Environmental Economics (May 2024)

Green perspective on intellectual capital, corporate social responsibility, and competitive advantage: The role of firm performance

  • Sigit Hermawan,
  • Tariq Tawfeeq Yousif Alabdullah,
  • Sriyono Sriyono,
  • Satrio Sudarso,
  • Prasetyo Utomo

DOI
https://doi.org/10.21511/ee.15(1).2024.08
Journal volume & issue
Vol. 15, no. 1
pp. 97 – 107

Abstract

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Green economy issues can occur both in the external and internal environment of business entities in terms of intellectual capital activities, social responsibility, and competitive advantage. This study aims to examine the relationship between intellectual capital, corporate social responsibility, firm performance, and competitive advantage through the mediating role of firm performance from a green perspective. Data were collected from annual reports accessed through the official Stock Exchange websites in each respective research country. The number of samples used is 60 sample data from pharmaceutical companies in Indonesia, Malaysia, and Singapore. Data analysis is carried out using multiple linear regression, path analysis, and Sobel test. This study shows that green intellectual capital, corporate social responsibility, and firm performance have a significant effect on green competitive advantage. Green intellectual capital and green corporate social responsibility have a significant effect on firm performance. Regarding mediating relationships, the results showed green intellectual capital and corporate social responsibility can increase green competitive advantage through firm performance. This shows that a company manager should pay attention to improving intellectual capital capability and corporate social responsibility because they have been proven to improve firm performance and competitive advantage in the context of green economy issues.

Keywords