Exploring the link between sustainable performance and credit access: the moderating role of intellectual capital
| Date | 09 January 2025 |
| Pages | 205-228 |
| DOI | https://doi.org/10.1108/JIC-06-2024-0191 |
| Published date | 09 January 2025 |
| Author | Francesco Campanella,Luca Ferri,Luana Serino,Annamaria Zampella |
Exploring the link between
sustainable performance and
credit access: the moderating
role of intellectual capital
Francesco Campanella
Department of Economics, University of Campania Luigi Vanvitelli, Capua, Italy
Luca Ferri
Department of Economics, Management, Institutions,
University of Naples Federico II, Naples, Italy
Luana Serino
Department of Management and Economics, Pegaso Telematic University,
Naples, Italy, and
Annamaria Zampella
Department of Economics, Management, Institutions,
University of Naples Federico II, Naples, Italy
Abstract
Purpose –This paper aims to analyze the role of intellectual capital in the underexplored relationship between
sustainable performance and credit access among private firms in Italy, where over 90% of businesses are small
and medium enterprises. While D’Apolito et al. (2024) have investigated sustainability-linked bank financing
among Italian listed small and medium-sized enterprises, this study takes a different approach by focusing on
private firms and examining the influence of environmental, social and governance criteria on their credit
access. The research seeks to deepen the understanding of how sustainable practices impact financial outcomes
and access to funding for private enterprises.
Design/methodology/approach –To investigate the relationship between sustainable performance and credit
access as well as the moderating role of intellectual capital, this study employs an ordinary least squares
regression model. It utilizes an innovative measure of sustainable performance for private firms – the legality
rating issued by the Italian Competition Authority in 2022 – drawing on prior research to establish a robust
analytical framework.
Findings –The findings highlight the importance of incorporating environmental, social and governance criteria
into the credit evaluation process for private firms. They underscore the critical role of intellectual capital –
comprising human capital, structural capital and relational capital – as a moderating factor in the relationship
between sustainable performance and credit access.
Originality/value –To the best of our knowledge, this study is the first to examine the moderating role of
intellectual capital in the relationship between sustainable performance and credit access among Italian private
firms. While substantial research exists on environmental, social and governance performance in large listed
firms, there remains a notable gap concerning the sustainability criteria of private and unlisted entities. This
study addresses this gap by providing insights into the unique dynamics of sustainable performance and
financial access in the context of private enterprises.
Keywords Credit access, ESG, Intellectual capital, Legality rating, Sustainable performance
Paper type Research paper
1. Introduction
Since the 2008 financial crisis (Galindo-Mart
ınet al., 2021), the demand for a new and
sustainable economy has become increasingly significant. European Union (EU) policies have
placed considerable emphasis on fostering green economic growth (European
Commission, 2018).
According to the European Commission’s Sustainable Finance Action Plan, the financial
sector plays a pivotal role in facilitating the green transition by aligning the supply and demand
Journal of
Intellectual
Capital
205
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1469-1930.htm
Received 25 June 2024
Revised 6 November 2024
12 December 2024
Accepted 16 December 2024
Journalof Intellectual Capital
Vol.26 No. 1, 2025
pp.205-228
©Emerald Publishing Limited
e-ISSN:1758-7468
p-ISSN:1469-1930
DOI10.1108/JIC-06-2024-0191
for green capital. As a result, sustainable finance has risen to prominenceon the EU’s
legislative agenda for financial markets and the regulatory and supervisory frameworks of EU
and national banking authorities.
Over the past decade, firms have increasingly focused on enhancing corporate
sustainability to achieve social, environmental, governance, and financial objectives
(Zanellato and Tiron-Tudor, 2022). From a managerial perspective, numerous studies
emphasize the positive impact of environmental, social, and governance (ESG) criteria on
firms’ value and financial performance (Campanella et al., 2021;Cordazzo et al., 2020;Veltri
et al., 2020;Lins et al., 2017). From a financial perspective, scholars and practitioners
highlight the importance of integrating ESG objectives into credit scoring evaluations (Attig
et al., 2013;Birindelli et al., 2015), especially for private firms, as most researches have
focused on large or publicly listed firms (Bengo and Arena, 2019;Lagazio et al., 2021).
To the best of our knowledge, only a limited number of studies have explored the
relationship between sustainable performance and debt financing in private firms, yielding
mixed results (Bengo and Arena, 2019;Lagazio et al., 2021).
This study addresses a critical gap by focusing specifically on private Italian firms, as Italy
is predominantly characterized by small and medium-sized enterprises (SMEs). Moreover,
this setting has implemented various regulatory measures to promote corporate sustainability,
such as the National Recovery and Resilience Plan.
We propose intellectual capital as a moderating factor in the relationship between
sustainable performance and access to credit because it aids in identifying and managing risks
associated with sustainability initiatives, thereby making companies more attractive to lenders
(Orlitzky et al., 2003;Chen et al., 2004). Intellectual capital encompasses the knowledge,
experience, and skills within an organization that, when combined with physical and financial
capital, create value (Bontis, 1998;Bontis et al., 2000). The Organization for Economic Co-
operation and Development (OECD) further highlights the institutional role of intellectual
capital, linking it to innovation and emphasizing its contribution to knowledge-based
economies, where wealth creation is driven more by the generation and management of
knowledge than by traditional physical resources (OECD, 2009).
In the evolving landscape of “Industry 5.0,” which prioritizes collaborative interaction
between humans and machines, intellectual capital becomes even more crucial. It shapes how
firms leverage access to credit to enhance sustainable performance (Smuts and Van der
Merwe, 2022).
While traditional lending decisions have primarily relied on financial criteria, researchers
and practitioners have increasingly recognized the importance of integrating ESG concerns
into credit evaluations. Zeidan et al. (2015) were pioneers in introducing the concept of
sustainable credit scoring systems, a framework subsequently expanded upon by Weber et al.
(2014) and Roy and Shaw (2021,2022). However, existing research largely focuses on
measuring sustainability, particularly through sustainable credit scoring methodologies.
To the best of our knowledge, this is the first paper that examines the moderating role of
intellectual capital in the relationship between credit access and sustainable performance
among Italian private firms. The study by D’Apolito et al. (2024) is the only work to explore a
related topic, specifically analyzing Italian listed SMEs and the link between sustainability and
bank financing. However, our research differs by focusing on unlisted firms and incorporating
the role of intellectual capital as a key factor.
This paper seeks to address the identified gap by offering new insights into the relationship
between bank loan access and sustainability performance in private firms. Using the legality
rating issued by the Italian Competition Authority (ICA) (www.agcom.it) as a proxy for
sustainability performance, we demonstrate that intellectual capital—and its individual
components—enhances the relationship between sustainability criteria and credit evaluations.
The rest of the paper is structured as follows. Section 2 reviews the literature and describes
the research hypotheses. Section 3 describes the research design. Section 4 deals with the
results and Section 5 depicts the conclusions.
JIC
26,1
206
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