Leveraging intellectual capital for green technology innovation: evidence from traditional manufacturing firms in China

Purpose This study examines how intellectual capital (IC) and its components – human, structural, and relational capital – foster green technology innovation (Gr) in traditional manufacturing firms. It further examines the intermediary functions of environmental investment and financing constraints, along with the moderating role of executives' environmental awareness. Design/methodology/approach Employing panel data from 1,426 Chinese listed firms (2008–2023), this research constructs an IC index via the entropy weight method and applies system GMM estimation to address endogeneity concerns. Findings The research findings indicate that IC and its three sub-dimensions all exert a facilitating effect on Gr. Human capital enhances absorptive capacity for green knowledge, structural capital embeds environ-mental routines into core processes, and relational capital expands access to innovation resources. Mediation analysis reveals that IC boosts Gr by increasing environmental investment and mitigating financing constraints. Executives' environmental awareness amplifies these effects, particularly for internal IC. Originality/value This paper extends the intellectual capital literature by connecting IC to Gr mechanisms in a traditional industrial context, highlighting its strategic role in sustainability transitions. It offers theoretical and practical implications regarding the approaches for firms to harness intangible assets in fostering eco-innovation and enhancing environmental performance.