Green Intellectual Capital, Pro-environmental Behavior, and Performance: Environmental Performance as Mediator in Indonesian SMEs Eko Nur Fuad (a*)- Mohammad Yunies Edward (b)- Moch Aminnudin (c)- Muhammad Syahrul Rhomadhon (d)- Laisha Viori Avrilian (e)
Universitas Islam Nahdlatul Ulama Jepara
Abstract
This study investigates the impact of green intellectual capital (GIC) and pro-environmental behavior (PEB) on the economic and social performance of Indonesian SMEs, highlighting the mediating role of environmental performance (EnP). Data were gathered from 645 owners, directors, and managers across various industries in Indonesia. Small firms were defined as those with annual sales between IDR 300 million and IDR 2.5 billion, while medium-sized firms had annual sales of IDR 2.5 billion to IDR 50 billion. The analysis used partial least squares structural equation modeling (SEM-PLS). Results indicate that GIC and PEB significantly enhance EnP, which in turn directly improves economic and social performance. EnP also mediates the relationship between GIC, PEB, and business outcomes, demonstrating its critical role as a pathway for sustainable success. This study contributes to the Intellectual Capital theory by showing that effectively managing GIC enables firms to execute sustainable strategies that enhance environmental, economic, and social performance. It also provides empirical evidence that PEB is impactful not only in large firms but also in SMEs, aligning with Stakeholder Theory and the Natural-Resource-Based View, which link green practices to improved business outcomes. These findings offer valuable insights for researchers, policymakers, and practitioners in promoting sustainable business models and advancing the role of SMEs in achieving environmental and economic sustainability.
