IMPLEMENTATION OF SUSTAINABLE PERFORMANCE THROUGH THE GREEN RELATIONAL CAPITAL AND GREEN INNOVATION MODELS
Abstract
The purpose of this study is to explore the influence of green relational capital and green innovation on sustainable performance, developed within a single model and explained through the Resource-Based Theory (RBT) as the main theoretical framework. The research sample consisted of 193 micro, small, and medium enterprises (MSMEs). Data were analyzed using the structural equation model with Partial Least Squares (PLS). The findings indicate that both green relational capital and green innovation significantly affect sustainable performance. This research contributes to the Resource-Based Theory by demonstrating that MSMEs are able to transform their resources into capabilities that foster green relational capital, such as two-way communication with customers, suppliers, networks, and partners regarding environmental management, as well as eco-friendly innovations. These practices enable businesses to generate profit and sustain a competitive advantage
References
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Cohen, S., & Kaimenakis, N. (2007). Intellectual capital and corporate performance in knowledge-intensive SMEs. Learning Organization, 14(3), 241–262. https://doi.org/10.1108/09696470710739417
Croes, R., Ridderstaat, J., Bąk, M., & Zientara, P. (2021). Tourism specialization, economic growth, human development and transition economies: The case of Poland. Tourism Management, 82(May 2020). https://doi.org/10.1016/j.tourman.2020.104181
Dangelico, R. M., & Pontrandolfo, P. (2015). Being “Green and Competitive”: The Impact of Environmental Actions and Collaborations on Firm Performance. Business Strategy and the Environment, 24(6), 413–430. https://doi.org/10.1002/bse.1828
Delgado-Verde, M., Amores-Salvadó, J., Martín-de Castro, G., & Emilio Navas-López, J. (2014). Erratum: Green intellectual capital and environmental product innovation: the mediating role of green social capital. Knowledge Management Research & Practice, 12(3), 350–350. https://doi.org/10.1057/kmrp.2014.8
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Firmansyah, A., Qadri, R. A., Permatasari, P., Andriani, A. F., Elvira, S. F., & Maratno. (2024). Green Intellectual Capital and Corporate Environmental Performance: Does Environmental Management Accounting Matter? Journal of Accounting Research, Organization, and Economics, 7(3), 297–313. https://doi.org/10.3390/admsci14120311
García-Aquino, M. de los Á., Lagúnes-Hernández, A. del R., & García-Santillán, A. (2024). The Role of Housewives in the Management of Household Finances. TEM Journal, 13(3), 2012–2024. https://doi.org/10.18421/tem133-29
Guzman, G. M., Serna, M. del C. M., & Castro, Pinzón, S. Y. (2017). Entrepreneurial Orientation and Growth in Mexican Small Business. Journal of Management and Sustainability, 7(1), 94. https://doi.org/10.5539/jms.v7n1p94
Haddad, A., Hagain, F., Lefilef, A., Roucham, B., & Alkhalaf, M. A. (2024). Green Intellectual Capital: A Multidimensional Approach to Sustainable Performance Waste Recycling Management in Algeria. Futurity Economics&Law, 4(3), 99–117. https://doi.org/10.57125/fel.2024.09.25.07
Huang, J. W., & Li, Y. H. (2017). Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity. Journal of Business Ethics, 145(2), 309–324. https://doi.org/10.1007/s10551-015-2903-y
Hunafah, D. R., & Rachmawati, S. (2023). Pengaruh Modal Manusia Hijau, Modal Struktural Hijau, Modal Relasional Hijau Terhadap Kinerja Perusahaan Dengan Keunggulan Kompetitif Hijau Sebagai Variabel Moderasi. Jurnal Ekonomi Trisakti, 3(2), 3405–3414. https://doi.org/10.25105/jet.v3i2.18137
Husnaini, W., & Tjahjadi, B. (2021). Quality management, green innovation and firm value: Evidence from indonesia. International Journal of Energy Economics and Policy, 11(1), 255–262. https://doi.org/10.32479/ijeep.10282
Jahanshahi, A. A., Pitamber, B. K., & Nawaser, K. (2010). Issues and challenges for women entrepreneurs in global scene, with special reference to India. Australian Journal of Basic and Applied Sciences, 4(9), 4347–4356.
