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This study aims to investigate the intricate relationship between intellectual capital and environmental innovations among manufacturing medium and large firms in Uganda, utilizing the SmartPLS methodology.

This research adopts a cross-sectional and quantitative approach, collecting data through a questionnaire survey from a sample of manufacturing medium and large (ML) firms in Uganda. The collected data underwent analysis to identify patterns and relationships using the SmartPLS structural equation modeling (SEM) technique.

The findings highlight a distinct pattern: structural capital is the strongest predictor of environmental innovations, with human capital being the next most significant factor. However, the positive relationship with relational capital did not attain statistical significance, suggesting the need for further exploration into inter-firm relationships.

For managers, investing in robust organizational structures and human capital development programs can enhance firms’ capacity to drive eco-friendly initiatives, aligning with global sustainability agendas. Policymakers are encouraged to create an enabling environment that nurtures IC and incentivizes environmental innovation through supportive policies such as tax incentives and funding mechanisms for green technologies.

This study enriches the intellectual discourse on IC and environmental innovation by employing SmartPLS methodology to highlight the nuanced impact of its components, emphasizing the multifaceted nature of IC and its role in driving EI.

The purpose of this study is to investigate the pivotal role of environmental innovations in driving sustainability practices within medium and large manufacturing firms operating in Uganda.

Using a cross-sectional and quantitative methodology, data were collected through a questionnaire survey involving 208 manufacturing companies. The smart partial least squares path modelling technique was used for the analysis.

The analysis unveils significant and positive associations. Specifically, product innovation exhibits a robust and affirmative relationship with sustainability practices. Similarly, the correlation between process innovation and sustainability practices emerges as statistically significant. Moreover, the findings underscore the noteworthy and constructive predictive influence of environmental innovation on sustainability practices.

These empirical results present substantial implications for theoretical frameworks and practical applications. From a policy perspective, the findings emphasise the importance of incentivising eco product and eco process innovations as potential drivers of eco-friendly practices. On the managerial front, strategic resource allocation and the adoption of integrated environmental innovation strategies are advocated, with the ultimate goal of enhancing sustainable business approaches within Uganda’s manufacturing subsector.

To the best of the authors' knowledge, this study represents the inaugural attempt to investigate the role of environmental innovations in elucidating sustainability practices within a least developed country. Notably, while all dimensions demonstrate significance, it is noteworthy that product innovation emerges as the more substantial contributor to the promotion of sustainability practices.

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.

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.

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.

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.

This research advances knowledge of SP by revealing if all aspects of IC are significant for the SP of manufacturing enterprises in Uganda.