Does green business processes optimization spur the relationship between green intellectual capital initiatives and corporate pro-environmental performance?

Purpose With the rise of globalization, numerous ecological challenges have emerged, impacting the global environment in profound ways. This widespread environmental degradation has led to heightened awareness among society, placing significant pressure on businesses to adopt environmentally responsible practices. Against this backdrop, the present study seeks to examine the influence of green intellectual capital initiatives (GICIs) on Corporate Pro-environmental Performance (CPEP) within the industrial and manufacturing sector of Pakistan. Furthermore, it aims to explore the role of Green Business Process Optimization (GBPO) as a mediating variable to spur the relationship between GICIs and CPEP. Design/methodology/approach Empirical data were gathered through structured questionnaires from top and middle managers working in manufacturing firms of Pakistan. Structural equation modeling technique through statistical software Smart-PLS 4.0 was used to test the hypothesized relationships on a usable sample of 237 participants. Findings The results indicate that GBPO significantly mediates the relationship between GICIs and CPEP. Furthermore, the findings reveal that all three dimensions of GICIs–green human capital initiatives, green structural capital initiatives and green relational capital initiatives—positively and significantly enhance CPEP in industrial and manufacturing firms in Pakistan. This suggests that the effective integration of GICIs into production processes improves GBPO, which, in turn, contributes to enhanced CPEP outcomes. Practical implications The present study advises the managers that GICIs support the GBPO by integrating environmentally conscious green human, structural and relational practices across operations. Originality/value This study is framed within the theoretical perspectives of green intellectual capital-based view, resource orchestration theory, natural resource-based view and triple bottom line. By drawing on these frameworks, the study contributes to the existing literature by illustrating the critical role of GICIs in driving GBPO and enhancing CPEP within Pakistan's industrial and manufacturing sector. Additionally, this research provides unique empirical evidence that GBPO significantly mediates the relationship between GICIs and CPEP. This novel contribution offers valuable insights for production and environmental managers, highlighting how they can effectively integrate environmental sustainability into production processes while optimizing the utilization of GICIs.