This study demonstrates the impact of green and cultural capital on financial sustainability in SMEs, suggesting a shift from digital-only strategies.
Purpose -- This study develops and validates a novel 6-Go Digital Intellectual Capital (6G-DIC) model that extends traditional intellectual capital theory by incorporating digital, cultural, and green capital dimensions to enhance financial sustainability in small and medium enterprises through green innovation. Design/methodology/approach -- This research advances intellectual capital theory by developing a six-dimensional framework that extends traditional three-dimensional models. Using partial least squares structural equation modeling on 324 Indonesian SMEs, the study tests the expanded framework's impact on financial sustainability through green innovation mediation. Findings -- Contrary to digital transformation assumptions, green capital emerges as the strongest predictor of green innovation (β = 0.275), followed by cultural capital (β = 0.243), while digital capital shows moderate effects (β = 0.158). The model explains 77.2% of the variance in financial sustainability and 69.2% in green innovation, with green innovation mediating 21.46% to 28.72% of intellectual capital effects on financial outcomes. Research limitations/implications -- Geographic specificity to Indonesian SMEs limits generalizability. The unexpected hierarchy challenges digital primacy assumptions and suggests that intellectual capital effectiveness varies across institutional contexts. Practical implications -- SME managers should prioritize green capital and cultural capital development over digital-only approaches, though contextual adaptation is essential given the study's geographic limitations. Originality/value -- This research contributes to intellectual capital theory by demonstrating that expanded six-dimensional frameworks achieve superior explanatory power while revealing contextual sensitivity in resource value hierarchies that contradict universal digital transformation assumptions.
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Ningsi et al. (2025) studied this question.
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