectual capital on competitive advantages of firms. Journal of Business Ethics, 77(3), 271–286. https://doi.org/10.1007/s10551-006-9349-1
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Jadoon, I. A., Ali, A., Ayub, U., Tahir, M. & Mumtaz, R. (2021). The impact of sustainability reporting quality on the value relevance of corporate sustainability performance. Sustainable Development, 29(1), 155–175. https://doi.org/10.1002/sd.2138
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Jirakraisiri, J., Badir, Y. F. & Frank, B. (2021). Translating green strategic intent into green process innovation performance: the role of green intellectual capital. Journal of Intellectual Capital, 22(7), 43–67. https://doi.org/10.1108/JIC-08-2020-0277
Mansoor, A., Jahan, S. & Riaz, M. (2021). Does green intellectual capital spur corporate environmental performance through a green workforce? Journal of Intellectual Capital, 22(5), 823–839. https://doi.org/10.1108/JIC-06-2020-0181
Nejati, M., Rabiei, S. & Chiappetta Jabbour, C. J. (2017). Envisioning the invisible: Understanding the synergy between green human resource management and green supply chain management in manufacturing firms in Iran in light of the moderating effect of employees’ resistance to change. Journal of Cleaner Production, 168, 163–172. https://doi.org/10.1016/j.jclepro.2017.08.213
Obeng, B. A. (2019). Strategic networking and small firm growth in an emerging economy. Journal of Small Business and Enterprise Development, 26(1), 43–66. https://doi.org/10.1108/JSBED-01-2018-0035
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Ray, A. D. & Grannis, J. (2015). From Planning to Action: Implementation of State Climate Change Adaptation Plans. Michigan Journal of Sustainability, 3(20181221). https://doi.org/10.3998/mjs.12333712.0003.001
Russo, M. V. & Fouts, P. A. (1997). A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal, 40(3), 534–559. https://doi.org/10.2307/257052
Sadiq, M., Adil, M. & Paul, J. (2022). Eco-friendly hotel stay and environmental attitude: A value-attitude-behavior perspective. International Journal of Hospitality Management, 100, 103094.
Shah, S. M. M., Ahmed, U., Ismail, A. I. & Mozammel, S. (2021). Going intellectually green: Exploring the nexus between green intellectual capital, environmental responsibility, and environmental concern towards environmental performance. Sustainability (Switzerland), 13(11). https://doi.org/10.3390/su13116257
Sheikh, A. M. (2021). Green intellectual capital and social innovation: the nexus. Journal of Intellectual Capital, 23(6), 1199–1220. https://doi.org/10.1108/JIC-11-2020-0361
Suki, N. M., Suki, N. M., Sharif, A., Afshan, S. & Rexhepi, G. (2022). Importance of green innovation for business sustainability: Identifying the key role of green intellectual capital and green SCM. Business Strategy and the Environment, (September). https://doi.org/10.1002/bse.3204
Ullah, H., Wang, Z., Bashir, S., Khan, A. R., Riaz, M. & Syed, N. (2021). Nexus between IT capability and green intellectual capital on sustainable businesses: evidence from emerging economies. Environmental Science and Pollution Research, 28(22), 27825–27843. https://doi.org/10.1007/s11356-020-12245-2
Wang, C. H. & Juo, W. J. (2021). An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability. Business Strategy and the Environment, 30(7), 3241–3254. https://doi.org/10.1002/bse.2800
Wang, J. (2022). Building competitive advantage for hospitality companies: The roles of green innovation strategic orientation and green intellectual capital. International Journal of Hospitality Management, 102, 103161.
Welbourne, T. M. & Pardo-del-Val, M. (2009). Relational capital: strategic advantage for small and medium-sized enterprises (SMEs) through negotiation and collaboration. Group Decision and Negotiation, 18, 483-497.
