THE STRATEGIC ROLE OF GREEN INTELLECTUAL CAPITAL AND GREEN INFORMATION ACCOUNTING TO IMPROVE DECISION-MAKING QUALITY
DOI:
https://doi.org/10.18623/rvd.v22.n3.3622Keywords:
Decision-Making, Green Accounting, Green Human Capital, Green Relational Capital, Green Structural CapitalAbstract
This study examines the relationship between each dimension of green intellectual capital namely, green human capital, relational capital, and structural capital as well as green accounting information, and quality in decision-making. A simple random sampling technique was used to select a sample of 185 manufacturing companies in Bali Province, Indonesia for this study. Questionnaires were sent to CEOs of companies chosen as part of the data collection process. Data analysis using SEM-PLS with WarpPLS 8.0 software. All aspects of green intellectual capital have a positive and significant relationship with the quality of decision-making. Additionally, green accounting information also reveals a significant positive relationship with decision-making quality. The findings suggest that intangible green assets and relevant environmental information become a strategic component in enhancing managerial decisions, especially in supporting sustainability goals. This study contributes to extending the natural resource-based view into decision-making theory by uniquely integrating green intellectual capital and green accounting information into a unified framework to enhance organizational decision-making. These findings confirm the relevance of integrating green intellectual capital and green accounting information in decision-making process, providing a model that other companies and regions can adapt and utilize.
References
Ahmed, H., Nisar, Q. A., Khan, W., Patwary, A. K., & Zaman, S. (2023). Does green HRM really matter for sustainable performance? The role of environmental consciousness and green intellectual capital. Environmental Science and Pollution Research International, 30(54), 115882–115895. https://doi.org/10.1007/s11356-023-30644-z
Ahmed, W. Y., Al-Shammari, S. A. N., & Al-Anbagi, A. T. K. (2021). The role of green accounting information in improving the quality of accounting information. Studies of Applied Economics, 39(11), 1–10. https://doi.org/10.25115/eea.v39i11.5991
Aladwan, M. (2024). Sustainable accounting information and enhancement of quality for financial decision making. International Journal of Productivity and Quality Management, 43(4), 440–458. https://doi.org/10.1504/IJPQM.2024.143224
Ali, W., Wen, J., Hussain, H., Khan, N. A., Younas, M. W., & Jamil, I. (2021). Does green intellectual capital matter for green innovation adoption? Evidence from the manufacturing SMEs of Pakistan. Journal of Intellectual Capital, 22(5), 868–888. https://doi.org/10.1108/JIC-06-2020-0204
Alnaim, M., & Metwally, A. B. M. (2024). Green intellectual capital and corporate environmental performance: does environmental management accounting matter? Administrative Sciences, 14(12), 1–21. https://doi.org/10.3390/admsci14120311
Anser, M. K., Naeem, M., Ali, S., Huizhen, W., & Farooq, S. (2024). From knowledge to profit: business reputation as a mediator in the impact of green intellectual capital on business performance. Journal of Intellectual Capital, 25(5–5), 1133–1153. https://doi.org/10.1108/JIC-01-2024-0025
Ashokan, A., Jaganathan, S., Rajendran, S., & Dhairiyasamy, R. (2024). Analysis of environmental performance indicators for concrete block manufacturing: embodied energy, CO2 emissions, and water consumption. Environmental Science and Pollution Research, 31(6), 8842–8862. https://doi.org/10.1007/s11356-023-31786-w
Asiaei, K., Bontis, N., Alizadeh, R., & Yaghoubi, M. (2022). Green intellectual capital and environmental management accounting: natural resource orchestration in favor of environmental performance. Business Strategy and the Environment, 31(1), 1–18. https://doi.org/10.1002/bse.2875
Asiaei, K., Jusoh, R., Barani, O., & Asiaei, A. (2022). How does green intellectual capital boost performance? The mediating role of environmental performance measurement systems. Business Strategy and the Environment, 31(4), 1–20. https://doi.org/10.1002/bse.2971
Astuti, P. D., Chariri, A., & Rohman, A. (2019). Association between intellectual capital and competitive advantage: a case study on the hotel industry in Bali Province, Indonesia. Humanities & Social Sciences Reviews, 7(4), 440–449.
Astuti, P. D., Chariri, A., & Rohman, A. (2021). Tri hita karana’s philosophy and intellectual capital: evidence from the hotel industry in Indonesia. Montenegrin Journal of Economics, 17(3), 169–180.
