Green Intellectual Capital and Environmental and Social Sustainability: The Mediating Effects of Financial Condition

The function of Green Intellectual Capital (GIC) in promoting social and environmental sustainability in the manufacturing industry is investigated in this study. GIC, which is made up of Green Relational Capital (GRC), Green Structural Capital (GSC), and Green Human Capital (GHC), is a strategic tool that helps businesses adopt sustainable practices. To give a thorough grasp of how GIC supports sustainability, the study combines the Resource-Based View (RBV) and Stakeholder Theory. According to RBV, businesses with a high GIC have a higher chance of gaining a competitive edge through operational effectiveness and innovation driven by sustainability. In order to satisfy the demands of investors, workers, customers, and regulatory agencies, it is critical to strike a balance between economic performance and social and environmental obligations, according to stakeholder theory. The study also investigates how financial circumstances may act as a mediator in the connection between GIC and sustainability results. While financially constrained firms, especially small and medium-sized enterprises (SMEs), frequently struggle to integrate sustainability initiatives due to limited access to green finance, financially strong firms are better equipped to adopt green technologies, workforce training, and sustainable supply chains. To support sustainable company transitions, policymakers must put in place focused interventions like tax breaks, subsidies, and green finance programs. According to the results, companies may improve their long-term profitability, operational resilience, and market positioning while lowering environmental degradation by carefully incorporating GIC into their corporate frameworks. Future studies could look into industry-specific obstacles to the adoption of GIC and assess how well regulatory frameworks support sustainability. In the end, this study emphasizes how companies, legislators, and financial institutions must work together to fully realize GIC's potential and facilitate the shift to a more sustainable industrial sector.