Green Intellectual Capital and Competitive Advantage, and Sustainable MSMEs: Is Tri Hita Karana Important?
DOI:
https://doi.org/10.26740/jaj.v16n2.p323-341Keywords:
Competitive advantage; Green intellectual capital; MSMEs; Sustainable; Tri Hita KaranaAbstract
Research Background: Companies worldwide now face the challenge of not only generating profits but also ensuring sustainability in their business practices. Introduction / Objectives: The purpose of this study is to analyze the impact of green intellectual capital on competitive advantage with Tri Hita Karana as a moderator. Methods: The SEM-PLS analysis method was used. The sample of this study was fashion MSMEs operating in Bali. Results: This study found that green intellectual capital contributes significantly to competitive advantage. However, Tri Hita Karana only moderates the effect of green structural capital on competitive advantage. Conclusion: This finding suggests that local cultural values strengthen sustainable organizational infrastructure and systems in business practices. This finding emphasizes the importance of integrating local cultural values into the intellectual capital-based view theory. Corporate policies need to support sustainability to strengthen competitiveness.
References
Adusei, E., Demah, E., & Mensah, H. K. (2024). Does Going Intellectually Green Matter? Accentuating the Role of Eco-Innovation Speed and Quality in a Competitive Post-Covid 19 Emerging Market. International Journal of Innovation Science, 16(5), 910–931. https:// doi.org/10.1108/IJIS-01-2023-0019
Ahsan, M. J. (2024). Green Leadership and Innovation: Catalysts for Environmental Performance in Italian Manufacturing. Inter- national Journal of Organizational Analysis .https://doi.org/10.1108/IJOA-04-2024-4450
Almuaqel, I. A. (2024). Managing Knowledge to Enable Learning Individuals with Intellectual and Developmental Disabilities: The Missing Piece on Knowledge Management. Journal of Knowledge Management, 28(10), 2976–2996. https://doi.org/10.1108/JKM-11-2023-1122
Amores-Salvadó, J., Cruz-González, J., Delga- do-Verde, M., & González-Masip, J. (2021). Green Technological Distance and Environmental Strategies: The Moderating Role of Green Structural Capital. Journal of Inte- llectual Capital, 22(5), 938–963. https://doi. org/10.1108/JIC-06-2020-0217
Anser, M. K., Naeem, M., Ali, S., Huizhen, W., & Farooq, S. (2024). From Knowledge to Profit: Business Reputation as a Mediator in the Impact of Green Intellectual Capital on Business Performance. Journal of Intellectual Capital, 25(5/6), 1133-1153. https://doi. org/10.1108/jic-01-2024-0025
Arain, G. A., Bhatti, Z. A., Hameed, I., & Fang, Y.-H. (2020). Top-Down Knowledge Hiding and Innovative Work Behavior (IWB): A Three-Way Moderated-Mediation Analysis of Self-Efficacy and Local/Foreign Status. Journal of Knowledge Management, 24(2), 127–149. https://doi.org/10.1108/JKM-11-2018-0687
Ariyanto, D., Weni Andayani, G. A. P., & Dwija Pu- tri, I. G. A. M. A. (2020). Influence of Justice, Culture and Love of Money towards Ethical Perception on Tax Evasion with Gender as Moderating Variable. Journal of Money Laun- dering Control, 23(1), 245–266. https://doi. org/10.1108/JMLC-06-2019-0047
Asiaei, K., O’Connor, N. G., Barani, O., & Joshi, M. (2023). Green Intellectual Capital and Ambidextrous Green Innovation: The Impact on Environmental Performance. Business Strategy and the Environment, 32(1), 369-386. https://doi.org/10.1002/bse.3136
Ben, F., Li, Z., Sun, J., Wang, H., & Zhao, X. (2024). Ecological Product Value Accounting and Analysis Behavior. International Review of Financial Analysis, 94, 103273. https://doi.org/10.1016/j.irfa.2024.103273
Boso, R. K., Adusei, E., & Demah, E. (2023). How Does Green Intellectual Capital Affect Environmental Performance? Evidence from Manufacturing Firms in Ghana. Social Responsibility Journal, 19(7), 1178–1195. https://doi.org/10.1108/SRJ-12-2021- 0503
Cahyaningtyas, F., & Salleh, S. C. (2024). Dive in the “Soul” of Corporate Social Responsibility through the Philosophy of Tri Hita Ka- rana. Jurnal Ilmiah Akuntansi dan Bisnis, 19(1), 32-48. https://doi.org/10.24843/ JIAB.2024.v19.i01.p03
