The Inclusion of Intellectual Capital into the Green Board Committee to Enhance Firm Performance

Syed Quaid Ali Shah, Fong-Woon Lai, Muhammad Kashif Shad, Zdeňka Konečná, Feybi Ariani Goni, Abdoulmohammad Gholamzadeh Chofreh and Jiří Jaromír Klemeš
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Syed Quaid Ali Shah: Department of Management and Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Malaysia
Fong-Woon Lai: Department of Management and Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Malaysia
Muhammad Kashif Shad: Department of Management and Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Malaysia
Zdeňka Konečná: Department of Management, Faculty of Business and Management, Brno University of Technology—VUT Brno, 612 00 Brno, Czech Republic
Feybi Ariani Goni: Department of Management, Faculty of Business and Management, Brno University of Technology—VUT Brno, 612 00 Brno, Czech Republic
Abdoulmohammad Gholamzadeh Chofreh: Sustainable Process Integration Laboratory—SPIL, NETME Centre, Faculty of Mechanical Engineering, Brno University of Technology—VUT Brno, 616 69 Brno, Czech Republic
Jiří Jaromír Klemeš: Sustainable Process Integration Laboratory—SPIL, NETME Centre, Faculty of Mechanical Engineering, Brno University of Technology—VUT Brno, 616 69 Brno, Czech Republic

Sustainability, 2021, vol. 13, issue 19, 1-21

Abstract: The purpose of this study was to conceptualise a framework that reflects an intertwined relationship between the green board committee and firm performance. Agency and stakeholder theories hold a basic notion of supporting the relationship between the green board committee and firm performance. The moderating role of intellectual capital (IC) was introduced in the intertwined relationship between green board committees and firm performance based on a resource-based view theory. This study proposes a new measurement index, namely, the “green board committee index”, to measure the green practices of organisations. This index is comprised of four dimensions: strategy and policymaking, monitoring and control, sustainability, and risk management. The current study hypothesised a significant and positive relationship between the green board committee and firm performance. It was believed that the moderation effect of IC strengthens the relationship between the green board committee and firm performance. The data for this study were proposed to be measured through a content analysis of the company’s annual and embedded reports and a Thomson Reuters DataStream terminal. It adds to the body of knowledge by alluding to an integrated notion of green board committees and IC concerning firm performance. The mentioned conceptual framework sends signals to legislators, regulators, policymakers, and practitioners on the critical insights and actions of green board committees in setting strategies and objectives, addressing sustainability issues, forging a relationship with stakeholders, and increasing the firm’s value from the business operations.

Keywords: green governance; green board committee; stakeholder theory; sustainability; intellectual capital; shareholder value-added (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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