Astuti, P. D., Datrini, L. K., & Chariri, A. (2023). An empirical investigation of the relationship between green intellectual capital and corporate sustainable development. Corporate & Business Strategy Review, 4(2), 48–58. https://doi.org/10.22495/cbsrvi2art5
Bombiak, E. (2022). Green intellectual capital as a support for corporate environmental development—Polish company experience. Energies, 15(9), 1–18. https://doi.org/10.3390/en15093004
BPS-Statistics of Bali Province. (2024). Bali Province in figures.
Brin, P., & Nehme, M. (2021). Sustainable development in emerging economy: using the analytical hierarchy process for corporate social responsibility decision making. Journal of Information Technology Management, 13(Special Issue), 159–174. https://doi.org/10.22059/JITM.2021.80744
Cao, G., Duan, Y., & Cadden, T. (2019). The link between information processing capability and competitive advantage mediated through decision-making effectiveness. International Journal of Information Management, 44(February), 121–131. https://doi.org/10.1016/j.ijinfomgt.2018.10.003
Chin, W. W. (1998). Commentary: issues and opinion on structural equation modeling. MIS Quarterly, 22(1), vii–xvi.
Chuang, S. P., & Huang, S. J. (2018). The effect of environmental corporate social responsibility on environmental performance and business competitiveness: the mediation of green information technology capital. Journal of Business Ethics, 150(4), 991–1009. https://doi.org/10.1007/s10551-016-3167-x
Chukka, H. G. R., Madem, S., & Konathala, S. K. (2024). Leveraging green accounting for sustainable development: improve financial performance in the green industry in India. In Building Climate Neutral Economies Through Digital Business and Green Skills (pp. 95–127). https://doi.org/10.4018/979-8-3693-5673-9.ch004
Cross, M. S., Oakes, L. E., Kretser, H. E., Bredehoft, R., Dey, P., Mahoney, A., Smith, N., Tator, I., & Wasseen, J. (2022). Tackling the science usability gap in a warming world: co-producing useable climate information for natural resource management. Environmental Management, 70(6), 881–895. https://doi.org/10.1007/s00267-022-01718-4
Dang, V. T., & Wang, J. (2022). Building competitive advantage for hospitality companies: the roles of green innovation strategic orientation and green intellectual capital. International Journal of Hospitality Management, 102, 103161. https://doi.org/10.1016/j.ijhm.2022.103161
DeSimone, S., D’Onza, G., & Sarens, G. (2021). Correlates of internal audit function involvement in sustainability audits. Journal of Management and Governance, 25(2), 561–591. https://doi.org/10.1007/s10997-020-09511-3
Dhar, B. K., Sarkar, S. M., & Ayittey, F. K. (2022). Impact of social responsibility disclosure between implementation of green accounting and sustainable development: a study on heavily polluting companies in Bangladesh. Corporate Social Responsibility and Environmental Management, 29(1), 71–78. https://doi.org/10.1002/csr.2174
Dutta, T. K., Raju, V., & Kassim, R. N. M. (2020). Green accounting in achieving higher corporate profitability and sustainability in ready made garment industry in Bangladesh: a conceptual analysis. International Journal of Innovation, Creativity and Change, 10(10), 178–187.
Dwianika, A., Purwanto, E., Suyoto, Y. T., & Pitaloka, E. (2024). Bibliometrics analysis of green accounting research. International Journal of Energy Economics and Policy, 14(1), 349–358. https://doi.org/10.32479/ijeep.15055
Egilmez, G., Kucukvar, M., & Tatari, O. (2013). Sustainability assessment of U.S. manufacturing sectors: an economic input output-based frontier approach. Journal of Cleaner Production, 53(15 August), 91–102. https://doi.org/10.1016/j.jclepro.2013.03.037
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, XVIII(1), 39–50. https://doi.org/10.1177/002224378101800104
Gharib, M., Alam, M. S., Hawaldar, I. T., Murshed, M., Khan, U., Alvarado, R., & Rehman, I. U. (2023). Roles of green intellectual capital facets on environmental sustainability in Oman. Economic Research-Ekonomska Istrazivanja, 36(3), 1–19. https://doi.org/10.1080/1331677X.2022.2149591
Giampaoli, D., Sgrò, F., Ciambotti, M., & Wright, P. (2025). Unleashing potential in SMEs: how intellectual capital fuels employee flexibility to reach strategic goals. Electronic Journal of Knowledge Management, 23(1), 67–82. https://doi.org/10.34190/ejkm.23.1.3635
Gonzalez, C. C., & Mendoza, K. H. (2021). Green accounting in Colombia: a case study of the mining sector. Environment, Development and Sustainability, 23(4), 6453–6465. https://doi.org/10.1007/s10668-020-00880-1
Hakeem, A. (2024). The mediating effects of entrepreneurial orientation between procedural rationality and strategic decision-making effectiveness. Academy of Strategic Management Journal, 23(1), 1–12. https://doi.org/10.1177/23197145231190537
Hart, S. L., & Dowell, G. (2011). A natural-resource-based view of the firm: fifteen years after. Journal of Management, 37(5), 1464–1479.
