This study examines whether green intellectual capital enhances small and medium-sized enterprise reputation through environmental management accounting, addressing the imbalance between green investments and returns during China's manufacturing sector's low-carbon transition. It aims to position environmental management accounting as a mediator for reputational gains and sustainable financing.
Utilizing a dual-stage structural equation modeling-artificial neural network (SEM-ANN) approach, we analyzed longitudinal data from 442 Chinese manufacturing SMEs. Partial least squares-structural equation modeling (PLS-SEM) assessed linear relationships, while ANN captured nonlinear patterns, with tenfold cross-validation ensuring robustness. Industry factors were controlled, and validated scales were employed.
All dimensions of green intellectual capital significantly boost SME reputation. Environmental management accounting (EMA) partially mediates this relationship, with green relational capital showing the strongest indirect effect (ß = 0.120). ANN revealed green structural capital's latent predictive power. EMA emerged as the dominant factor in reputation building.
SMEs should prioritize environmental management accounting for transparency and cost savings, invest in green relational capital and align green intellectual capital with accounting systems. Policymakers should incentivize adoption through tax subsidies and green certifications, fostering environmental accountability and global sustainability.
This study integrates conservation of resources theory with circular economic principles, introduces the first SEM-ANN hybrid framework in environmental management accounting and establishes a validated “green governance-disclosure-financing” cycle.
