Turning Green Into Gold: The Impact of Green Intellectual Capital on Performance in European Firms

ABSTRACT This study examines the impact of green intellectual capital (GIC)—green human, structural and relational capital—on business performance in European firms. Using Eurobarometer 498 data and Partial Least Squares Structural Equation Modelling (PLS‐SEM), results show that GIC explains 15.4% of the variance in business performance, with green structural capital as the most influential dimension and green human capital as the area with greatest improvement potential. Multigroup analysis indicates that firm size does not moderate this relationship, suggesting that both SMEs and large firms can equally benefit. Beyond empirical evidence, this study underscores GIC as a strategic asset for competitiveness and sustainability. Practical implications include strengthening internal systems, fostering external networks and promoting public policies that support green knowledge management. These findings highlight the need for targeted initiatives to accelerate the green transition and position GIC at the core of sustainable business strategies.