IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2019-03-29.html
   My bibliography  Save this article

The Role of Green Intellectual Capital and Organizational Reputation in Influencing Environmental Performance

Author

Listed:
  • Winwin Yadiati

    (Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia)

  • Nissa Nissa

    (Student, Department of Accounting, Padjadjaran University, Indonesia,)

  • Sugiono Paulus

    (Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia)

  • Harry Suharman

    (Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia)

  • Meiryani Meiryani

    (Department of Accounting, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.)

Abstract

The current study fills the gap of the literature by analyzing the contribution of intangible resources in affecting firm s environmental performance. In doing so, the authors aim to examine the contribution of organization s reputation in driving firm s environmental performance. Furthermore, the contribution of the current study is extended to study the crucial role of green intellectual capital in influencing sustainable performance. In this regard, the study measures intellectual capital in the form of green human capital, green social capital and green relational capital in realizing their impact on firm s environmental performance. Confronting the patterns of strict natural traditions and prominent ecological awareness, organizations ought not freeze or overcompensate from the existing ecological regulations as these natural patterns could be moved toward the green practice that may drive them to convey sustainable development and bring consensus in the environmental and organizational objectives. Unlike viewing ecological policies as hindrances of firm's future improvement, the findings of the current study concentrate on finding the right assessment of intangible resources in carrying efficiency in firm's course of sustainable practices by evaluating its impact on environmental performance. The results of PLS-SEM confirm that organizational reputation and green intellectual capital have positive and significantly influenced on environmental performance. The results of partial least square structural equation modelling confirm that a unit increase in green intellectual capital bring 0.449 unit increase in environmental performance of multinational firms in Indonesia. Moreover, a unit increase in organizational reputation also brings positive increase by 0.424 unit in environmental performance in Indonesia multinational firms.

Suggested Citation

  • Winwin Yadiati & Nissa Nissa & Sugiono Paulus & Harry Suharman & Meiryani Meiryani, 2019. "The Role of Green Intellectual Capital and Organizational Reputation in Influencing Environmental Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 261-268.
  • Handle: RePEc:eco:journ2:2019-03-29
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/7752/4336
    Download Restriction: no

