The Effect of Green Innovation on Firm Value Moderated by Intellectual Capital in Indonesian Basic Materials and Chemical Industry

Despite growing pressure on manufacturing industries to adopt sustainable practices, empirical evidence on whether green innovation translates into measurable firm value remains mixed, and the boundary conditions governing this relationship—particularly the moderating role of intellectual capital—are poorly understood in emerging market contexts. This study examines the impact of green innovation on firm value and the moderating role of intellectual capital in basic materials and chemicals manufacturing companies listed on the Indonesia Stock Exchange during 2019–2023. Using panel data from 165 observations across 33 companies, this research employs Ordinary Least Squares (OLS) and Generalized Least Squares (GLS) methods with moderated regression analysis. Green innovation is measured through content analysis of sustainability reports, while firm value is assessed using Tobin's Q and Price to Book Value (PBV). Results demonstrate that both green product innovation and green process innovation significantly enhance firm value, with green process innovation showing a stronger effect. Notably, intellectual capital significantly moderates the relationship between green product innovation and firm value, but not for green process innovation. These findings remain robust across alternative measurements and estimation methods. This study contributes to the literature by integrating Resource-Based View Theory and Stakeholder Theory, providing strategic insights for manufacturing companies to optimize green innovation implementation and intellectual capital development for sustainable value creation.