Khan, R. U., Salamzadeh, Y., Shah, S. Z. A., & Hussain, M. (2021). Factors affecting women entrepreneurs’ success: a study of small- and medium-sized enterprises in emerging market of Pakistan. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00145-9
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Liu, H., & Lyu, C. (2022). Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China. Sustainability (Switzerland), 14(19). https://doi.org/10.3390/su141912516
Maimuna, Y., Limbong, D., Pracita, & Sriayu. (2022). Meningkatkan Keterlibatan Perempuan Dalam Pengembangan UMKM Berbasis Pengetahuan Khas Perempuan Kota Kendari. Jurnal Ekonomi, 27(3), 399–416. https://doi.org/10.24912/je.v27i3.1114
Makhija, M. (2003). Comparing the resource-based and market-based views of the firm: Empirical evidence from Czech privatization. Strategic Management Journal, 24(5), 433–451. https://doi.org/10.1002/smj.304
Mihalic, T. (2016). Sustainable-responsible tourism discourse - Towards “responsustable” tourism. Journal of Cleaner Production, 111(August), 461–470. https://doi.org/10.1016/j.jclepro.2014.12.062
Mohd, T. A. M. T., Yunus, R. M., Hairi, F., Hairi, N. N., & Choo, W. Y. (2019). Social support and depression among community dwelling older adults in Asia: A systematic review. BMJ Open, 9(7). https://doi.org/10.1136/bmjopen-2018-026667
Naciti, V. (2019). Corporate governance and board of directors: The effect of a board composition on firm sustainability performance. Journal of Cleaner Production, 237, 117727. https://doi.org/10.1016/j.jclepro.2019.117727
Parmar, P., Rathod, G. B., Rathod, S., & Goyal, R. (2014). Original Research Article Study of knowledge , attitude and practice of general population of Gandhinagar towards hypertension. International Journal of Current Microbiology and Applied Sciences, 3(8), 680–685.
Ratnawati, R., Rokhman, M. T. N., Agus, A., & Ningsih, T. (2024). Confirmatory Analysis as a Tool for Forming Financial Inclusion , Financial Well-being , and Business Sustainability of MSMEs in the East Java Handicraft Export Sector (Issue Bistic). Atlantis Press International BV. https://doi.org/10.2991/978-94-6463-576-8
Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory and Practice, 33(3), 761–787. https://doi.org/10.1111/j.1540-6520.2009.00308.x
Singh, S. K., Giudice, M. Del, Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting and Social Change, 150(October 2019), 119762. https://doi.org/10.1016/j.techfore.2019.119762
Vale, J., Miranda, R., Azevedo, G., & Tavares, M. C. (2022). The Impact of Sustainable Intellectual Capital on Sustainable Performance: A Case Study. Sustainability (Switzerland), 14(8), 1–17. https://doi.org/10.3390/su14084382
Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24(13), 1307–1314. https://doi.org/10.1002/smj.360
Wu, R., Zhang, J., Yu, Y., Jasimuddin, S. M., & Zhang, J. Z. (2023). The Impact of Value Cocreation on CSR Innovation and Economic Performance. Sustainability (Switzerland), 15(5), 1–22. https://doi.org/10.3390/su15054008
Yong, J. Y., Yusliza, M. Y., Ramayah, T., & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364–374. https://doi.org/10.1016/j.jclepro.2018.12.306
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, 119334. https://doi.org/10.1016/j.jclepro.2019.119334
Zahoor, N., & Gerged, A. M. (2021). Relational capital, environmental knowledge integration, and environmental performance of small and medium enterprises in emerging markets. Business Strategy and the Environment, 30(8), 3789–3803. https://doi.org/10.1002/bse.2840
Zalfa, A. N., & Novita, N. (2023). Green Intellectual Capital Terhadap Sustainable Performance. Jurnal Keuangan Dan Perbankan, 18(1), 25. https://doi.org/10.35384/jkp.v18i1.329
Alkaf, A. R., Priatna, D. K., Yusliza, M. Y., Farooq, K., Khan, A., & Rastogi, M. (2023). Green Intellectual Capital and Sustainability: the Moderating Role of Top Management Support. Polish Journal of Management Studies, 28(1), 25–42. https://doi.org/10.17512/pjms.2023.28.1.02
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. In Journal of Management (Vol. 17, Issue 1, pp. 99–120). https://doi.org/10.1177/014920639101700108
Barney, J. B., Ketchen, D. J., & Wright, M. (2011). The future of resource-based theory: Revitalization or decline? Journal of Management, 37(5), 1299–1315. https://doi.org/10.1177/0149206310391805
Bhatti, S. M., Zia ul Haq, M., Kanwal, S., & Makhbul, Z. K. M. (2024). Impact of green intellectual capital, green organizational culture, and frugal innovation on sustainable business model innovation: Dataset of manufacturing firms in Pakistan. Data in Brief, 54, 110419. https://doi.org/10.1016/j.dib.2024.110419
Candy, Jesslyn, & Haryanto, H. (2024). Hubungan Antara Corporate Governance Dan Green Innovation: Studi Terhadap Kinerja Perusahaan Manufaktur. Equilibrium, 13(2), 292–305.
