The Nexus between Environmental Corporate Social Responsibility, Green Intellectual Capital and Green Innovation towards Business Sustainability: An Empirical Analysis of Chinese Automobile Manufacturing Firms

Abstract

Manufacturing organizations have a pivotal role in reducing the adverse impact of global warming by adopting sustainable practices and producing environmentally-friendly products. Organizations are engaged in environmental corporate social responsibility (ECSR) and emphasize green intellectual capital (GIC), green innovative products and support for business sustainability (BUS). The current study aims to analyze the impact of organizational ECSR and GIC on green innovation (GIN) and BUS. The data for 237 participants from the manufacturing firms were analyzed via partial least square structural equation modelling (PLS-SEM). The study results revealed that ECSR and GIC are crucial for GIN and BUS. The study’s findings revealed that ECSR positively and significantly impacts green relational capital (GRC) and green structural capital (GSC). However, ECSR’s positive impact on green human capital (GHC) was insignificant. Further, the results of the mediation analysis show that GIN serves as a full mediator between GIC’s two components, GRC and GSC and a partial mediator between GHC and BUS. This study extends the environmental management literature and suggests measures for practitioners to enhance organizational capabilities in order to address environmental issues through innovative green initiatives.