GREEN INTELLECTUAL CAPITAL AND SUSTAINABLE PERFORMANCE OF SMES: ROLES OF GREEN ABSORPTIVE CAPACITY AND GREEN DYNAMIC CAPABILITIES

The purpose of this research was to find out the impact of green intellectual capital on the sustainable performance of SMEs. Furthermore, the study also evaluated the mediating role of green absorptive capacity and moderating role of green dynamic capabilities in the relationship of green intellectual capital and sustainable performance. The data for the current cross-sectional quantitative study was collected from the 519 senior executives and managerial level employees of the manufacturing SMEs located in 9 industrial estates of Khyber Pakhtunkhwa province registered with the Small Industrial Board (SIDB), Khyber Pakhtunkhwa, and Small and Medium Size Enterprise Development Authority (SMEDA), Pakistan. Standardized scales were adapted from previous studies to collect the data. The results revealed that green intellectual capital has a positive and significant impact on the sustainable performance of SMEs. Furthermore, the said relationship is further strengthened by the green absorptive capacity. The data also supported the fact that the relationship between green intellectual capital and sustainable performance is higher in the presence of higher green dynamic capabilities and vice versa. The study has multiple theoretical and practical implications including a better understanding of variables, their relationships, and how these variables can be used by SMEs for enhancing sustainable performance.