Economic Affairs

Green practices have been widely accepted and supported universally, particularly in today’s highly environmentally conscious era. Since the world was hit by the deadly Covid-19 virus, which spread rapidly through the unhygienic environment, going green or protecting the environment is becoming popular among industries. Tourism nowadays is no longer a conservative industry that merely provides tourism activities, and it is now also associated with sustainable practices. As widely known, intellectual capital (IC) is crucial in a firm, and efficiently utilizing it will improve its performance. Human Capital (HC), Structural Capital (SC), and Relational Capital (RC) are the three components of intellectual capital. HC is the knowledge and skills owned by the employees. SC is the supportive infrastructure, strategies and know-how that belongs to the organisation. RC is the relationship between the firm and its stakeholders. This study examines the relationship between Green Intellectual Capital (GIC) and the sustainable performance of hotels in Malaysia. GIC embeds the elements of green practices and environmental awareness knowledge. Survey instruments were distributed to the managers of hotels that applied green practices in Malaysia according to the trip advisor listing. 91 respondents participated in the survey. The study found that GIC has a significant positive relationship with sustainable performance. The result portrays that GIC is a significant business asset of hotels in Malaysia which enhances the performance of hotels in Malaysia. It was proven that GIC is not only crucial for the performance of manufacturing organizations, but the application of GIC is also a competitive advantage in servicing and hospitality industries like hotels and resorts.