The role of competitive advantage in the relationship of green intellectual capital and sustainability performance of micro, small, and medium enterprises

This study scrutinizes competitive advantage as a mediator between the impact of green intellectual capital and sustainable performance. Micro, small, and medium enterprises (MSMEs) in Serangan Village, Denpasar City, were investigated with a sample of 123 MSMEs. Data were obtained employing the census method and then analyzed using Partial Least Square. The findings demonstrate that competitive advantage mediates the relationship between green relational capital and sustainability performance. However, it does not mediate the relationship between green human capital and green structural capital in terms of sustainability performance. The practical implication of this study is to develop a new framework for sustainability performance, highlighting environmental features and competitive advantage. The findings enhance the empirical evidence on the relationship between competitive advantage, green intellectual capital, and sustainable performance in MSMEs. This theory helps MSMEs develop competitive advantages to survive in business competition by considering environmental aspects.