Impact of Intellectual Capital on Organizational Performance: Mediating Role of Green Supply Chain Management Practices

Abstract

The major purpose of this study was to look empirically at the missing mediating role of Green Supply Chain Management (GSCM) practices in the relationship between intellectual capital(IC) and organizational performance(OC). Using concept from the resource-based view (RBV) theory, in the complex context of Pakistan's construction sector, the integration of Green Supply Chain Management (GSCM) processes is not just a choice, but a must for attaining sustainable growth. The main objective of GSCM is to mitigate negative environmental impacts and improve operational effectiveness. For this, a sample of 327 employees was gathered from the managerial staff of the construction industries by using a nonprobability purposive sampling technique, as only respondents engaged in SCM and GSCM activities were contacted. The hypotheses were put to the test using Smart PLS-SEM version 4 via reliability, validity statistics, and mediation analysis using the Hayes and Preacher model. Overall, the results imply that intellectual capital is significantly contributing to improving OC. Also, results revealed the partially mediating role of GSCMP in the association between intellectual capital and organizational performance. This study also highlights the GSCMP approach for creating sustainable competitive advantage, which highlights various implications for prospective academicians and practitioners.