Green intellectual capital as the cornerstone of sustainable performance: A PLS-SEM Analysis

Abstract

Abstract 
The study explores the role of green intellectual capital (GIC) in improving sustainable performance (SP) for pharmaceutical firms in Pakistan, focusing on the mediating effect of GSCM. A research sample consists of 196 responses from managers and sustainability officers in the pharmaceutical industry; the research operationalizes PLS-SEM to test the hypotheses developed. According to the findings, the direct relationship between GIC and SP is positive and significant, with a path coefficient (β = 0.214, p = 0.008). GSCM acts as a full mediator in this study, whereby GIC has a positive influence on GSCM (β = 0.724, p < 0.001) and GSCM significantly influences SP at β = 0.583, p < 0.001. In addition, the analysis of mediation has shown that the indirect effect of GIC on SP via GSCM is significant (β = 0.422, 95% CI [0.312, 0.538]). Results show that pharmaceutical firms believe in investing in GIC-green human structural and relational capital-and anticipate an increased environmental, social, and economic performance. The results also provide useful contributions to the literature of sustainable business practices and actionable insights to managers attempting to leverage intellectual resources to reach sustainability objectives. The implications of this study point out the benefits of environmental knowledge integration into organizational and supply chain strategy processes. This study provides some policy recommendations to enhance green innovation and sustainability in the emerging economy manufacturing context in Pakistan. 
Keywords: GSCM; GIC; Sustainable Performance; PLS-SEM; Pharmaceutical industry.