Exploring the nexus between intellectual capital, green innovation, sustainability and financial performance in creative industry MSMEs

Mithilesh Gidage and Shilpa Bhide

Journal of Enterprising Communities: People and Places in the Global Economy, 2025, vol. 19, issue 3, 457-484

Abstract: Purpose - This study investigates the impact of intellectual capital (IC) and green innovation (GI) on the financial performance (FP) of micro, small and medium enterprises (MSMEs) within creative industry in India. It also explores the mediating role of sustainability in these relationships, aiming to provide insights into how these factors contribute to business success and long-term sustainability within the creative sector. Design/methodology/approach - The research uses a quantitative methodology, analyzing data collected from creative MSMEs in India. Structural equation modeling (SEM) is used to test the hypotheses. Data was gathered through a structured questionnaire, ensuring a comprehensive analysis of the relationships among the constructs. Findings - The study reveals significant positive relationships between IC, GI, sustainability and FP in small and midsize creative businesses. IC and GI positively influence FP, with sustainability acting as a mediating factor. These findings illustrate that integrating sustainability into business strategies can amplify the benefits derived from IC and GI. Originality/value - This study advances the understanding of FP in creative MSMEs by examining the impact of IC and GI through the lens of sustainability. It introduces a framework that demonstrates how strategic resources and sustainable practices can be leveraged to achieve significant business outcomes. By providing insights into how sustainability initiatives enhance operational efficiency and profitability, this research offers a transformative approach to integrating sustainability into business strategy. The findings contribute to a generalizable model applicable across various sectors and regions, enriching the discourse on sustainable business practices.

Keywords: Micro; small and medium enterprises; Sustainability; Green innovation; Intellectual capital; Financial performance; Creative industry; India (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jecpps:jec-07-2024-0134

DOI: 10.1108/JEC-07-2024-0134

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