Transforming Green Intellectual Capital into ESG Performance: The Mediating Role of Green Knowledge Sharing
Keywords:
ESG performance, green intellectual capital, green knowledge sharing, emerging market
Abstract
This study examines whether green intellectual capital (GIC) improves environmental, social, and governance (ESG) performance through green knowledge sharing (GKS) in Indonesian listed firms. Drawing on the natural resource-based view, this study positions GIC as an intangible green resource base that can be converted into sustainability outcomes when environmental knowledge is actively disseminated across the organization. Using partial least squares structural equation modeling with 218 observations, the findings show that GIC has a positive and significant effect on GKS, GKS has a positive and significant effect on ESG performance, and GIC also retains a positive direct effect on ESG performance. The indirect effect is significant, indicating partial mediation. The model explains 18.1% of the variance in GKS and 53.9% of the variance in ESG performance, with acceptable reliability, convergent validity, discriminant validity, and model fit. This study contributes by clarifying that green knowledge sharing is a critical organizational mechanism through which green intellectual capital is translated into stronger ESG outcomes in an emerging-market context.
References
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Begum, S., Ashfaq, M., Asiaei, K., & Shahzad, K. (2023). Green intellectual capital and green business strategy: The role of green absorptive capacity. Business Strategy and the Environment, 32(7), 4907–4923. https://doi.org/10.1002/bse.3399
Cancela, B. L., Coelho, A., & Neves, M. E. (2023). The role of green strategic alliances and their impact on green organizational identity and sustainability. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-05-2023-0332
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Ferri, S., Gotti, G., & Morrone, C. (2026). Green intellectual capital disclosure, CEO gender and corporate performance: an analysis of Italian listed companies. Business Process Management Journal, 32(1), 148–169. https://doi.org/10.1108/BPMJ-10-2024-0940
Forenten, E. S., Mensah, P. O., Yong, J. Y., & Mensah, H. K. (2026). Green minds, green outcomes: Green intellectual capital drives environmental performance via creativity, moderated by leadership and regulations in Ghana. Business Strategy and the Environment. https://doi.org/10.1002/bse.70605
Khan, A. N., Mehmood, K., & Kwan, H. K. (2024). Green knowledge management: A key driver of green technology innovation and sustainable performance in the construction organizations. Journal of Innovation and Knowledge, 9(1). https://doi.org/10.1016/j.jik.2023.100455
Khan, R. U., Saqib, A., Abbasi, M. A., Mikhaylov, A., & Pinter, G. (2023). Green leadership, environmental knowledge sharing, and sustainable performance in manufacturing industry: Application from upper echelon theory. Sustainable Energy Technologies and Assessments, 60. https://doi.org/10.1016/j.seta.2023.103540
Khizar, H. M. U., Rafique, A., & Al-Waqfi, M. (2025). Green knowledge sharing at the workplace: A systematic review and future trajectories. In International Journal of Information Management Data Insights (Vol. 5, Number 2). Elsevier B.V. https://doi.org/10.1016/j.jjimei.2025.100361
Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., & Lee, K. (2024). Green intellectual capital and environmental performance: identifying the pivotal role of green ambidexterity innovation and top management environmental awareness. Journal of Intellectual Capital, 25(2–3), 380–401. https://doi.org/10.1108/JIC-08-2023-0193
Martiny, A., Taglialatela, J., Testa, F., & Iraldo, F. (2024). Determinants of environmental social and governance (ESG) performance: A systematic literature review. In Journal of Cleaner Production (Vol. 456). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2024.142213
Mulatsih, S. N. (2025). Green intellectual capital and eco-innovation in shaping sustainable financial performance: Evidence from Indonesia. Social Sciences and Humanities Open, 11. https://doi.org/10.1016/j.ssaho.2025.101345
Pham, C. Van, Liu, S. F., & Chen, S. H. (2024). Corporate ESG performance and intellectual capital: International evidence. Asia Pacific Management Review, 29(3), 306–346. https://doi.org/10.1016/j.apmrv.2023.12.003