    File URL: https://www.econjournals.com/index.php/ijeep/article/view/7752/4336
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Iwedi Marshal, 2017. "Product Brand and Customer Loyalty: A Survey of the Nigeria Banking Industry," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 1(1), pages 7-18.
    2. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    3. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
    4. Zhou Gideon, 2014. "Institutionalising and Mainstreaming Policy Analysis Culture in African Environments," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 1(1), pages 12-25, 03-2014.
    5. Chen Zhixia & Md. Miraj Hossen & Sayed Sami Muzafary & Mareum Begum, 2018. "Green Banking for Environmental Sustainability-Present Status and Future Agenda: Experience from Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(5), pages 571-585, June.
    6. Royston Greenwood & Stan X. Li & Rajshree Prakash & David L. Deephouse, 2005. "Reputation, Diversification, and Organizational Explanations of Performance in Professional Service Firms," Organization Science, INFORMS, vol. 16(6), pages 661-673, December.
    7. Sa'ad Zeki A. Kader Al-Mashaikie & Abdul-Kader Mohammed Al-Karraz, 2015. "Environmental Impact Assessment and Sedimentology of the Carbonate Quarry Site for Al-Maroua'ah Cement Plant in Al-Hodeida District, NW Yemen," Asian Review of Environmental and Earth Sciences, Asian Online Journal Publishing Group, vol. 2(2), pages 23-34.
    8. Albort-Morant, Gema & Leal-Millán, Antonio & Cepeda-Carrión, Gabriel, 2016. "The antecedents of green innovation performance: A model of learning and capabilities," Journal of Business Research, Elsevier, vol. 69(11), pages 4912-4917.
    9. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    10. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio, 2017. "Knowledge Spillovers, ICT and Productivity Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(4), pages 592-618, August.
    11. Ron Bird & Anthony D. Hall & Francesco Momentè & Francesco Reggiani, 2007. "What Corporate Social Responsibility Activities are Valued by the Market?," Journal of Business Ethics, Springer, vol. 76(2), pages 189-206, December.
    12. Arshian Aslam Sharif & Syed Waqas Bukhari, 2014. "Determinants of Brand Equity of QMobile: A case study of Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 49-60, March.
    13. Hameed Olusegun Adebambo & Hasbullah Ashari & Norani Nordin, 2014. "Antecedents and Outcome of Sustainable Environmental Manufacturing Practices," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(3), pages 147-159.
    14. Ufomba Henry, 2014. "Globalization and Environmental Issues: A New Framework for Security Analysis," Humanities and Social Sciences Letters, Conscientia Beam, vol. 2(4), pages 209-216.
    15. Yu-Shan Chen, 2008. "The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms," Journal of Business Ethics, Springer, vol. 77(3), pages 271-286, February.
    16. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    17. O'Mahony, Mary & Vecchi, Michela, 2009. "R&D, knowledge spillovers and company productivity performance," Research Policy, Elsevier, vol. 38(1), pages 35-44, February.
    18. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    19. Edame Greg Ekpung, 2014. "Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach," Journal of Social Economics Research, Conscientia Beam, vol. 1(7), pages 129-140.
    20. Sahar Afshan & Arshian Sharif & Nazneen Waseem & Reema Frooghi, 2018. "Internet banking in Pakistan: an extended technology acceptance perspective," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 27(3), pages 383-410.
    21. Sa'ad Zeki A. Kader A.Kader Al-Mashaikie & Abdul-Kader Mohammed Al-Karraz, 2015. "Environmental Impact Assessment and Sedimentology of the Carbonate Quarry Site for Al-Maroua'ah Cement Plant in Al-Hodeida District, NW Yemen," Asian Review of Environmental and Earth Sciences, Asian Online Journal Publishing Group, vol. 2(3), pages 42-53.
    22. Nguyen Duc Luong & Hoang Vinh Long & Ngo Kim Tuan & Nguyen Duy Thai, 2017. "Using Rubber Aggregate Derived from Discarded Tires for Producing Cement Concrete towards Resource Recovery and Environmental Protection in Vietnam," International Journal of Sustainable Energy and Environmental Research, Conscientia Beam, vol. 6(2), pages 36-49.
    23. Chen Zhixia & Md. Miraj Hossen & Sayed Sami Muzafary & Mareum Begum, 2018. "Green Banking for Environmental Sustainability-Present Status and Future Agenda: Experience from Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(5), pages 571-585.