Chen, Y. S. (2008). The positive effect of green intellectual capital on competitive advantages of firms. Journal of Business Ethics, 77(3), 271–286. https://doi.org/10.1007/s10551-006-9349-1
Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339. https://doi.org/10.1007/s10551-006-9025-5
Cohen, S., & Kaimenakis, N. (2007). Intellectual capital and corporate performance in knowledge-intensive SMEs. Learning Organization, 14(3), 241–262. https://doi.org/10.1108/09696470710739417
Croes, R., Ridderstaat, J., Bąk, M., & Zientara, P. (2021). Tourism specialization, economic growth, human development and transition economies: The case of Poland. Tourism Management, 82(May 2020). https://doi.org/10.1016/j.tourman.2020.104181
Dangelico, R. M., & Pontrandolfo, P. (2015). Being “Green and Competitive”: The Impact of Environmental Actions and Collaborations on Firm Performance. Business Strategy and the Environment, 24(6), 413–430. https://doi.org/10.1002/bse.1828
Delgado-Verde, M., Amores-Salvadó, J., Martín-de Castro, G., & Emilio Navas-López, J. (2014). Erratum: Green intellectual capital and environmental product innovation: the mediating role of green social capital. Knowledge Management Research & Practice, 12(3), 350–350. https://doi.org/10.1057/kmrp.2014.8
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
Firmansyah, A., Qadri, R. A., Permatasari, P., Andriani, A. F., Elvira, S. F., & Maratno. (2024). Green Intellectual Capital and Corporate Environmental Performance: Does Environmental Management Accounting Matter? Journal of Accounting Research, Organization, and Economics, 7(3), 297–313. https://doi.org/10.3390/admsci14120311
García-Aquino, M. de los Á., Lagúnes-Hernández, A. del R., & García-Santillán, A. (2024). The Role of Housewives in the Management of Household Finances. TEM Journal, 13(3), 2012–2024. https://doi.org/10.18421/tem133-29
Guzman, G. M., Serna, M. del C. M., & Castro, Pinzón, S. Y. (2017). Entrepreneurial Orientation and Growth in Mexican Small Business. Journal of Management and Sustainability, 7(1), 94. https://doi.org/10.5539/jms.v7n1p94
Haddad, A., Hagain, F., Lefilef, A., Roucham, B., & Alkhalaf, M. A. (2024). Green Intellectual Capital: A Multidimensional Approach to Sustainable Performance Waste Recycling Management in Algeria. Futurity Economics&Law, 4(3), 99–117. https://doi.org/10.57125/fel.2024.09.25.07
Huang, J. W., & Li, Y. H. (2017). Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity. Journal of Business Ethics, 145(2), 309–324. https://doi.org/10.1007/s10551-015-2903-y
Hunafah, D. R., & Rachmawati, S. (2023). Pengaruh Modal Manusia Hijau, Modal Struktural Hijau, Modal Relasional Hijau Terhadap Kinerja Perusahaan Dengan Keunggulan Kompetitif Hijau Sebagai Variabel Moderasi. Jurnal Ekonomi Trisakti, 3(2), 3405–3414. https://doi.org/10.25105/jet.v3i2.18137
Husnaini, W., & Tjahjadi, B. (2021). Quality management, green innovation and firm value: Evidence from indonesia. International Journal of Energy Economics and Policy, 11(1), 255–262. https://doi.org/10.32479/ijeep.10282
Jahanshahi, A. A., Pitamber, B. K., & Nawaser, K. (2010). Issues and challenges for women entrepreneurs in global scene, with special reference to India. Australian Journal of Basic and Applied Sciences, 4(9), 4347–4356.
