Intellectual capital and sustainability practices of manufacturing firms in Uganda

Abstract

Purpose The primary objective of this study is to investigate the association between the dimensions of intellectual capital (IC) and sustainability practices (SP) within the context of manufacturing medium and large (ML) firms in Uganda. The study aims to shed light on whether and how different dimensions of IC contribute to the adoption and implementation of SP by these firms. Design/methodology/approach This study utilized a cross-sectional and quantitative approach, collecting data through a questionnaire survey from a sample of manufacturing ML firms. The collected data underwent analysis to identify patterns and relationships using the SmartPLS structural equation modeling (SEM) technique. Findings The findings demonstrated that the three categories of IC (human, structural and relational capital) influence the SP of ML manufacturing enterprises in Uganda. This suggests that IC is a critical component of SP. Practical implications Manufacturing enterprises should use their IC to create strategies for sustainable solutions, such as creating new, ecologically and socially responsible products and services and improving current ones to lessen their environmental effect. Originality/value This research advances knowledge of SP by revealing if all aspects of IC are significant for the SP of manufacturing enterprises in Uganda.