Does Green Supply Chain Management and Green Intellectual Capital Influence Business Environmental Performance? The Moderating and Mediating Role of Governance Quality and Green Innovation Practices in an Emerging Economy

Abstract

ABSTRACT Environmental performance in business has become a core component of sustainable development, especially amid escalating climate challenges and ecological degradation. In Ghana, where industrial growth intersects with ecological fragility, a focused shift toward sustainable operational practices is increasingly critical. This paper investigates how green supply chain management (GSCM), green innovation practices (GIP), and green intellectual capital (GIC), moderated by governance quality (GOQ), influence business environmental performance (BEP) within the Ghanaian business sector. Grounded in the natural resource–based view (NRBV), the research offers a comprehensive model that captures the interplay between firm‐specific green capabilities and institutional frameworks. Using firm‐level data of 340 through a stratified random sampling technique and PLS‐SEM, the analysis reveals that GSCM significantly enhances BEP, particularly when synergized with GIP and a well‐developed GIC. Furthermore, strong governance mechanisms strengthen the positive impacts of these green practices by promoting institutional alignment and reinforcing environmental accountability. The findings underscore the importance for manufacturing firms in Ghana to cultivate sustainable and dynamic capabilities, invest in eco‐innovative strategies, and collaborate with governance institutions to meet sustainability targets effectively. This research enriches the discourse on environmental sustainability in emerging markets by contextualizing green performance drivers within sub‐Saharan Africa. It offers practical insights for corporate leaders and policymakers seeking to integrate sustainability into their business strategies. Ultimately, the study advocates for an integrated approach that combines competitiveness and ecological responsibility, paving the way for a more robust and ecologically conscious industrial sector in Ghana and similar economies.