Green Intellectual Capital and Institutional Pressures as Antecedents of Green Practices: Consequences for Environmental and Financial Performance in Italian Hotels

Abstract

In the contemporary landscape marked by heightened environmental awareness, businesses face escalating expectations to embrace environmental sustainability. While prior studies have explored several antecedents of green practices (GPs) implementation, a critical study gap exists in understanding the empirical impact of green intellectual capital (GIC) and institutional pressures (IPs), as well as the subsequent impact of these practices on environmental and financial performance. This study aims to empirically investigate the role of each pillar of GIC and IPs in influencing organizations to implement GPs, and to unlock the subsequent impact of these practices on environmental performance (EP) and financial performance (FP). Deploying intellectual capital-based view theory and institutional theory, and using primary survey data from 203 Italy-based hotels, Partial Least Square Structural Equation Modelling (PLS-SEM) analysis shows that all pillars of GIC and IPs except for green human capital positively impact GPs adoption. The study also shows a positive contribution of these practices in enhancing EP and FP. The study contributes to the literature on GIC management, institutionalization, and GPs management. It offers managerial insights for managers to implement GPs through the development of GIC for improving EP and FP. The study also provides useful implications for policymakers to formulate stringent environmental regulations, improve legal prosecution, and provide financial incentives for sustainable initiatives.