Managing Green Capital: The Role of Green Finance and Green Innovation in Driving SME Sustainability in Three Asian Countries

Introduction: This study examines the impact of green intellectual capital, green finance, and social capital on sustainability performance in Indonesia, Malaysia, and Thailand, while investigating the mediating role of green innovation in these relationships. Objectives: The objective is to evaluate how these factors influence sustainability performance and to assess the mediating effect of green innovation. Methods: Data were collected from various companies in Indonesia, Malaysia, and Thailand and analyzed using Partial Least Squares (PLS) and Generalized Method of Moments (GMM). Results: The results indicate that green intellectual capital negatively impacts sustainability performance, whereas green finance and social capital have positive effects. Furthermore, green innovation significantly mediates the relationships between green finance and sustainability performance, green intellectual capital and sustainability performance, and social capital and sustainability performance. Conclusions: These findings underscore the importance of managing green and social capitals to achieve optimal sustainability performance in Indonesia, Malaysia, and Thailand. Businesses should integrate sustainability policies and practices into their plans, encourage green innovation through adequate funding, and foster the growth of social capital. Policymakers should formulate policies that support sustainability and green innovation in the business sector, providing valuable insights for understanding sustainability dynamics in these countries.