Driving green excellence: how green intellectual capital and transformational leadership boost sustainable performance in manufacturing SMEs

Purpose This study builds on natural resource orchestration theory and ambidexterity theory to investigate how elements of green intellectual capital (GIC) are structured, synthesized and bundled to unlock their value-creation potential in favor of SMEs' green performance (GP). It also aims to examine the mediating effects of ambidextrous green innovation (GI) and the moderating role of green transformational leadership (GTL) in the relationship between GIC and GP. Design/methodology/approach Utilizing the partial least squares-based structural equation modeling method, the study validated and analyzed responses from 685 entrepreneurs and managerial-level employees representing 285 small and medium-sized enterprises (SMEs). Findings The findings reinforce a strong, positive relationship between GIC, ambidextrous GI and GP, underscoring the vital roles of GIC and GI in enhancing SME's GP. The findings also highlight the essential contributions of green human, structural and relational capital in fostering ambidextrous GI. Surprisingly, GTL does not significantly moderate the GIC–GI relationship. However, it exerts a strong direct influence on GI, underscoring the importance of visionary leadership in advancing GI processes and, ultimately, enhancing GP. Originality/value Building on the NRBV, this study incorporates ambidextrous GI as a mediating variable, grounded in the ambidexterity theory, to develop a comprehensive conceptual framework. This dual-theoretical foundation deepens the understanding of how GIC, as an intangible resource and GTL interact through ambidextrous (GI) to shape GP among SMEs. Furthermore, this study provides novel insights into how SMEs can better leverage their GIC to lead the transition towards a more sustainable economy, contributing to both corporate success and the global sustainability agenda.