Ramadana, M., Masnita, Y., Yusran, H. L., & Jurnali, T. (2025). Green intellectual capital and innovation: Keys to sustainable environmental performance in manufacturing. International Journal of Scientific Research and Management (IJSRM), 13(04), 8788–8799. https://doi.org/10.18535/ijsrm/v13i04.em12
Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163. https://doi.org/10.1016/j.techfore.2020.120481
Rubel, M. R. B., Kee, D. M. H., & Rimi, N. N. (2021). The influence of green HRM practices on green service behaviors: the mediating effect of green knowledge sharing. Employee Relations, 43(5), 996–1015. https://doi.org/10.1108/ER-04-2020-0163
Saleem, F., Pinto, L., & Malik, M. I. (2024). Green knowledge sharing and the green performance nexus: A moderated mediation model. Sustainability (Switzerland), 16(22). https://doi.org/10.3390/su16229654
Septiany, S., Jurnali, T., Sim, C. A., Suparman, M., & Wati, E. (2026). Strengthening transparency and performance: The role of independent commissioners in enhancing CSR disclosure’s impact on firm performance. Jurnal Siasat Bisnis, 1–17. https://doi.org/10.20885/jsb.vol30.iss1.art1
Shahbaz, M. H., Naseem, M. A., Battisti, E., & Alfiero, S. (2024). The effect of green intellectual capital and innovative work behavior on green process innovation performance in the hospitality industry. Journal of Intellectual Capital, 25(2–3), 402–422. https://doi.org/10.1108/JIC-02-2023-0034
Shaikh, F., Afshan, G., & Channa, K. A. (2024). Organizational commitment to sustainability: considering the role of leadership, green HRM and green knowledge sharing. Journal of Organizational Change Management, 37(2), 356–373. https://doi.org/10.1108/JOCM-09-2022-0282
Song, M., Yang, M. X., Zeng, K. J., & Feng, W. (2020). Green knowledge sharing, stakeholder pressure, absorptive capacity, and green innovation: Evidence from Chinese manufacturing firms. Business Strategy and the Environment, 29(3), 1517–1531. https://doi.org/10.1002/bse.2450
Suhardjo, I., & Suparman, M. (2024). Employee engagement and green finance: An analysis of Indonesian banking sustainability reports. Journal of Risk and Financial Management, 17(12). https://doi.org/10.3390/jrfm17120575
Wang, C. H., & Juo, W. J. (2021). An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability. Business Strategy and the Environment, 30(7), 3241–3254. https://doi.org/10.1002/bse.2800
Wang, N., Zhang, J., & Wang, W. (2022). Impact of environmental innovation strategy on green competitiveness: Evidence from China. International Journal of Environmental Research and Public Health, 19(10). https://doi.org/10.3390/ijerph19105879
Wang, S., Abbas, J., Sial, M. S., Álvarez-Otero, S., & Cioca, L. I. (2022). Achieving green innovation and sustainable development goals through green knowledge management: Moderating role of organizational green culture. Journal of Innovation and Knowledge, 7(4). https://doi.org/10.1016/j.jik.2022.100272
Wati, E., Jesslyn, J., & Septiany, S. (2026). Green capabilities and corporate competitive advantage: The moderating effect of green culture. Studi Akuntansi, Keuangan, Dan Manajemen, 5(3), 699–715. https://doi.org/10.35912/sakman.v5i3.5660
Xin, C., & Wang, Y. (2023). Green intellectual capital and green competitive advantage in hotels: The role of environmental product innovation and green transformational leadership. Journal of Hospitality and Tourism Management, 57, 148–157. https://doi.org/https://doi.org/10.1016/j.jhtm.2023.10.001
Yadiati, W., Nissa, Paulus, S., Suharman, H., & Meiryani. (2019). The role of green intellectual capital and organizational reputation in influencing environmental performance. International Journal of Energy Economics and Policy, 9(3), 261–268. https://doi.org/10.32479/ijeep.7752
Yong, J. Y., Yusliza, M. Y., Ramayah, T., & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364–374. https://doi.org/10.1016/j.jclepro.2018.12.306
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249. https://doi.org/10.1016/j.jclepro.2019.119334
Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D., & Samad, S. (2019). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153
Zairbani, A., & Kumar, S. J. P. (2025). How does green knowledge sharing improve sustainable business performance? Knowledge and Process Management, 32(1), 42–53. https://doi.org/10.1002/kpm.1796
Alnaim, M., & Metwally, A. B. M. (2024). Green intellectual capital and corporate environmental performance: Does environmental management accounting matter? Administrative Sciences, 14(12). https://doi.org/10.3390/admsci14120311
