Methods to coordinate environmental policies with other company activities.
-
Pursuing any environment management strategy is associated with the need to conduct an environmental review, design action schemes, plan the execution of adopted tasks, and provide suitable staff.
The final component of GIC is green relational capital (GRC). GRC is defined as knowledge based on relationships with stakeholders. It is composed of relations with customers, suppliers, strategic partners, institutions, and other members of networks related to environment management and green innovations, which lead to sustainable operations
[7,8,24][7][8][24]. These relationships are based on trust built up between partners through past interactions
[43]. GRC is of major importance tothe formation of human and structural capital
[44]. Both the organization and its stakeholders can benefit from relational capital development
[45]. It enhances communication, augments willingness to cooperate, and spurs engagement in the joint creation of an added value
[46,47,48][46][47][48]. According to Woo et al.
[49], one effect of GRC is improved cooperation between the purchaser and the supplier in terms of environment protection. This is because GRC helps supply chain members share knowledge about ecological production. It facilitates cooperation in environmental protection, green innovation, and in developing business processes committed to reducing adverse environmental impacts
[50,51][50][51].
One component of GRC is green reputation, also known as green corporate image or corporate environmental reputation
[52,53][52][53]. Studies have demonstrated that green corporate image reinforces its industry position and simplifies competitive advantage development
[54]. Other studies confirm the presence of positive correlations between corporate reputation and customer satisfaction and their loyalty
[55]. Green reputation attracts customers who seek products that have positive impacts on the natural environment, strengthening customer relations. Moreover, it stimulates cooperation with stakeholders who feature environmentally-friendly attitudes. All of the above contributed to GRC improvement.
Another constituent of green image development is green reporting connected with green bookkeeping
[56]. According to Dilling
[57], environmental accounting proves the environmental and social responsibility of companies, whereas green reporting is an element of construing relations with the stakeholders
[58]. The portrayal of how (and to what extent) a given company contributes to sustainable development
[59] is the foundation of communicating an organization’s green actions to its internal and external stakeholders
[60]. It serves as evidence of a company’s commitment to environmental issues, which
spurs green corporate image development
[61].
Another crucial factor in GRC formation is green marketing, which is a type of social marketing. It ensures that the links in the production chain perform their tasks in socially and environmentally responsible manners
[62]. Vilkaite-Vaitone et al.
[63] defined green marketing as strategic, tactical, and operational marketing activities that support the creation and delivery of green products. It encompasses, among other things, the promotion of packaging, and products that are safe for the environment
[64]. Green marketing not only favors
a green corporate image, it also plays a crucial role in increasing the environmental awareness of partners in a network of relations.
Overall, green intellectual capital comprises a series of intangible assets that
affect each other within an organization. It includes diverse types of knowledge about environment protection collected both in the heads of the staff and in databases, procedures, systems, and relationships with stakeholders. Given the complex structure of GIC, an important research issue is to identify the GIC components that
may have the greatest impacts on the sustainable development of organizations.
2.3. The Impact of Green Intellectual Capital on Corporate Development
Various
resea
uthorchers have analyzed the contributions of intangible resources to the development of corporate effectiveness, including environmental performance. Asiaei and Jusoh analyzed the contribution of intellectual capital toward improving company performance in Tehran. Their research results demonstrated that three of the capital forms, i.e., human, structural, and relational capital, occupied central roles in improving company performance
[65].
Chen, in his research conducted on a group of enterprises located in Taiwan, showed that all three forms of GIC have powerful impacts on their competitiveness
[7]. In turn, Yadiati et al. focused on investigating the contribution of GIC and company reputations to the development of corporate environmental performance. They determined that strengthening all three forms of GIC increased the environmental effectiveness of enterprises
[4].
Moreover, Yusliza et al., in their research carried out in Malesia, demonstrated that green intellectual capital had a positive impact on both economic performance and environmental and social results
[24]. Sidik et al. arrived at similar conclusions when studying manufacturing enterprises in Indonesia. Their research confirmed the positive and profound impacts of GIC on the improvements of both corporate environmental performance and competitive advantage
[66].
On the other hand, Yong et al. drew attention to the value of environmental practical placement in the area of human resource management. The
resea
uthorchers argued that said practices might help organizations adjust their business strategies to environmental requirements
[8]. Malik et al. likewise emphasized that green human resources management and green intellectual capital are major elements of sustainable business development
[27].
Chen and Chang conducted a study amongst Taiwanese manufacturing companies. Their study findings showed that environmental ethics had a positive impact on the development of green relations and green innovation capability. Moreover, it was established that green human capital is involved in the development of positive relations among
corporate environmental ethics, green relations, and green innovation performance
[1]. Whereas Lin and Chen reported that green knowledge sharing and green service innovations were related to green competitive advantages
[67].
The study of Greek companies conducted by Papadas et al. asserted the role of green marketing in the development of permanent competitive advantages
[68]. Moreover, a study conducted in Indonesia, involving
a group of companies listed on a stock exchange, showed that even though GIC had a positive impact on financial performance, its effect was minor
[69].
To confirm or deny the findings of the analysis of the source literature, the
resea
uthorcher undertook a research study on
the relationships between
GIC and corporate environmental development, in attempt to assess the contributions of individual practices focused on creating green intellectual capital, from the point of view of the potential to develop sustainable organizations. The
author of the studyresearcher considers sustainable development an environmental achievement.