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Yadiati, W., Nissa, Paulus, S., Suharman, H. & Meiryani. (2019). The role of green intellectual capital and organizational reputation in influencing environmental performance. International Journal of Energy Economics and Policy, 9(3), 261–268. https://doi.org/10.32479/ijeep.7752
Yong, J. Y., Yusliza, M. Y., Ramayah, T., Farooq, K. & Tanveer, M. I. (2022). Accentuating the interconnection between green intellectual capital, green human resource management and sustainability. Benchmarking. https://doi.org/10.1108/BIJ-11-2021-0641
Yong, J. Y., Yusliza, M. Y., Ramayah, T. & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364–374. https://doi.org/10.1016/j.jclepro.2018.12.306
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J. & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, 119334. https://doi.org/10.1016/j.jclepro.2019.119334
Yusoff, Y. M., Omar, M. K. & Kamarul Zaman, M. D. (2019). Practice of green intellectual capital. Evidence from the Malaysian manufacturing sector. IOP Conference Series: Materials Science and Engineering, 469(1). https://doi.org/10.1088/1757-899X/469/1/012008
Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D. & Samad, S. (2019a). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153
Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D. & Samad, S. (2019b). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153
Ahmad Yahya, N., Arshad, R., Kamaluddin, A. & Wan Abdullah, W. R. (2022). Proposed Model of Green Intellectual Capital in the Manufacturing Sector: A Developing Country Perspective. International Journal of Academic Research in Business and Social Sciences, 12(12), 892–901. https://doi.org/10.6007/ijarbss/v12-i12/15113
Ali, W., Wen, J., Hussain, H., Khan, N. A., Younas, M. W. & Jamil, I. (2021). Does green intellectual capital matter for green innovation adoption? Evidence from the manufacturing SMEs of Pakistan. Journal of Intellectual Capital, 22(5), 868–888. https://doi.org/10.1108/JIC-06-2020-0204
Allameh, S. M. & Abbas, S. K. (2011). The Relationship Between Knowledge Management Practices And Innovation Level In Organizations: Case Study Of Sub-Companies Of Selected Corporations In The City Of Esfahan. Journal of Business Case Studies (JBCS), 6(1), 89–98. https://doi.org/10.19030/jbcs.v6i1.861
Alvino, F., Di Vaio, A., Hassan, R. & Palladino, R. (2021, February 17). Intellectual capital and sustainable development: a systematic literature review. Journal of Intellectual Capital, 22, 76–94. https://doi.org/10.1108/JIC-11-2019-0259
Amores-Salvadó, J., Cruz-González, J., Delgado-Verde, M. & González-Masip, J. (2021). Green technological distance and environmental strategies: the moderating role of green structural capital. Journal of Intellectual Capital, 22(5), 938–963. https://doi.org/10.1108/JIC-06-2020-0217
Astuti, P. D. & Datrini, L. K. (2021). Green competitive advantage: Examining the role of environmental consciousness and green intellectual capital. Management Science Letters, (January), 1141–1152. https://doi.org/10.5267/j.msl.2020.11.025
Baycan, T. & Öner, Ö. (2022). The dark side of social capital: a contextual perspective. Annals of Regional Science. https://doi.org/10.1007/s00168-022-01112-2
Benevene, P., Buonomo, I., Kong, E., Pansini, M. & Farnese, M. L. (2021). Management of green intellectual capital: Evidence-based literature review and future directions. Sustainability (Switzerland), 13(15), 1–22. https://doi.org/10.3390/su13158349
Boso, R. K., Adusei, E. & Demah, E. (2022). How does green intellectual capital affect environmental performance? Evidence from manufacturing firms in Ghana. Social Responsibility Journal. https://doi.org/10.1108/SRJ-12-2021-0503
Chang, C. H. & Chen, Y. S. (2012). The determinants of green intellectual capital. Management Decision, 50(1), 74–94. https://doi.org/10.1108/00251741211194886
Chaudhary, R. & Kumar, C. (2021). Innovations and eco-sustainability: exploring the role of the organizational environment. Social Responsibility Journal. https://doi.org/10.1108/SRJ-12-2020-0497
Chen, Y. S. (2011). Green organizational identity: sources and consequence. Management decision, 49(3), 384-404.
Chen, Y. S. (2008). The positive effect of green intellectual capital on competitive advantages of firms. Journal of Business Ethics, 77(3), 271–286. https://doi.org/10.1007/s10551-006-9349-1
Commer, P. J., Sci, S., Chaudhry, N. I. & Chaudhry, M. A. (n.d.). Green Intellectual Capital and Corporate Economic Sustainability: The Mediating Role of Financial Condition. In Pakistan Journal of Commerce and Social Sciences (Vol. 2022).
Firmansyah, A. (2017). 215-Article Text-978-1-10-20180226. 1, 183–219.
Galpin, T., Whittington, J. L. & Bell, G. (2015). Is your sustainability strategy sustainable? Creating a culture of sustainability. Corporate Governance (Bingley), 15(1), 1–17. https://doi.org/10.1108/CG-01-2013-0004
Hart, S. (1995). A Natural-Reouces-Based View of the Firm. Academy of Management Review, 51(3), 49–51.
