Impact of Green Intellectual Capital on Sustainable Green Banking: Moderating Role of Competitive Pressure

Abstract

Purpose: Adoption of an environmentalist perspective in banking operational base through social, economic, and environmentally sustainable activities becomes debatable for firm performance. The study aims to examine the impact of green intellectual capital on sustainable green banking and the moderating role of competitive pressure between them. Design/Methodology/Approach: The study surveyed by using self-administrative questionnaires from the bank employees of Rawalpindi and Islamabad. The data was collected from a sample size of 351 by using a random sampling technique. The measures of Green Intellectual Capital (GIC) are encompassed three elements as Green human capital (GHC), Green Structural Capital (GSC), and Green Relational Capital (GRC) comprising 18 items (Yusof, Omar, Zaman, & Samad, 2019) and moderator competitive pressure comprising of 7 items was adopted (Sophonthummapharn, 2009). Findings: The result of the study shows that green intellectual capital positively contributes toward achieving sustainable green banking. Competitive pressure moderates the said relationship in the context of the Pakistani banking sector. The finding of the study implies that banks in Pakistan implement green activities because of the competitive force of the external environment and achieve both sustainability in terms of environmental protection and less amount of carbon print. Therefore, banks have more focus on the use of green intellectual capital containing green human capital, green structural capital, and green relational capital than the banks achieve sustainable green banking. Implications/Originality/Value: The study provides a practical implementation for banks to move towards sustainable green banking.