Translating green intellectual capital into performance: the mediating role of environmental performance measurement systems in Japan

Purpose This study is the first to explore how the use of environmental performance (ENP) measurement systems mediates green intellectual capital into organizational performance in Japan. Design/methodology/approach The study employed a quantitative research approach with partial least square structural equation modeling to assess the proposed relationships among the constructs on a sample of 303 general managers, including directors, vice presidents and chief executive officers from publicly listed Japanese companies. Findings The results of a survey of 303 publicly listed Japanese companies showed green relational capital to be positively associated with ENP. In addition, the results revealed a positive relationship between ENP measurement system use and ENP, with green human capital affecting ENP only in the presence of ENP measurement systems as a mediating variable. Finally, ENP measurements were shown to have a positive effect on economic performance through the mediating role of ENP. Originality/value This study contributes to the literature and sheds light on the issue of how companies need to synchronize their green resources with proper organizational control systems to reap the maximum benefits of those green strategic resources. Accordingly, it extends the prior research in this area from mainly the western setting to the representative developed country in Asia, Japan, where there remains a clear paucity of empirical analysis concerning environmental control and management.