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Purpose

This study aims to explore the profound relationship between green intellectual capital (GIC) and firm performance, emphasizing the mediating role of business sustainability within food small and medium enterprises (SMEs) of Pakistan.

Design/methodology/approach

The study assessed manufacturing enterprises across industrial cities of Punjab using a descriptive cross-sectional survey design. The purposive sampling technique was implemented for non-probability sampling. In this research, the 287 respondents encompassed a diverse cadre of managers, non-managers and employees of food manufacturing enterprises, providing a multi-perspective insight into the role of GIC in firm performance.

Findings

The study revealed a strong correlation between GIC and firm performance. GIC significantly enhanced firm performance, with business sustainability acting as a mediator. It underscores its vital role in the environmental stewardship of manufacturing enterprises. The study contributes unique insights into how manufacturing enterprises’ managers and employees in Pakistan can leverage GIC and sustainability to anticipate and manage potential issues, build trust, bolster reputation and enhance value proposition in the sustainable market.

Originality/value

This research reinforces the importance of cultivating and capitalizing on GIC for bolstered performance while underscoring the essence of sustainable practices within the competitive landscape of Pakistani food manufacturing enterprises. It provides a novel perspective on GIC a robust tool for enhancing performance and environmental credentials.

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