ACHIEVING BUSINESS SUSTAINABILITY THROUGH GREEN INTELLECTUAL CAPITAL: MEDIATING ROLE OF VALUE CREATION AND GREEN INNOVATION

Abstract

The importance of Green Intellectual Capital (GIC) has been growing internationally in the era of the knowledge economy. Due to rising environmental concerns, it is crucial to investigate the effects of green intellectual capital on organizational sustainability in the present day. Hence this study aims to investigate the linkage between green intellectual capital and business sustainability. By using a resource-based approach, it also addresses the issue that how Value Creation (VC) and Green Innovation (GNIN) can mediate between Green Intellectual Capital and Business Sustainability (BS), in the context of the manufacturing sector of Pakistan. A quantitative approach based on SEM and Smart PLS is used. The primary data collected through a close-ended survey questionnaire from 553 middle and upper management of manufacturing sector in Punjab, Pakistan. The results indicated that the association and influence of GIC on the business sustainability of Pakistani manufacturing firms were statistically significant, however the relationship between GNIN and VC was minimal. Notably, all variables showing GIC, GNIN, and VC had a positive and significant effect on business sustainability. Furthermore, GNIN and VC successfully played a mediating role between GIC and BS. Therefore, Pakistani manufacturing enterprises have been suggested to incorporate GNIN and VC in order to achieve business sustainability. However, this research was limited to the Pakistani manufacturing sector and cannot be generalized to other sectors or countries.