Does green intellectual capital matter for green innovation adoption? Evidence from the manufacturing SMEs of Pakistan

Purpose: In the era of knowledge economy, the significance of intellectual capital has been increasing globally. Similarly, recent studies have focused on the importance of green intellectual capital in mitigating environmental degradation. However, only a few studies have analysed green intellectual capital and its impacts in the specific case of Pakistan. Hence, this study aims to investigate the effects of green intellectual capital on green innovation adoption in Pakistan’s manufacturing small and medium-size enterprises (SMEs). Design/methodology/approach: We used a data sample of 235 SMEs, gathered from the four manufacturing sectors of Pakistan including: textile, chemical, pharmaceutical and steel and analysed using a multiple regression analysis approach. Findings: The empirical results of this research indicate that green human capital and green structural capital significantly increase green innovation adoption. However, it must be noted that green relational capital has a positive but insignificant impact on green innovation adoption in manufacturing SMEs in Pakistan. Originality/value: The findings and recommended policy measures of this study are important for the managers of manufacturing SMEs and policymakers to mitigate environmental destruction and achieve sustainable development through green intellectual capital.