Environmental Legitimacy Through Green Intellectual Capital: Accessing the Moderating Role of Digital Transformation

Although the importance of intangible assets has been widely recognized, few studies have discussed the increasingly important relationship between environmental legitimacy (EL) and corporate intellectual capital, especially green intellectual capital (GIC) in the context of green transformation. Drawing on the integration of institutional theory and resource-based view, this study aims to investigate the impact of GIC on EL and whether their relationship is moderated by the role of digital transformation (DT). This study was conducted on a sample of 270 manufacturing companies from China, which were tested by hierarchical regression analysis. Results show that all three dimensions of GIC (i.e., green human capital (GHC), green structural capital (GSC), and green relational capital (GRC)) are positively associated with EL. GRC is an important path for GHC and GSC to EL. Moreover, DT positively moderates the effect of each dimension of GIC on EL, and the mediating effect of GRC is found to be moderated by DT. This study identifies the positive impact of intangible assets, represented by GIC, on corporate legitimacy, enhancing our understanding of how intellectual capital improves legitimacy. Companies should pay attention to the accumulation of GIC, especially the maintenance of green relations with stakeholders, and use digital transformation wisely to gain legitimacy and enhance competitiveness.