Capurro, R., Fiorentino, R., & Garzella, S. (2024). Putting Boundaries in the Middle of Business Model Innovation: A Framework to Face Megatrends in the Digital and Sustainable Landscape. Business Process Management Journal, 30(8), 49–70. https:// doi.org/10.1108/BPMJ-08-2023-0635
Escobar-Anel, M. (2022). Multivariate Risk Aversion Utility, Application to ESG Investments. The North American Journal of Economics and Finance, 63, 101790. https:// doi.org/10.1016/j.najef.2022.101790
Famiola, M., & Wulansari, A. (2020). SMEs’ Social and Environmental Initiatives in Indonesia: An Institutional and Resource-Based Analysis. Social Responsibility Journal, 16(1), 15–27. https://doi.org/10.1108/SRJ-05-2017-0095
Ghlichlee, B., Mohammadkhani, E., & Hatami, A. (2024). Knowledge-Enhancing HR Practices and Sustainable Competitive Advantage: The Mediating Role of Intellectual Capital in Knowledge-Based Firms. Journal of Intellec- tual Capital, 25(2/3), 275–296. https://doi. org/10.1108/JIC-05-2023-0120
Goca, G. P. A. W., Supartha, I. W. G., Rahyuda, A. G., & Surya, I. B. K. (2023). Tri Hita Karana And Organizational Competencies: Antecedents of Competitive Advantage Impacting Sustainability in Bali Tourism. Journal of Law and Sustainable Development, 11(12), e2142. https://doi.org/10.55908/sdgs.v1- 1i12.2142
Gordon, I. M., & Nazari, J. A. (2018). Review of SOX in the Business Ethics Literature. Managerial Auditing Journal, 33(5), 470–502. https://doi.org/10.1108/MAJ-08-2017- 1629
Gupta, A., Dwivedi, D. N., & Jain, A. (2022). Threshold Fine-Tuning Of Money Laundering Scenarios through Multi-Dimensional Optimization Techniques. Journal of Money Laundering Control, 25(1), 72–78. https:// doi.org/10.1108/JMLC-12-2020-0138
Hair, J. F., Risher, J. J., Sarstedt, M., & Ring- le, C. M. (2018). When to Use and How to Report the Results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi. org/10.1108/EBR-11-2018-0203
Hina, K., Khalique, M., Shaari, J. A. N., Mansor, S. A., Kashmeeri, S., & Yaacob, M. R. bin. (2024). Nexus between Green Intellectual Capital and the Sustainability Business Performance of Manufacturing SMEs in Malaysia. Journal of Intellectual Capital, 25(2/3), 233–252. https://doi.org/10.1108/JIC-11-2022-0226
Hoai, T. T., Minh, N. N., Van, H. V., & Nguyen, N. P. (2023). Accounting Going Green: The Move Toward Environmental Sustainability in Vietnamese Manufacturing Firms. Corporate Social Responsibility and Environmental Management, 30(4), 1928-1941. https:// doi.org/10.1002/csr.2464
Jirakraisiri, J., Badir, Y. F., & Frank, B. (2021). Translating Green Strategic Intent into Green Process Innovation Performance: The Role of Green Intellectual Capital. Journal of Intellectual Capital, 22(7), 43–67. https:// doi.org/10.1108/JIC-08-2020-0277
Khan, S., & Gupta, S. (2024). The Interplay of Sus- tainability, Corporate Green Accounting and Firm Financial Performance: A Meta-Analytical Investigation. Sustainability Accounting, Management and Policy Journal, 15(5), 1038-1066. https://doi.org/10.1108/sam-pj-01-2022-0016
Maama, H., & Appiah, K. O. (2019). Green Accounting Practices: Lesson from an Emerging Economy. Qualitative Research in Financial Markets, 11(4), 456-478. https://doi.org/10.1108/qrfm-02-2017-0013
Martín-de-Castro, G., Delgado-Verde, M., López- Sáez, P., & Navas-López, J. E. (2011). To- wards ‘An Intellectual Capital-Based View of the Firm’: Origins and Nature. Journal of Business Ethics, 98(4), 649–662. https:// doi.org/10.1007/s10551-010-0644-5
Meles, A., Salerno, D., Sampagnaro, G., Verdoli- va, V., & Zhang, J. (2023). The Influence of Green Innovation on Default Risk: Evidence from Europe. International Review of Economics & Finance, 84, 692-710. https://doi. org/10.1016/j.iref.2022.11.036
Putra, C. G. B., & Muliati, N. K. (2020). Spirit Kearifan Lokal Bali dalam Akuntabilitas Desa Adat. Jurnal Akuntansi Multiparadigma, 11(3), 561-580. https://doi.org/10.21776/ ub.jamal.2020.11.3.32
Rehman, S. U., Bresciani, S., Ashfaq, K., & Alam, G. M. (2022). Intellectual Capital, Knowledge Management and Competitive Advantage: A Resource Orchestration Perspective. Journal of Knowledge Management, 26(7), 1705–1731. https://doi.org/10.1108/JKM-06-2021-0453
