Translating green strategic intent into green process innovation performance: the role of green intellectual capital

Purpose: Many firms struggle to implement strategies that can successfully enhance the environmental sustainability of their processes. Drawing on the theories of green intellectual capital and complementary assets, this study develops a model describing the mechanism whereby firms can translate a green (i.e., environmental) strategy into a superior green process innovation performance (GPIP). Design/methodology/approach: Regression analysis of multi-source survey data collected from 514 managers at 257 firms (257 top management members and 257 safety or environmental managers) was used to test the hypotheses. Findings: A firm's green strategic intent has positive effects on the three aspects of green intellectual capital (i.e., human, organizational and relational capital). In turn, these three aspects have positive effects on GPIP. Moreover, green organizational capital positively moderates the effect of green relational capital on GPIP, whereas it negatively moderates the effect of human capital on GPIP. Research limitations/implications: In order to implement a green strategy successfully, especially in polluted industries such as the chemical industry, managers need to develop not only the firm's tangible resources but also its intangible resources. The more they invest in green organizational capital, the higher the level of GPIP that can be achieved. On average, a firm's green human capital is more important than its organizational and relational capital. Moreover, its organizational capital helps capture the benefits of its relational capital, but it impairs the creativity of its human capital. Originality/value: The authors contribute to the literature on green strategy implementation by suggesting that green intellectual capital plays a mediating role in the relationship between a firm's green strategic intent and GPIP.