The Effect of Green Intellectual Capital on Green Competitive Advantage in Sustainable City Management

Abstract

Resource-based view (RBV) is a valuable theoretical foundation in analyzing organizational strategic resources to achieve Green Competitive Advantage in green city management. The purpose of this study is to analyze the strategic resources of the Semarang municipal government and this public sector capability in achieving a green competitive advantage in the management of green city. The application of the green city concept aims to create a more sustainable and environmentally friendly environment, by optimizing the use of renewable energy and reducing emissions. The use of this renewable energy can also provide a more stable and secure energy source because it does not depend on the irregular supply of fossil fuels and is vulnerable to price fluctuations. The method used is by quantitative techniques through Structural Equation Modeling (SEM) with a number of 116 respondents in Semarang City municipal government was taken as the sample through purposive sampling technique. The findings through quantitative analysis shows that green intellectual capital, eco-innovation and transformational leadership factors have a significant effect on Green Competitive Advantage in the context of green city management. As a suggestion, it is advisable to enhance the capacity for sharing a common vision, facilitating communication among parties involved, implementing sustainable management practices, nurturing human resources, and employing a collaborative governance framework for the purpose of building a green city in Semarang, Indonesia.