Rapid industrialization has aggravated environmental issues in both developed and developing countries. This study examines how Corporate Social Responsibility (CSR) mediates the relation between the Green Intellectual Capital (green human, structural, and relational capital) and the Environmental Performance (EP) in the face of rising industrialization in the small and medium-sized enterprises (SMEs) in the Pakistani region.
Purposive sampling was used to collect data through 450 questionnaires of employees (supervisor, and manager of SMEs), of which 385 were returned and analyzed. Structural Equation Modeling (SEM) was used to test the relationships among GIC, CSR, and EP.
The three dimensions of GIC have a positive effect on EP. Besides, CSR influences EP positively as well. The findings indicate that GIC dimensions have a positive influence on CSR engagement, which mediates the connection between GIC and EP. The Natural Resource-Based View (NRBV) theory supports these findings.
The findings could be applied to improve the EP of Pakistani SMEs by incorporating them within the strategies and operations of their organizations. The study also recommends that investigations in this field should be conducted in the future and that a theoretical and practical framework should be established.
The present study is the first to examine the mediating role of CSR on the association between GIC dimensions and EP in SMEs in Pakistan.
