Green intellectual capital and sustainable competitive advantage: unraveling role of environmental management accounting and green entrepreneurship orientation
| Date | 13 December 2024 |
| Pages | 104-129 |
| DOI | https://doi.org/10.1108/JIC-07-2024-0204 |
| Published date | 13 December 2024 |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & finance,Accounting/accountancy,Behavioural accounting |
| Author | Javier Martínez-Falcó,Eduardo Sánchez-García,Bartolomé Marco-Lajara,Patrocinio Zaragoza-Sáez |
Green intellectual capital and
sustainable competitive advantage:
unraveling role of environmental
management accounting and green
entrepreneurship orientation
Javier Mart
ınez-Falc
o
Department of Management, University of Alicante, Alicante, Spain and
Department of Geography and Environmental Studies, Stellenbosch University,
Stellenbosch, South Africa, and
Eduardo S
anchez-Garc
ıa, Bartolom
eMarco-Lajara and
Patrocinio Zaragoza-S
aez
Department of Management, University of Alicante, Alicante, Spain
Abstract
Purpose –This present study investigates how green intellectual capital (GIC) impacts sustainable competitive
advantage (SCA) in Spanish wineries, further exploring the mediating roles of environmental management
accounting (EMA) and green entrepreneurship orientation (GEO) in the primary GIC-SCA linkage. Moreover,
the wineries’ age, size and membership in a protected designation of origin (PDO) are introduced as control
variables to enhance the accuracy of the examined cause-effect associations.
Design/methodology/approach –This research, based on a theoretical framework developed by previous
academic studies, utilizes partial least squares structural equation modeling (PLS-SEM) to analyze data
collected from 207 Spanish wineries between September 2023 and February 2024.
Findings –The findings indicate that GIC positively impacts the SCA of Spanish wineries, with EMA and GEO
partially mediating this relationship.
Originality/value –This study stands out for its pioneering incursion into the joint analysis of EMA and GEO as
mediating factors in the GIC-SCA relationship, a perspective not previously examined in the academic literature
as well as for its contextualization in the wine business setting, thus tracing a novel path in the understanding of
environmental management and wineries’ intellectual capital.
Keywords Green intellectual capital, Sustainable competitive advantage,
Environmental management accounting, Green entrepreneurship orientation, Wine industry
Paper type Research paper
Introduction
In today’sbusiness context, adopting an environmental approach has become a crucial strategy
for companies seeking to gain a competitive advantage (Kantabutra and Ketprapakorn, 2020).
Growing concerns about climate change and pressure from consumers have prompted
companies to adopt more sustainable practices, thereby optimizing operational processes,
reducing costs and improving differentiation in a highly competitive marketplace (Camilleri
et al., 2023).
Environmental management is of utmost importance in the wine sector given its extreme
sensitivity to climatic conditions and environmental impacts. In this regard, according to a
report by the Intergovernmental Panel on Climate Change (IPCC), it is projected that
traditional wine regions could experience an average annual temperature increase of up to 28C
by 2050, which would negatively affect the quality and quantity of grape production (IPCC,
2019). Furthermore, wine production is intensive in the use of natural resources, since, among
other matters, it is estimated that approximately 870 liters of water are required to produce a
single 0.75-L bottle of wine (Water Footprint Network, 2020).
JIC
26,1
104
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 4 July 2024
Revised 7 October 2024
Accepted 22 November 2024
Journalof Intellectual Capital
Vol.26 No. 1, 2025
pp.104-129
©Emerald Publishing Limited
e-ISSN:1758-7468
p-ISSN:1469-1930
DOI10.1108/JIC-07-2024-0204
The implementation of effective environmental management allows wineries to mitigate
these impacts by adopting sustainable practices, such as optimizing water use and reducing
greenhouse gas emissions. In fact, the International Organization of Vine and Wine (OIV)
revealed that wineries that adopt environmental management practices can reduce their
operating costs by up to 20% and improve their energy efficiency by 15% (OIV, 2021). In
addition, these practices also increase the resilience of wineries to environmental threats,
ensuring the long-term sustainability of production, so adopting such an environmental
approach would minimize both environmental impacts and strengthen the economic viability
of wineries by reducing costs and increasing operational efficiency (Montalvo-Falc
on
et al., 2023).
In this context, Environmental Management Accounting (EMA) and Green
Entrepreneurship Orientation (GEO) play a key role in fostering a sustainable approach
within organizations. On the one hand, EMA, as a systematic practice, involves the
identification, measurement and management of environmental costs and benefits associated
with business activities, thus enabling more efficient and transparent management of resources
(Appannan et al., 2023). From a social perspective, EMA can strengthen corporate reputation
and build trust among stakeholders by demonstrating a tangible commitment to sustainability,
which can lead to increased consumer loyalty and improved relations with local communities
(Zandi and Lee, 2019). At the environmental front, EMA facilitates more effective waste
management, contributing directly to the reduction of the organization’senvironmental impact
(Gunarathne et al., 2021). On the other hand, GEO is defined as a company’s willingness to
lead in sustainable practices, implying the adoption of green technologies and the
implementation of proactive strategies that not only comply with environmental
regulations, but also seek to exceed market expectations in terms of sustainability (Ameer
and Khan, 2023). Socially, GEO can strengthen local job creation through the development of
green initiatives that demand skilled labor in areas such as sustainable technology and resource
management (Liu et al., 2022). In addition, it fosters the strengthening of local communities
through collaboration in environmental conservation projects and the promotion of
sustainability education (Habib et al., 2020). At the environmental level, GEO promotes the
reduction of the corporate carbon footprint through the adoption of renewable energy and the
implementation of cleaner production systems (Ye et al., 2022).
In turn, EMA and GEO are key to embedding sustainability into the organizational culture,
positively influencing the development of Green Intellectual Capital (GIC) (Jiao et al., 2023).
Thus, while EMA provides detailed and accurate data on the company’s environmental
performance, essential for fostering a culture of sustainability that promotes GIC, GEO
facilitates organizational learning and continuous improvement in sustainable practices,
providing a solid foundation for the development of GIC (Wu and Yu,2023). GIC consists of a
set of green intangibles that includes the technical knowledge, skills and sustainable practices
that employees acquire and apply within the organization (Marco-Lajara et al., 2023). This
intangible set is crucial in the wine industry, where knowledge of sustainable practices can
make a significant difference to product quality and reputation, given that, in a sector
dependent on natural conditions and subject to strict environmental regulations, GIC becomes
an invaluable strategic asset, allowing wineries to adapt quickly to changes in the environment
(Mart
ınez-Falc
oet al., 2024a). Likewise, both variables, EMA and GEO, can also contribute
significantly to Sustainable Competitive Advantage (SCA), this being the ability of a company
to maintain a leadership position in the market by implementing sustainable practices that are
difficult for competitors to replicate. Thus, in fostering a culture of sustainability and
developing the GIC, the EMA and GEO provide companies with the necessary tools to
continually innovate and improve operational efficiency.
This study examines the relationships between EMA, GIC, GEO, and SCA in Spanish
wineries. The research specifically seeks to determine whether EMA positively influences
SCA and GIC, if GIC mediates the relationship between EMA and SCA, whether GEO
positively impacts SCA and GIC, and if GIC mediates the relationship between GEO and
Journal of
Intellectual
Capital
105
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