Asiaei, K., Bontis, N., Alizadeh, R., & Yaghoubi, M. (2022). Green intellectual capital and environmental management accounting: Natural resource orchestration in favor of environmental performance. Business Strategy and the Environment, 31(1), 76–93. https://doi.org/10.1002/bse.2875
Asiaei, K., Jusoh, R., Barani, O., & Asiaei, A. (2022). How does green intellectual capital boost performance? The mediating role of environmental performance measurement systems. Business Strategy and the Environment, 31(4), 1587–1606. https://doi.org/10.1002/bse.2971
Asiaei, K., O’Connor, N. G., Barani, O., & Joshi, M. (2023). Green intellectual capital and ambidextrous green innovation: The impact on environmental performance. Business Strategy and the Environment, 32(1), 369–386. https://doi.org/10.1002/bse.3136
Bashir, Y., Zhao, Y., Qiu, H., Ahmed, Z., & Yau, J. T. H. (2023). Environmental, social, and governance performance and value creation in product market: Evidence from emerging economies. Journal of Risk and Financial Management, 16(12). https://doi.org/10.3390/jrfm16120517
Begum, S., Ashfaq, M., Asiaei, K., & Shahzad, K. (2023). Green intellectual capital and green business strategy: The role of green absorptive capacity. Business Strategy and the Environment, 32(7), 4907–4923. https://doi.org/10.1002/bse.3399
Cancela, B. L., Coelho, A., & Neves, M. E. (2023). The role of green strategic alliances and their impact on green organizational identity and sustainability. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-05-2023-0332
Elnagar, A. K., & Aljuwaiber, A. (2025). The nexus of green intellectual capital and sustainable performance: leadership commitment and knowledge sharing as influences. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-09-2024-0290
Ferri, S., Gotti, G., & Morrone, C. (2026). Green intellectual capital disclosure, CEO gender and corporate performance: an analysis of Italian listed companies. Business Process Management Journal, 32(1), 148–169. https://doi.org/10.1108/BPMJ-10-2024-0940
Forenten, E. S., Mensah, P. O., Yong, J. Y., & Mensah, H. K. (2026). Green minds, green outcomes: Green intellectual capital drives environmental performance via creativity, moderated by leadership and regulations in Ghana. Business Strategy and the Environment. https://doi.org/10.1002/bse.70605
Khan, A. N., Mehmood, K., & Kwan, H. K. (2024). Green knowledge management: A key driver of green technology innovation and sustainable performance in the construction organizations. Journal of Innovation and Knowledge, 9(1). https://doi.org/10.1016/j.jik.2023.100455
Khan, R. U., Saqib, A., Abbasi, M. A., Mikhaylov, A., & Pinter, G. (2023). Green leadership, environmental knowledge sharing, and sustainable performance in manufacturing industry: Application from upper echelon theory. Sustainable Energy Technologies and Assessments, 60. https://doi.org/10.1016/j.seta.2023.103540
Khizar, H. M. U., Rafique, A., & Al-Waqfi, M. (2025). Green knowledge sharing at the workplace: A systematic review and future trajectories. In International Journal of Information Management Data Insights (Vol. 5, Number 2). Elsevier B.V. https://doi.org/10.1016/j.jjimei.2025.100361
Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., & Lee, K. (2024). Green intellectual capital and environmental performance: identifying the pivotal role of green ambidexterity innovation and top management environmental awareness. Journal of Intellectual Capital, 25(2–3), 380–401. https://doi.org/10.1108/JIC-08-2023-0193
Martiny, A., Taglialatela, J., Testa, F., & Iraldo, F. (2024). Determinants of environmental social and governance (ESG) performance: A systematic literature review. In Journal of Cleaner Production (Vol. 456). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2024.142213
Mulatsih, S. N. (2025). Green intellectual capital and eco-innovation in shaping sustainable financial performance: Evidence from Indonesia. Social Sciences and Humanities Open, 11. https://doi.org/10.1016/j.ssaho.2025.101345
Pham, C. Van, Liu, S. F., & Chen, S. H. (2024). Corporate ESG performance and intellectual capital: International evidence. Asia Pacific Management Review, 29(3), 306–346. https://doi.org/10.1016/j.apmrv.2023.12.003
Ramadana, M., Masnita, Y., Yusran, H. L., & Jurnali, T. (2025). Green intellectual capital and innovation: Keys to sustainable environmental performance in manufacturing. International Journal of Scientific Research and Management (IJSRM), 13(04), 8788–8799. https://doi.org/10.18535/ijsrm/v13i04.em12
Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163. https://doi.org/10.1016/j.techfore.2020.120481
Rubel, M. R. B., Kee, D. M. H., & Rimi, N. N. (2021). The influence of green HRM practices on green service behaviors: the mediating effect of green knowledge sharing. Employee Relations, 43(5), 996–1015. https://doi.org/10.1108/ER-04-2020-0163
Saleem, F., Pinto, L., & Malik, M. I. (2024). Green knowledge sharing and the green performance nexus: A moderated mediation model. Sustainability (Switzerland), 16(22). https://doi.org/10.3390/su16229654
Septiany, S., Jurnali, T., Sim, C. A., Suparman, M., & Wati, E. (2026). Strengthening transparency and performance: The role of independent commissioners in enhancing CSR disclosure’s impact on firm performance. Jurnal Siasat Bisnis, 1–17. https://doi.org/10.20885/jsb.vol30.iss1.art1
Shahbaz, M. H., Naseem, M. A., Battisti, E., & Alfiero, S. (2024). The effect of green intellectual capital and innovative work behavior on green process innovation performance in the hospitality industry. Journal of Intellectual Capital, 25(2–3), 402–422. https://doi.org/10.1108/JIC-02-2023-0034
Shaikh, F., Afshan, G., & Channa, K. A. (2024). Organizational commitment to sustainability: considering the role of leadership, green HRM and green knowledge sharing. Journal of Organizational Change Management, 37(2), 356–373. https://doi.org/10.1108/JOCM-09-2022-0282
Song, M., Yang, M. X., Zeng, K. J., & Feng, W. (2020). Green knowledge sharing, stakeholder pressure, absorptive capacity, and green innovation: Evidence from Chinese manufacturing firms. Business Strategy and the Environment, 29(3), 1517–1531. https://doi.org/10.1002/bse.2450
Suhardjo, I., & Suparman, M. (2024). Employee engagement and green finance: An analysis of Indonesian banking sustainability reports. Journal of Risk and Financial Management, 17(12). https://doi.org/10.3390/jrfm17120575
Wang, C. H., & Juo, W. J. (2021). An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability. Business Strategy and the Environment, 30(7), 3241–3254. https://doi.org/10.1002/bse.2800
Wang, N., Zhang, J., & Wang, W. (2022). Impact of environmental innovation strategy on green competitiveness: Evidence from China. International Journal of Environmental Research and Public Health, 19(10). https://doi.org/10.3390/ijerph19105879
Wang, S., Abbas, J., Sial, M. S., Álvarez-Otero, S., & Cioca, L. I. (2022). Achieving green innovation and sustainable development goals through green knowledge management: Moderating role of organizational green culture. Journal of Innovation and Knowledge, 7(4). https://doi.org/10.1016/j.jik.2022.100272
Wati, E., Jesslyn, J., & Septiany, S. (2026). Green capabilities and corporate competitive advantage: The moderating effect of green culture. Studi Akuntansi, Keuangan, Dan Manajemen, 5(3), 699–715. https://doi.org/10.35912/sakman.v5i3.5660
Xin, C., & Wang, Y. (2023). Green intellectual capital and green competitive advantage in hotels: The role of environmental product innovation and green transformational leadership. Journal of Hospitality and Tourism Management, 57, 148–157. https://doi.org/https://doi.org/10.1016/j.jhtm.2023.10.001
Yadiati, W., Nissa, Paulus, S., Suharman, H., & Meiryani. (2019). The role of green intellectual capital and organizational reputation in influencing environmental performance. International Journal of Energy Economics and Policy, 9(3), 261–268. https://doi.org/10.32479/ijeep.7752
Yong, J. Y., Yusliza, M. Y., Ramayah, T., & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364–374. https://doi.org/10.1016/j.jclepro.2018.12.306
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249. https://doi.org/10.1016/j.jclepro.2019.119334
Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D., & Samad, S. (2019). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153
Zairbani, A., & Kumar, S. J. P. (2025). How does green knowledge sharing improve sustainable business performance? Knowledge and Process Management, 32(1), 42–53. https://doi.org/10.1002/kpm.1796
Published
2026-04-19
How to Cite
Erna Wati, Yolanda Masnita, Husna Leila Yusran, & Meiliana Suparman. (2026). Transforming Green Intellectual Capital into ESG Performance: The Mediating Role of Green Knowledge Sharing. International Journal of Economics, Business and Innovation Research, 5(03), 390-403. https://doi.org/10.63922/ijebir.v5i03.3214
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