Khan, R. U., Salamzadeh, Y., Shah, S. Z. A., & Hussain, M. (2021). Factors affecting women entrepreneurs’ success: a study of small- and medium-sized enterprises in emerging market of Pakistan. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00145-9
Liu, D., Yu, X., Huang, M., Yang, S., Isa, S. M., & Hu, M. (2022). The Effects of Green Intellectual Capital on Green Innovation: A Green Supply Chain Integration Perspective. Frontiers in Psychology, 13(June), 1–14. https://doi.org/10.3389/fpsyg.2022.830716
Liu, H., & Lyu, C. (2022). Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China. Sustainability (Switzerland), 14(19). https://doi.org/10.3390/su141912516
Maimuna, Y., Limbong, D., Pracita, & Sriayu. (2022). Meningkatkan Keterlibatan Perempuan Dalam Pengembangan UMKM Berbasis Pengetahuan Khas Perempuan Kota Kendari. Jurnal Ekonomi, 27(3), 399–416. https://doi.org/10.24912/je.v27i3.1114
Makhija, M. (2003). Comparing the resource-based and market-based views of the firm: Empirical evidence from Czech privatization. Strategic Management Journal, 24(5), 433–451. https://doi.org/10.1002/smj.304
Mihalic, T. (2016). Sustainable-responsible tourism discourse - Towards “responsustable” tourism. Journal of Cleaner Production, 111(August), 461–470. https://doi.org/10.1016/j.jclepro.2014.12.062
Mohd, T. A. M. T., Yunus, R. M., Hairi, F., Hairi, N. N., & Choo, W. Y. (2019). Social support and depression among community dwelling older adults in Asia: A systematic review. BMJ Open, 9(7). https://doi.org/10.1136/bmjopen-2018-026667
Naciti, V. (2019). Corporate governance and board of directors: The effect of a board composition on firm sustainability performance. Journal of Cleaner Production, 237, 117727. https://doi.org/10.1016/j.jclepro.2019.117727
Parmar, P., Rathod, G. B., Rathod, S., & Goyal, R. (2014). Original Research Article Study of knowledge , attitude and practice of general population of Gandhinagar towards hypertension. International Journal of Current Microbiology and Applied Sciences, 3(8), 680–685.
Ratnawati, R., Rokhman, M. T. N., Agus, A., & Ningsih, T. (2024). Confirmatory Analysis as a Tool for Forming Financial Inclusion , Financial Well-being , and Business Sustainability of MSMEs in the East Java Handicraft Export Sector (Issue Bistic). Atlantis Press International BV. https://doi.org/10.2991/978-94-6463-576-8
Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory and Practice, 33(3), 761–787. https://doi.org/10.1111/j.1540-6520.2009.00308.x
Singh, S. K., Giudice, M. Del, Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting and Social Change, 150(October 2019), 119762. https://doi.org/10.1016/j.techfore.2019.119762
Vale, J., Miranda, R., Azevedo, G., & Tavares, M. C. (2022). The Impact of Sustainable Intellectual Capital on Sustainable Performance: A Case Study. Sustainability (Switzerland), 14(8), 1–17. https://doi.org/10.3390/su14084382
Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24(13), 1307–1314. https://doi.org/10.1002/smj.360
Wu, R., Zhang, J., Yu, Y., Jasimuddin, S. M., & Zhang, J. Z. (2023). The Impact of Value Cocreation on CSR Innovation and Economic Performance. Sustainability (Switzerland), 15(5), 1–22. https://doi.org/10.3390/su15054008
Yong, J. Y., Yusliza, M. Y., Ramayah, T., & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364–374. https://doi.org/10.1016/j.jclepro.2018.12.306
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, 119334. https://doi.org/10.1016/j.jclepro.2019.119334
Zahoor, N., & Gerged, A. M. (2021). Relational capital, environmental knowledge integration, and environmental performance of small and medium enterprises in emerging markets. Business Strategy and the Environment, 30(8), 3789–3803. https://doi.org/10.1002/bse.2840
Zalfa, A. N., & Novita, N. (2023). Green Intellectual Capital Terhadap Sustainable Performance. Jurnal Keuangan Dan Perbankan, 18(1), 25. https://doi.org/10.35384/jkp.v18i1.329
Published
2025-10-14
How to Cite
ROKHMAN, M Taufiq Noor; RATNAWATI, Ratnawati; YULIANA, Rachma.
IMPLEMENTATION OF SUSTAINABLE PERFORMANCE THROUGH THE GREEN RELATIONAL CAPITAL AND GREEN INNOVATION MODELS.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 11, n. 1, p. 195-204, oct. 2025.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3447>. Date accessed: 16 apr. 2026.
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Articles
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