DefinePK

Abstract

Globalization, rapid technological improvements, customer expectations, and global economic instability have forced firms to actively pursue new methods to survive in a competitive business environment. Nowadays, businesses are putting more emphasis on intangible assets than tangible ones to improve performance. The present study examines the impact of Green Intellectual Capital (GIC), measured through Green Intellectual Capital (GIC), Green Relational Capital (GRC) and Green (GSC), on bank performance (BP). Further, sustainable banking (SB) is modelled as a mediator between GIC and BP in the banking sector. Cross-sectional data was collected from 109 employees associated with the banking sector of Pakistan. Smart PLS 4 was used to conduct statistical analysis and estimate the relationships. The empirical findings reveal that all three dimensions of GIC have a significant and positive effect on BP. The study found only one significant mediating effect of SB on the relationship between GSC and BP. Therefore, the findings suggest that SB plays a crucial role in leveraging GSC to enhance BP. Banks should prioritise investing in green IT systems and sustainable infrastructure to improve their performance. Moreover, the study recommends that banks should explore other strategies to leverage GHC and GRC to achieve better performance.