Rey, A., Landi, G. C., Agliata, F., & Cardi, M. (2023). Managing the Tradition and Innovation Paradox of the Agribusiness Industry: the Impact of the Network on Operating, Financial and Social performance. Journal of Intellectual Capital, 24(6), 1447–1463. https://doi.org/10.1108/JIC-04-2023-0087
Rinaldi, L. (2019). Accounting for Sustainability Governance: The Enabling Role of Social and Environmental Accountability Research. Social and Environmental Accountability Journal, 39(1), 1–22. https://doi.org/10.1080/0 969160X.2019.1578675
Rodrigue, M., Diouf, D., & Gendron, Y. (2022). On the Use of Framing Strategies by the Big Four Accounting Firms: Bringing Sustainability Risks into the Mainstream. Accounting Forum, 47(3), 416–440. https://doi.org/ 10.1080/01559982.2022.2066403
Rodrigue, M., & Picard, C. (2023). Non-Accountants and Accounting: On the Emancipatory Mobilization of Accounting by Sustainability Managers. European Accounting Review, 32(5), 1217-1245. https://doi.org/10.1080/09638180.2022.2052921
Saadatyar, F. S., Poursalimi, M., Al-Tabbaa, O., & Iannotta, M. (2020). Workplace Spirituality as a Source for Competitive Advantage: An Empirical Study. International Journal of Organizational Analysis, 28(3), 655–676. https://doi.org/10.1108/IJOA-10-2019- 1915
Salehi, M., Ali Mirzaee, M., & Yazdani, M. (2017). Spiritual and Emotional Intelligences, Financial Performance, Tax Avoidance and Corporate Disclosure Quality in Iran. Inter- national Journal of Law and Management, 59(2), 237–256. https://doi.org/10.1108/ IJLMA-11-2015-0059
Tjahjadi, B., Soewarno, N., Karima, T. El, & Sutarsa, A. A. P. (2023). Business Strategy, Spiritual Capital and Environmental Sustainability Performance: Mediating Role of Environmental Management Process. Business Process Management Journal, 29(1), 77–99. https://doi.org/10.1108/BPMJ-11-2021-0718
Toscani, G. (2023). The Effects of the COVID-19 Pandemic for Artificial Intelligence Practitioners: the Decrease in Tacit Know- ledge Sharing. Journal of Knowledge Management, 27(7), 1871–1888. https://doi. org/10.1108/JKM-07-2022-0574
Tsai, K. H., & Chang, H. C. (2012). Corporate Sustainability Practices and Firm Performance: The Mediating Role of Green Intellectual Capital. Business Strategy and the Environment, 21(3), 183–194. https://doi. org/10.1002/bse.727
Ullah, S., Mehmood, T., & Ahmad, T. (2023). Green Intellectual Capital and Green HRM Enabling Organizations Go Green: Mediating Role of Green Innovation. Interna- tional Journal of Innovation Science, 15(2), 245–259. https://doi.org/10.1108/IJIS-12-2021-0222
Verma, R., Arya, V., Thomas, A., Bolognesi, E., & Mueller, J. (2023). Does Startup Culture in the Emerging Country Grow around Societal Sustainability? An Empirical Study through the Lens of Co-Creational Capital and Green Intellect. Journal of Intellectual Capital, 24(4), 1047–1074. https://doi. org/10.1108/JIC-07-2022-0162
Wang, Y., Goutte, S., Bouri, E., & Sokhanvar, A. (2024). Climate Risks and the Realized Higher-Order Moments of Financial Markets: Evidence from China. International Review of Economics & Finance, 93, 1064-1087. https://doi.org/10.1016/j.iref.2024.04.042
Warie, G. H., Bariso, E. U., & Huluka, A. T. (2024). An Assessment of Top Managers’ Commitment to Business Performance: A Case Study of the Coffee Processing Industry in Guji Zone, Ethiopia. International Journal of Quality & Reliability Management. https:// doi.org/10.1108/IJQRM-03-2023-0070
Wang, X., Lin, H., & Tian, M. (2019). Corporate Sustainability Performance of Chinese Firms: An Empirical Analysis from a Social Responsibility Perspective. Emerging Markets Finance and Trade, 56(9), 2027–2038. https://doi.org/10.1080/1540496X.2019.1608522
Wirawan, P., & Rosalina, P. D. (2024). Enhancing Cultural Heritage Tourism Through a Spiritual Knowledge: The Implementation of Tri Hita Karana in Taro Village Gianyar Bali. Jurnal Kajian Bali, 14(1), 215-233. https:// doi.org/10.24843/JKB.2024.v14.i01.p10
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Desak Nyoman Sri Werastuti, Anantawikrama Tungga Atmadja, I Made Pradana Adiputra
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Abstract views: 0
,
PDF Downloads: 0
