Nexus between green intellectual capital and the sustainability business performance of manufacturing SMEs in Malaysia

Abstract

Purpose: This research attempts to assess the role of green intellectual capital components with respect to the sustainability business performance of manufacturing SMEs in Malaysia. Design/methodology/approach: Empirical data for this study were gathered through structured questionnaire forms, from entrepreneurs, managers, and decision-makers of manufacturing, small and medium enterprises. A sample of 500 individuals from 170 manufacturing SMEs from Malaysia was participated. Partial Least Squares (PLS) Structural Equation Modelling technique was used to examine the impact of green intellectual capital on the sustainability business performance of SMEs. Findings: Results expressed that green intellectual capital has a positive significant impact on the sustainability business performance of manufacturing SMEs in Malaysia. Results also posited that the three components such as green customer capital, green technological capital, and green spiritual capital were supported while green human capital, green structural capital, and green social capital were not supported. Practical implications: The present study inspects how entrepreneurs, managers, and policymakers should practice the concept of green and sustainability to attain maximum benefits from green intellectual capital to increase the sustainability business performance of their organizations. Originality/value: This pioneering research produces a comprehensive theoretical model of green intellectual capital, supporting the current literature where similar works have been yet. This theoretical model will guide entrepreneurs and managers of SMEs to measure green intellectual capital in SMEs. Despite the significant contribution, this study offers insights to researchers, academicians and practitioners to mitigate environmental destruction and to achieve the sustainable business performance of SMEs in Malaysia and developing countries.