Investigating the mediating role of green performance measurement systems in the nexus between green intellectual capital and environmental performance

Abstract

Purpose

This study aims to propose and examine a conceptual model that shows how green performance measurement systems (GPMS) mediate the relationship between green intellectual capital components and environmental performance.

Design/methodology/approach

The research surveyed 407 Vietnamese publicly listed companies to gather empirical data. Then, the exploratory factor analysis (EFA) and structural equation modeling (SEM) are used to examine the degree of emphasis firms place on using GPMS to transform green intellectual capital into firm value.

Findings

The results indicate that both green human capital and green organizational capital have a direct positive impact on environmental performance. On the contrary, the influence of green social capital on environmental performance was found to be indirect through the mediation of GPMS.

Practical implications

GPMS can be considered a tool that helps managers renew, develop and synchronize their systems to take advantage of green resources in environmental performance improvement.

Social implications

The effective assimilation of GPMS within industrial entities holds the potential to mitigate air pollution and hazardous waste, thereby ameliorating social conditions for both employees and the neighboring community. Besides that, proficient implementation of GPMS enhances collaborative efforts within the industrial sphere, yielding collective societal benefits.

Originality/value

This study emphasizes the importance of aligning green intellectual capital with appropriate control mechanisms, such as performance measurement systems, to maximize the benefits derived from these capital resources. The findings provide insights for organizations seeking to enhance their environmental performance and sustainability practices by effectively using their intellectual and social capital while implementing robust measurement systems.