Linking green intellectual capital to sustainability and sustainable business model innovation in manufacturing SMEs: the role of green dynamic capability

Purpose
This study investigates the impact of green intellectual capital (IC) on the economic, social, and environmental sustainability performance of manufacturing small- and medium-sized enterprises (SMEs) in Pakistan–an emerging Asian economy–and the mediating effect of sustainable business model innovation (SBMI). It also examines the moderating effect of green dynamic capability (GDC) on the relationship between green IC and SBMI.

Design/methodology/approach
Data were collected through a survey completed by 324 owners and top managers of manufacturing SMEs in four Pakistani cities. A purposive and snowball sampling approach was used to gather the data. A dual-stage methodological approach (a combination of PLS-SEM and artificial neural networks) was applied to capture both linear connections and complex, hidden, nonlinear patterns between variables. Regression analysis was used to verify the results.

Findings
The findings indicate that green IC positively contributes to manufacturing SMEs' economic sustainability performance (ECSP), social sustainability performance (SSP), and environmental sustainability performance (ESP) in an emerging Asian economy. SBMI appears to mediate these relationships. Furthermore, GDC strengthens green IC's positive effect on SBMI adoption. The artificial neural network results indicate that green human capital has the highest positive influence on ECSP and SSP, suggesting its pivotal role in achieving SMEs' economic and social sustainability goals. However, green relational capital was identified as having the strongest effect on ESP, indicating its crucial role in driving environmental sustainability in SMEs.

Originality/value
The present study is a pioneering effort because, to the best of our knowledge, green IC, SBMI, and GDC have never been systematically tested with the ECSP, SSP and ESP of manufacturing SMEs, nor has their predictive ability been analyzed in an emerging Asian economy. Second, this study divulges the mediating role of SBMI in the relationship between green IC and sustainability performance in an emerging market. Third, it adds to the literature by examining the moderating role of GDC in the link between green IC and SBMI and provides valuable insights into how green IC and GDC interact to foster SBMI adoption. Fourth, the study enriches the resource-based view literature by integrating green IC, SBMI, GDC and sustainability performance. Finally, the study is unique in its use of a dual-stage methodological approach consisting of structural equation modeling and artificial neural networks to capture both linear connections and complicated, hidden, nonlinear patterns that conventional statistical approaches might overlook. No study had analytically assessed how the dimensions of green IC affect the ECSP, SSP and ESP of SMEs by employing this hybrid approach so far.