Competitive Advantage Based on Green Intellectual Capital and Green Innovation

Abstract

In the limited use of natural resources, companies must use the intelligence of their human resources to produce environmentally friendly and energy-efficient products and avoid environmental damage for the company's survival. This study investigates how green intellectual capital and innovation affect the competitive advantage of companies operating in the primary consumer goods industry. The research question is whether companies need more natural resources that are limited in quantity and quality. To ensure business sustainability, increased green intellectual capital, expensive green innovation, and long-term research are needed. Primary consumer goods sector manufacturing companies listed on the Indonesian Stock Exchange (BEI) from 2018 to 2020 are the subject of the research used. With the purposive sampling method, 62 companies were used, thus obtaining 179 samples. Research data is obtained from annual reports, sustainability reports, or company websites on the Indonesian Stock Exchange (BEI). The data analysis model is track analysis. Studies show that green intellectual capital affects competitive advantages, while green innovation does not. Innovative green innovations must be well integrated into the corporate accounting system to ensure corporate survival. This will involve increased research and development to improve resource access by increasing R&D.