Hermawan, S., Alabdullah, T. T. Y., Sriyono, S., Sudarso, S., & Utomo, P. (2024). Green perspective on intellectual capital, corporate social responsibility, and competitive advantage: the role of firm performance. Environmental Economics, 15(1), 97–107. https://doi.org/10.21511/EE.15(1).2024.08
Jha, R., Mishra, S., & Sharma, A. (2024). The integration of green accounting and green human resource management for sustainable business practices. In Innovative Human Resource Management for SMEs (pp. 62–76). https://doi.org/10.4018/979-8-3693-0972-8.ch004
Jirakraisiri, J., Badir, Y. F., & Frank, B. (2021). Translating green strategic intent into green process innovation performance: the role of green intellectual capital. Journal of Intellectual Capital, 22(7), 43–67. https://doi.org/10.1108/JIC-08-2020-0277
Katariya, D., & Shukla, K. (2022). Sustainable economic production quantity (SEPQ) model for innventory having green technology investments-price sensitive demand with expiration dates. Economic Computation and Economic Cybernetics Studies and Research, 56(3), 135–152. https://doi.org/10.24818/18423264/56.3.22.09
Khalifa, M. (2024). Integrating sustainable decision-making frameworks in engineering: political implications for sustainable development. 2024 International Conference on Decision Aid Sciences and Applications, DASA 2024. https://doi.org/10.1109/DASA63652.2024.10836591
Khan, S., & Gupta, S. (2024a). Boosting the efficacy of green accounting for better firm performance: artificial intelligence and accounting quality as moderators. Meditari Accountancy Research, 33(2), 472–496. https://doi.org/10.1108/MEDAR-02-2024-2379
Khan, S., & Gupta, S. (2024b). The interplay of sustainability, corporate green accounting and firm financial performance: a meta-analytical investigation. Sustainability Accounting, Management and Policy Journal, 15(5), 1038–1066. https://doi.org/10.1108/SAMPJ-01-2022-0016
Kock, N. (2014). Advanced mediating effects tests, multi-group analyses, and measurement model assessments in PLS-based SEM. International Journal of E-Collaboration, 10(1), 1–13. https://doi.org/10.4018/ijec.2014010101
Komarova, A. S., & Makovetskij, M. Y. (2025). The position of industry 4.0 in making responsible decisions on ESG data. In Advances in Science, Technology and Innovation: Vol. Part F592 (pp. 39–43). https://doi.org/10.1007/978-3-031-83595-7_7
Kukurba, M., Waszkiewicz, A. E., Salwin, M., & Kraslawski, A. (2021). Co-Created Values in Crowdfunding for Sustainable Development of Enterprises. Sustainability, 13(16), 8767. https://doi.org/10.3390/su13168767
Le, T. M. H., Dang, L. A., & Le, T. H. (2020). Factors affecting the environmental management accounting implementation and the quality of environmental information for making decisions of fishery processing enterprises in Vietnam. Accounting, 6(4), 401–412. https://doi.org/10.5267/j.ac.2020.5.001
Liew, M. X., Xavier, J. A., & Tehseen, S. (2025). Navigating institutional barriers and harnessing opportunities for SDG implementation and integration in emerging economies: a path toward sustainable transformation. In Sustainable Development Goals Series: Vol. Part F993 (pp. 95–112). https://doi.org/10.1007/978-3-031-95103-9_7
Long, S., & Liao, Z. (2023). Green relational capital, integration capabilities and environmental innovation adoption: the moderating role of normative pressures. Sustainable Development, 31(3), 1570–1580. https://doi.org/10.1002/sd.2467
Lutfi, A., Al-Okaily, M., Alsyouf, A., & Alrawad, M. (2022). Evaluating the D&M IS success model in the context of accounting information system and sustainable decision making. Sustainability, 14(13), 1–17. https://doi.org/10.3390/su14138120
Mahlhal, A. H., Mohammed, M. A., & Jebur, A. K. (2025). Sustainable accounting information and its role in achieving the requirements of sustainable development and reducing costs. International Journal of Managerial and Financial Accounting, 17(5), 1–22. https://doi.org/10.1504/IJMFA.2025.148522
Marota, R. (2024). Uncovering the potential of sustainability: opportunities and challenges in applying green accounting for natural environmental sustainability in companies. Journal of Sustainability Science and Management, 19(8), 89–102. https://doi.org/10.46754/jssm.2024.08.007
Marulanda-Grisales, N., & Figueroa-Duarte, O. D. (2021). Classifying and studying environmental performance of manufacturing organizations evidence from Colombia. Journal of Cleaner Production, 279(10 January), 123845. https://doi.org/10.1016/j.jclepro.2020.123845
