Assessing the Mediating Role of Organization Learning Capability between the Relationship of Green Intellectual Capital and Business Sustainability

Abstract

There has been a lot of debate on intellectual capital and its dimensions, except green intellectual capital (GIC). The economic benefit of business not only eliminates the neediness of the region but also invigorate the prosperity in the area; however, the heat of financial interest among business competitor causes social inequality and destruction of the environment. This paper is novel conception due to the lack in prior studies as many did not focus on the relationship between green intellectual capital (green human capital, green structural capital and green relational capital) and business sustainability (BS) in the context of a developing country; Pakistan to assess the mediating role organization learning capability (OLC) between the relationship of GIC and BS. The current study tried to link two theories, natural resource-based view and intellectual capital-based view (NRBV& ICBV), to conceptualize the intangible resources that lead to business sustainability by assimilating the "green" into conventional intellectual capital namely green intellectual capital. Data were collected from 154 SME manufacturing companies in Lahore, Pakistan. The simple random sampling technique used for data collection. SPSS and AMOS software is used for data analysis. The results show that all three dimensions of green intellectual capital effect on business sustainability. While discussing the mediation role of organizational learning capability, OLC mediates the relationship between human capital and business sustainability. Furthermore, OLC does not play a mediation role between structural capital, relational capital, and business sustainability. Finally, this study described limitations as well as future directions