ANALYSIS OF THE INFLUENCE INTELLECTUAL CAPITAL ON COMPANY FINANCIAL PERFORMANCE THROUGH GREEN INNOVATION COMPANY STUDY LQ-45
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Abstract
Intellectual capital and green innovation are an important issue in the current era of technology and globalization. Companies are required to implement environmentally friendly technology in both business processes and marketed products. The company's business strategy to improve company performance through intellectual capital (resources-based view) and green Innovation must be implemented to achieve company sustainability. Data was collected from 45 companies registered as LQ-45 which are listed on the Indonesia Stock Exchange while participating in the public information disclosure program regarding environmental compliance (PROPER) during 2021-2022 based on the structural method equations modeling (SEM). The study results that intellectual capital has a positive and significant effect on the company's financial performance. intellectual capital has a negative and significant effect on green innovation. Meanwhile green innovation has a positive and significant effect on financial performance. Intellectual capital has a positive and significant effect on financial performance through green innovation. Value of intellectual capital influence on financial performance is directly greater than mediated by green innovation. These findings can help stakeholders (financial institutions, government, and society) and shareholders to map a green innovation position company commitment and to encourage implementation in an integrated with intellectuals’ capital (resources-based view) to increase company profits.
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