The Role of Green Intellectual Capital and Business Environmental Ethics on Company Performance and Green Competitive Advantage as Moderation

This study examines the impact of green competitive advantage on the performance of industrial enterprises by studying the correlation between green intellectual capital and environmental ethics. This research also explores the role of green competitive advantage as a moderator, so it is important to ensure that green intellectual capital can be optimally actualized into improved company performance, while bridging environmental ethical practices that are often seen as a cost burden into strategic values that generate competitive advantages. The main contribution of the study is the creation of a new element for evaluating corporate environmental ethics. The research employed a quantitative methodology utilizing AMOS to analyze data from 326 industrial firms listed on the Indonesian Stock Exchange. The results indicate that green intellectual capital and environmental ethics have a favorable impact on corporate performance. Moreover, green competitive advantage amplifies the positive effect of green intellectual capital on performance while reducing the relationship between environmental ethics and performance. The research advances theoretical comprehension by emphasizing the importance of the legality of compliance with environmental regulations in evaluating business ethics and clarifying the connection between legal adherence and ethical conduct within a corporation. It underscores the importance of corporate law as a crucial element affecting ethical standards inside the corporate milieu, which can enhance commercial performance.