Miralles, J. A. L., García, R. L., Carnicero, J. M. P., & Martínez, F. J. R. (2020). Comparative study of heat pump system and biomass boiler system to a tertiary building using the Life Cycle Assessment (LCA). Renewable Energy, 152(June), 1439–1450. https://doi.org/10.1016/j.renene.2019.12.148
Nasir, N. A. M., Zainuddin, S. A., Nawi, N. C., Ibrahim, M. A. H., & Hasan, H. (2024). Critical insights into green accounting research: a bibliometric review. Studies in Systems, Decision and Control, 540, 609–620. https://doi.org/10.1007/978-3-031-62656-2_54
Nawangsari, L. C., Siswanti, I., Arijanto, A., & Wahyu, M. (2025). From knowledge to action: exploring green intellectual capital’s role in sustainable organizational performance for millennials. International Review of Management and Marketing, 15(1), 82–90. https://doi.org/10.32479/irmm.17546
Niemann, J., & Pisla, A. (2021). Product life cycle and services management. In Management of Mechanisms and Machine Science (Vol. 90, pp. 3–15). https://doi.org/10.1007/978-3-030-56449-0_1
Nikolakis, N., Catti, P., Chaloulos, A., Kamp, W. van de, Coy, M., & Alexopoulos, K. (2024). A methodology to assess circular economy strategies for sustainable manufacturing using process eco-efficiency. Journal of Cleaner Production, 445(15 March), 141289. https://doi.org/10.1016/j.jclepro.2024.141289
Nixon, R., Ma, Z., Zanotti, L., Khan, B., Birkenholtz, T., Lee, L., & Mian, I. (2022). Adaptation to social–ecological change in Northwestern Pakistan: household strategies and decision-making processes. Environmental Management, 69(5), 887–905. https://doi.org/10.1007/s00267-021-01583-7
Nunnally, J. C. (1978). Psychometric theory. McGraw-Hill.
Orbaningsih, D. (2023). Distribution financial performance of corporate as an impact of green accounting regulation. Journal of Distribution Science, 21(10), 77–84. https://doi.org/10.15722/jds.21.10.202310.77
Pramuka, B. A., Lestari, P., & Kaukab, M. E. (2023). The impact of disclosure of green accounting information on company performance on the Indonesia Stock Exchange. Contaduria y Administracion, 70(1), 148–168. https://doi.org/10.22201/fca.24488410e.2025.5077
Pumiviset, W., & Suttipun, M. (2024). Sustainability and strategic management accounting: evidence of green manufacturing in Thailand. Cogent Business and Management, 11(1), 1–16. https://doi.org/10.1080/23311975.2024.2302794
Qirem, I. A. E., Alshehadeh, A. R., Al-Khawaja, H. A., Elrefae, G. A., Jebril, I., & Alshehade, S. A. (2023). The impact of sustainability accounting on financial reporting quality: evidence from the pharmaceutical andcChemical sectors on the ASE. Journal of Logistics, Informatics and Service Science, 10(4), 62–71. https://doi.org/10.33168/JLISS.2023.0405
Ratmono, D., Mail, R., Cahyonowati, N., & Janie, D. N. A. (2024). The role of environmental performance in mediating the relationship between green accounting and corporate social responsibility. Environmental Economics, 15(1), 46–55. https://doi.org/10.21511/EE.15(1).2024.04
Rizavi, S. S., Amir, M., Siddique, M., Ali, K., & Umal Banin, S. (2025). Greening the path to firms’ success: unveiling “going green” strategies through natural resource orchestration for sustainable development. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/APJBA-02-2024-0073
Sánchez-García, E., Martínez-Falcó, J., Marco-Lajara, B., & Zakimova, A. (2025). Achieving environmentally responsible production through green managerial awareness, human resource management and employee behavior. Journal of Environmental Management, 373(December 2024), 1–13. https://doi.org/10.1016/j.jenvman.2024.123739
Sarwar, A., & Mustafa, A. (2023). Analysing the impact of green intellectual capital on environmental performance: the mediating role of green training and development. Technology Analysis and Strategic Management, 36(4), 1–14. https://doi.org/10.1080/09537325.2023.2209205
Song, W., Yu, H., & Xu, H. (2020). Effects of green human resource management and managerial environmental concern on green innovation. European Journal of Innovation Management, 24(3), 1460–1060. https://doi.org/10.1108/EJIM-11-2019-0315
Szaro, R. C., & Peterson, C. E. (2004). Evolving approaches toward science-based forest management. Forest Snow and Landscape Research, 78(1–2), 9–20.
