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Green Intellectual Capital: a critical factor to explain the relationship between corporate sustainable and financial performance

Author

Listed:
  • Ioannis E. Nikolaou

    (Democritus University of Thrace)

  • Thomas A. Tsalis

    (Democritus University of Thrace)

  • Ioannis Kostakis

    (Harokopio University of Athens)

  • Fotini Stergiopoulou

    (Democritus University of Thrace)

  • Ifigeneia Athanasiadou

    (Democritus University of Thrace)

  • Georgios Lanaras-Mamounis

    (Democritus University of Thrace)

  • Konstantinos P. Tsagarakis

    (Technical University of Crete Chania)

Abstract

Following the knowledge-based and intellectual capital-based view of firms, where knowledge is at the center of corporate strategic management, this paper aims to examine the role of Green Intellectual Capital (GIC) in the environmental and financial dimensions of corporate performance. To do so, a methodological framework was developed to evaluate the progress of GIC and corporate environmental performance by utilizing information and data from sustainability reports. Also, the Return of Equity (ROE) indicator was used to assess corporate financial performance. The proposed methodology was applied in a sample of 80 firms to examine the mediator role of GIC in the relationship between financial and environmental performance. The findings show a positive relationship between GIC (as a result of Green Relational Capital (GRC) and Green Organizational Capital (GOC)) and financial performance (ROE), as well as a significant positive relationship between environmental performance and the components of Green Intellectual Capital. Finally, a nonlinear U-shaped relationship between environmental and financial performance is identified.

Suggested Citation

  • Ioannis E. Nikolaou & Thomas A. Tsalis & Ioannis Kostakis & Fotini Stergiopoulou & Ifigeneia Athanasiadou & Georgios Lanaras-Mamounis & Konstantinos P. Tsagarakis, 2024. "Green Intellectual Capital: a critical factor to explain the relationship between corporate sustainable and financial performance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22863-22884, September.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:9:d:10.1007_s10668-023-03579-1
    DOI: 10.1007/s10668-023-03579-1
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