Huang, C. L. & Kung, F. H. (2011). Environmental consciousness and intellectual capital management: Evidence from Taiwan’s manufacturing industry. Management Decision, 49(9), 1405–1425. https://doi.org/10.1108/00251741111173916
Jadoon, I. A., Ali, A., Ayub, U., Tahir, M. & Mumtaz, R. (2021). The impact of sustainability reporting quality on the value relevance of corporate sustainability performance. Sustainable Development, 29(1), 155–175. https://doi.org/10.1002/sd.2138
Jiao, X., Zhang, P., He, L. & Li, Z. (2022). Business sustainability for competitive advantage: identifying the role of green intellectual capital, environmental management accounting and energy efficiency. Economic Research-Ekonomska Istrazivanja . https://doi.org/10.1080/1331677X.2022.2125035
Jirakraisiri, J., Badir, Y. F. & Frank, B. (2021). Translating green strategic intent into green process innovation performance: the role of green intellectual capital. Journal of Intellectual Capital, 22(7), 43–67. https://doi.org/10.1108/JIC-08-2020-0277
Mansoor, A., Jahan, S. & Riaz, M. (2021). Does green intellectual capital spur corporate environmental performance through a green workforce? Journal of Intellectual Capital, 22(5), 823–839. https://doi.org/10.1108/JIC-06-2020-0181
Nejati, M., Rabiei, S. & Chiappetta Jabbour, C. J. (2017). Envisioning the invisible: Understanding the synergy between green human resource management and green supply chain management in manufacturing firms in Iran in light of the moderating effect of employees’ resistance to change. Journal of Cleaner Production, 168, 163–172. https://doi.org/10.1016/j.jclepro.2017.08.213
Obeng, B. A. (2019). Strategic networking and small firm growth in an emerging economy. Journal of Small Business and Enterprise Development, 26(1), 43–66. https://doi.org/10.1108/JSBED-01-2018-0035
Pellegrini, C., Rizzi, F. & Frey, M. (2018). The role of sustainable human resource practices in influencing employee behavior for corporate sustainability. Business Strategy and the Environment, 27(8), 1221–1232. https://doi.org/10.1002/bse.2064
Ray, A. D. & Grannis, J. (2015). From Planning to Action: Implementation of State Climate Change Adaptation Plans. Michigan Journal of Sustainability, 3(20181221). https://doi.org/10.3998/mjs.12333712.0003.001
Russo, M. V. & Fouts, P. A. (1997). A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal, 40(3), 534–559. https://doi.org/10.2307/257052
Sadiq, M., Adil, M. & Paul, J. (2022). Eco-friendly hotel stay and environmental attitude: A value-attitude-behavior perspective. International Journal of Hospitality Management, 100, 103094.
Shah, S. M. M., Ahmed, U., Ismail, A. I. & Mozammel, S. (2021). Going intellectually green: Exploring the nexus between green intellectual capital, environmental responsibility, and environmental concern towards environmental performance. Sustainability (Switzerland), 13(11). https://doi.org/10.3390/su13116257
Sheikh, A. M. (2021). Green intellectual capital and social innovation: the nexus. Journal of Intellectual Capital, 23(6), 1199–1220. https://doi.org/10.1108/JIC-11-2020-0361
Suki, N. M., Suki, N. M., Sharif, A., Afshan, S. & Rexhepi, G. (2022). Importance of green innovation for business sustainability: Identifying the key role of green intellectual capital and green SCM. Business Strategy and the Environment, (September). https://doi.org/10.1002/bse.3204
Ullah, H., Wang, Z., Bashir, S., Khan, A. R., Riaz, M. & Syed, N. (2021). Nexus between IT capability and green intellectual capital on sustainable businesses: evidence from emerging economies. Environmental Science and Pollution Research, 28(22), 27825–27843. https://doi.org/10.1007/s11356-020-12245-2
Wang, C. H. & Juo, W. J. (2021). An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability. Business Strategy and the Environment, 30(7), 3241–3254. https://doi.org/10.1002/bse.2800
Wang, J. (2022). Building competitive advantage for hospitality companies: The roles of green innovation strategic orientation and green intellectual capital. International Journal of Hospitality Management, 102, 103161.
Welbourne, T. M. & Pardo-del-Val, M. (2009). Relational capital: strategic advantage for small and medium-sized enterprises (SMEs) through negotiation and collaboration. Group Decision and Negotiation, 18, 483-497.
World Commission on Environment and Development. (1987). Report of the World Commission on Environment and Development: Our Common Future (The Brundtland Report). Medicine, Conflict and Survival, 4. https://doi.org/10.1080/07488008808408783
Yadiati, W., Nissa, Paulus, S., Suharman, H. & Meiryani. (2019). The role of green intellectual capital and organizational reputation in influencing environmental performance. International Journal of Energy Economics and Policy, 9(3), 261–268. https://doi.org/10.32479/ijeep.7752
Yong, J. Y., Yusliza, M. Y., Ramayah, T., Farooq, K. & Tanveer, M. I. (2022). Accentuating the interconnection between green intellectual capital, green human resource management and sustainability. Benchmarking. https://doi.org/10.1108/BIJ-11-2021-0641
Yong, J. Y., Yusliza, M. Y., Ramayah, T. & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364–374. https://doi.org/10.1016/j.jclepro.2018.12.306
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J. & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, 119334. https://doi.org/10.1016/j.jclepro.2019.119334
Yusoff, Y. M., Omar, M. K. & Kamarul Zaman, M. D. (2019). Practice of green intellectual capital. Evidence from the Malaysian manufacturing sector. IOP Conference Series: Materials Science and Engineering, 469(1). https://doi.org/10.1088/1757-899X/469/1/012008
Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D. & Samad, S. (2019a). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153
Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D. & Samad, S. (2019b). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153
Published
2023-11-11
How to Cite
Sauid, M. K., Hasan, Z., & Sauid, Z. (2023). A Conceptual Paper on the Effects of Green Intellectual Capital on Business Sustainability. Information Management and Business Review, 15(4(SI)I), 231-238. https://doi.org/10.22610/imbr.v15i4(SI)I.3597
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Copyright (c) 2023 Muna Kameelah Sauid, Zuhairah Hasan, Zulaika Sauid
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