Tufan, C., & Mert, I. S. (2023). The sequential effect of absorptive capacity, strategic agility, and sustainable competitive advantage on sustainable business performance of SMEs. Environmental Science and Pollution Research, 30(19), 55958–55973. https://doi.org/10.1007/s11356-023-26207-x
Usatenko, O., Pashkevych, M., Makurin, A., Smirnova, I., & Andrushko, R. (2025). Green accounting within the framework of corporate social responsibility and sustainable development. Grassroots Journal of Natural Resources, 8(1), 452–469. https://doi.org/10.33002/nr2581.6853.080118
Vukmirovic, V., Radonic, M., Radovanovic, O., & Milosavljevic, M. (2024). The effects of green intellectual capital on business performance: evidence from Serbia. Engineering Economics, 35(4), 472–486. https://doi.org/10.5755/j01.ee.35.4.31711
Waluyo, D. (2024a). Enhancing the performance of the manufacturing industry in 2024. Indonesia Go.Id-Portal Informasi Indonesia. https://indonesia.go.id/kategori/editorial/7924/enhancing-the-performance-of-the-manufacturing-industry-in-2024?lang=2
Waluyo, D. (2024b). Indonesia’s manufacturing resilience. Indonesia Go.Id-Portal Informasi Indonesia. https://indonesia.go.id/kategori/editorial/8770/indonesia-s-manufacturing-resilience?lang=2
Wang, C. H., & Juo, W. J. (2021). An environmental policy of green intellectual capital: green innovation strategy for performance sustainability. Business Strategy and the Environment, 30(7), 1–14. https://doi.org/10.1002/bse.2800
Wang, S., Zhang, X., Peng, J., & Tan, Y. (2024). Analyzing rational decision-making’s effect: empirical evidence from green supply chain. Managerial and Decision Economics, 45(3), 1573–1593. https://doi.org/10.1002/mde.4081
Wiredu, I., Agyemang, A. O., & Agbadzidah, S. Y. (2023). Does green accounting influences ecological sustainability? Evidence from a developing economy. Cogent Business and Management, 10(2), 1–25. https://doi.org/10.1080/23311975.2023.2240559
Wu, J., Jiang, H., & Li, Y. (2020). Research on the influence of internal factors on the quality of decision-making of MNCs. Advances in Intelligent Systems and Computing, 1142, 197–207. https://doi.org/10.1007/978-981-15-3588-8_24
Wu, R., Huo, B., Yu, Y., & Zhang, Z. (2022). Quality and green management for operational and environmental performance: relational capital in supply chain management. International Journal of Logistics Research and Applications, 25(4–5), 471–492. https://doi.org/10.1080/13675567.2020.1836138
Yamane, T. (1973). Statistics. An introductory analysis. Harper & Row, Publishers.
Yu, Y., Zhang, M., & Huo, B. (2020). The impact of relational capital on green supply chain management and financial performance. Production Planning and Control, 32(10), 861–874. https://doi.org/10.1080/09537287.2020.1774675
Yuncu, B. (2021). Bioremediation offers solutions for plant site contamination. Plant Engineering, 75(1), 24–27.
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Juhari, N. F., & 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
Zhai, W., & Zheng, H. (2025). Advanced CoCoSo technique for interval neutrosophic MAGDM and applications to quality evaluation in higher education management. International Journal of Decision Support System Technology, 17(1), 1–23. https://doi.org/10.4018/IJDSST.378431
Zhao, R., Mou, Y., & Yu, X. (2025). Analysis of the moderating effects of environmental regulations on green accounting information disclosure and financial performance of heavily polluting enterprises. Finance Research Letters, 72, 106493. https://doi.org/10.1016/j.frl.2024.106493
Downloads
Published
How to Cite
Issue
Section
License
I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.
I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.
Licença Creative Commons Attribution 3.0