    24. Sa'ad Zeki A. Kader A.Kader Al-Mashaikie & Abdul-Kader Mohammed Al-Karraz, 2015. "Environmental Impact Assessment and Sedimentology of the Carbonate Quarry Site for Al-Maroua'ah Cement Plant in Al-Hodeida District, NW Yemen," Asian Review of Environmental and Earth Sciences, Asian Online Journal Publishing Group, vol. 2(3), pages 42-53.
    25. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    26. Rosa Maria Dangelico, 2015. "Improving Firm Environmental Performance and Reputation: The Role of Employee Green Teams," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 735-749, December.
    27. Nguyen Duc Luong & Hoang Vinh Long & Ngo Kim Tuan & Nguyen Duy Thai, 2017. "Properties of Concrete Containing Rubber Aggregate Derived From Discarded Tires," Asian Review of Environmental and Earth Sciences, Asian Online Journal Publishing Group, vol. 4(1), pages 12-19.
    28. Ahmad Zomorrodi & Xiaoyan Zhou, 2016. "Role of EKC and PHH in Determining Environment Quality and their Relation to Economic Growth of a Country," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(2), pages 139-144.
    29. Hameed Olusegun Adebambo & Hasbullah Ashari & Norani Nordin, 2014. "Antecedents and Outcome of Sustainable Environmental Manufacturing Practices," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(3), pages 147-159.
    30. Reema Frooghi, Syeda Nazneen Waseem, Sahar Afshan, Zubair Shah, 2015. "Effect of Offline Parent Brand Dimension on Online Trust, Satisfaction and Loyalty: In Context of Newspaper Industry," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(2), pages 223-142, October.
    31. Hany M. Elshamy & Khaled I. Sayed Ahmed, 2017. "Green Fiscal Reforms, Environment and Sustainable Development," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 1(1), pages 48-52.
    32. Reema Frooghi, Syeda Nazneen Waseem, Sahar Afshan, Zubair Shah, 2015. "Effect of Online Parent Brand Dimension on Online Trust, Satisfaction and Loyalty: In Context of Newspaper Industry," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(2), pages 223-241, October.
    33. Zhou Gideon, 2014. "Institutionalising and Mainstreaming Policy Analysis Culture in African Environments," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 1(1), pages 12-25.
    34. repec:pkp:ijseer:2017:p:36-49 is not listed on IDEAS
    35. Jordi Surroca & Josep A. Tribó & Sandra Waddock, 2010. "Corporate responsibility and financial performance: the role of intangible resources," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 463-490, May.
    36. Yu-Shan Chen & Ching-Hsun Chang, 2013. "Enhance environmental commitments and green intangible assets toward green competitive advantages: an analysis of structural equation modeling (SEM)," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(1), pages 529-543, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Afaf Abu Zerr & Ashraf Aaqoulah, 2021. "The Impact of Intellectual Capital on Job Performance based on Faculty Members’ Perceptions at Universities," International Business Research, Canadian Center of Science and Education, vol. 14(7), pages 1-1, June.
    2. Meidijati Meidijati & Yvonne Augustine, 2022. "The Effect of Tax Accounting, Green Accounting, and Carbon Accounting on Environmental, Social, and Governance Performance: Moderated by Green Intellectual Capital," Technium Social Sciences Journal, Technium Science, vol. 31(1), pages 371-387, May.
    3. Rista Bintara & Winwin Yadiati & Muhammad Wahyudin Zarkasyi & Nanny Dewi Tanzil, 2023. "Management of Green Competitive Advantage: A Systematic Literature Review and Research Agenda," Economies, MDPI, vol. 11(2), pages 1-21, February.
    4. Nikolaos S. Trevlopoulos & Thomas A. Tsalis & Konstantinos I. Evangelinos & Konstantinos P. Tsagarakis & Konstantinos I. Vatalis & Ioannis E. Nikolaou, 2021. "The influence of environmental regulations on business innovation, intellectual capital, environmental and economic performance," Environment Systems and Decisions, Springer, vol. 41(1), pages 163-178, March.
    5. Edyta Bombiak, 2022. "Green Intellectual Capital as a Support for Corporate Environmental Development—Polish Company Experience," Energies, MDPI, vol. 15(9), pages 1-18, April.
    6. Alex Sandria Jaya Wardhana & Muafi Muafi, 2021. "Systematic mapping of green human resource management: Bibliometric analysis," Bussecon Review of Social Sciences (2687-2285), Bussecon International Academy, vol. 3(4), pages 01-10, October.
    7. Edyta Bombiak, 2023. "Effect of Green Intellectual Capital Practices on the Competitive Advantage of Companies: Evidence from Polish Companies," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    8. repec:thr:techub:10031:y:2022:i:1:p:371-387 is not listed on IDEAS
