Abstract:
In the contemporary landscape marked by heightened environmental awareness, businesses face escalating expectations to embrace environmental sustainability. This global shift is propelled by a collective recognition of the urgent need for green practices. While prior studies have explored several antecedents of green practices implementation, a critical study gap exists in understanding the empirical impact of green intellectual capital and institutional pressures, as well as the subsequent impact of these practices on environmental and financial performance. This study aims to empirically investigate the role of the each pillar of green intellectual capital and of the institutional pressure in influencing organizations to implement green practices. In addition, it also tries to unlock the subsequent impact of green practices on environmental and financial performance.
Deploying intellectual capital-based view theory and institutional theory, and using primary survey data from 203 Italy-based hotels, our Partial Least Square Structural Equation Modelling (PLS-SEM) analysis shows that all pillars of green intellectual capital and institutional pressures except for green human capital, positively impact green practices adoption. The study also shows positive contribution of these practices in enhancing environmental and financial performance.
The study contributes to the literature of green intellectual capital management, institutionalization, green practices management. The study offers managerial insights for managers to implement green practices through the development of green intellectual capital for improving environmental and financial performance. The study also provide useful implications for policymakers to formulate stringent environmental regulations, improve legal prosecution and provide financial incentives for sustainable initiatives.
