ABSTRACT This study investigates whether green intellectual capital (GIC) enhances the impact of green innovation (GI) on corporate environmental disclosure (CED) within the unique institutional and developmental context of African frontier markets. It aims to explore the interaction between GI and GIC, particularly in resource‐constrained settings, and proposes that GIC acts as a performance amplifier, strengthening the efficacy of GI initiatives in achieving environmental outcomes. Using a balanced panel of 4312 firm‐year observations across nine African frontier countries, the study applies Fixed Effects Two‐Stage Least Squares (FE‐2SLS) to address endogeneity. The data was collected from annual reports and sustainability disclosures of listed companies. The findings reveal that both GI and GIC independently contribute to CED, but their interaction yields a significantly greater effect. This synergy suggests that green capabilities embedded in human resources, organizational routines, and stakeholder relations are critical enablers of sustainable innovation. The study confirms that firms with higher levels of GIC derive more environmental value from their innovative efforts.
Idorenyin J. Okon (Thu,) studied this question.