    9. Ni Wayan Rustiarini & Desak Ayu Sriary Bhegawati & Ni Putu Yuria Mendra & Nyoman Utari Vipriyanti, 2023. "Resource Orchestration in Enhancing Green Innovation and Environmental Performance in SME," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 251-259, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azhar Susanto & Meiryani Meiryani, 2019. "The impact of Environmental Accounting Information System Alignment on Firm Performance and Environmental Performance: A case of Small and Medium Enterprises s of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 229-236.
    2. Ahmed Nahar Al-Hussaini, 2019. "The Role of Financial Management in Testing Environmental Kuznets Curve in Kuwait: Evidence from ARDL Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 353-359.
    3. Andhyka Tyaz Nugraha & Nor Hasni Osman, 2019. "CO2 Emissions, Economic Growth, Energy Consumption, and Household Expenditure for Indonesia: Evidence from Cointegration and Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 291-298.
    4. Muhammad Yusuf & Zakir Sabara & Ismail Suardi Wekke, 2019. "Role of Innovation in Testing Environment Kuznets Curve: A Case of Indonesian Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 276-281.
    5. Mert Gürlek & Muharrem Tuna, 2018. "Reinforcing competitive advantage through green organizational culture and green innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 38(7-8), pages 467-491, June.
    6. Ratneswary Rasiah & Vinitha Guptan & Muzafar Shah Habibullah, 2018. "Evaluating the Impact of Financial and Economic Factors on Environmental Degradation: A Panel Estimation Study of Selected Asean Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 209-216.
    7. Meiryani Meiryani & Azhar Susanto & Dezie Leonarda Warganegara, 2019. "The Issues Influencing of Environmental Accounting Information Systems: An Empirical Investigation of SMEs in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 282-290.
    8. Moh. Bahzar, 2019. "Effects of Green Transformational and Ethical Leadership on Green Creativity, Eco-Innovation and Energy Efficiency in Higher Education Sector of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 408-414.
    9. Sudawan Somjai & Ratchada Fongtanakit & Khomsan Laosillapacharoen, 2020. "Impact of Environmental Commitment, Environmental Management Accounting and Green Innovation on Firm Performance: An Empirical Investigation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 204-210.
    10. Gholam Reza Zandi & Nadeem Khalid & Dewan Md. Zahurul Islam, 2019. "Nexus of Knowledge Transfer, Green Innovation and Environmental Performance: Impact of Environmental Management Accounting," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 387-393.
    11. Gema Albort-Morant & Jörg Henseler & Antonio Leal-Millán & Gabriel Cepeda-Carrión, 2017. "Mapping the Field: A Bibliometric Analysis of Green Innovation," Sustainability, MDPI, vol. 9(6), pages 1-15, June.
    12. Yanica P. Dimitrova, 2020. "Corporate Social Responsibility and Innovation – the Meaningful Connection," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 89-108.
    13. Abbas Mardani & Dalia Streimikiene & Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Mehrbakhsh Nilashi & Ahmad Jusoh & Habib Zare, 2017. "Application of Structural Equation Modeling (SEM) to Solve Environmental Sustainability Problems: A Comprehensive Review and Meta-Analysis," Sustainability, MDPI, vol. 9(10), pages 1-65, October.
    14. Nur Fitriyah, 2019. "Financial Development and Environmental Degradation in Indonesia: Evidence from Auto Regressive Distributed Lag Bound Testing Method," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 394-400.
    15. Kraus, Sascha & Rehman, Shafique Ur & García, F. Javier Sendra, 2020. "Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    16. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    17. Achi, Awele & Adeola, Ogechi & Achi, Francis Chukwuedo, 2022. "CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility," Journal of Business Research, Elsevier, vol. 139(C), pages 771-781.
    18. Meenakshi Sharma & Akanksha Choubey, 2022. "Green banking initiatives: a qualitative study on Indian banking sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 293-319, January.
    19. I Ketut Budarma & I Ketut Astawa & Cokorda Istri Sri Widhari & Ni Made Rai Erawati, 2020. "Competitive Advantage of Green Hospitality Business Practices in 5 Star Hotels in Bali," Technium Social Sciences Journal, Technium Science, vol. 13(1), pages 420-431, November.
    20. Didin Muhafidin, 2020. "The Role of Fiscal Policy and Monetary Policy in Environmental Degradation in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 504-510.

    More about this item

    Keywords

    Green intellectual capital; organizational reputation; environmental performance; Indonesia.;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2019-03-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.