Impact of Green Social Capital on Financial Performance with Emphasis on Green Innovation and Green Competitive Advantage

One of the main concerns that have been emphasized in recent decades is environment. This research aims to investigate impact of green social capital on financial performance with an emphasis on green innovation and green competitive advantage. The research method is based on the objective, applied, and in terms of the implementation method, it is a descriptive survey. The statistical population includes the employees and managers of small and medium-sized manufacturing businesses of Tehran in Iran, and a sample of 277 people was selected using the available sampling method and Cochran formula. To collect the data of the research, a questionnaire tool was used and after confirming the validity and reliability, it was distributed among the sample size in summer 2024. Structural equation modeling and Smart PLS software were used to test the research hypotheses. The results indicate that green social capital, green innovation and green competitive advantage have a positive and significant impact on financial performance. Also by the use of Sobel's test, it was determined green innovation and green competitive advantage play a mediating role in the impact of green social capital on financial performance. These findings may provide policy-makers with crucial information for better environment performance and financial development, which helps address the conflict between stakeholders and companies, may be applicable in Iran and other countries as well.