Proactive, Reactive, or It Does Not Matter? Effects of Green Intellectual Capital on Firm Innovativeness Through Diverse CSR Approaches

ABSTRACT This study evaluates the impact of green intellectual capital (GIC) on firm innovation along with the mediating role of corporate social responsibility (CSR) based on the natural resource‐based view (NRBV), dynamic capabilities, and stakeholder theories. Data were compiled through questionnaire‐based survey from 544 top managers of the production SMEs in Pakistan and analyzed through PLS–SEM to find results. The outcomes disclosed that GIC has positive significant relationship with firm innovation, proactive, and reactive CSR. The study also uncovered that proactive and reactive CSR mediate between GIC and firm innovation. The findings document interesting implications for theory and practice, and elucidate the policy makers to adopt GIC strategy in the light of proactive and reactive CSR to achieve firm innovation objectives. However, the results of this study are based on developing economy and insights from developed market can bring a more authentic and diverse shape of outcomes. Although, past research has widely evaluated GIC, CSR, and firm innovation, but this is a comprehensive study in the innovative theoretical route.