PERTANIKA JOURNAL OF SOCIAL SCIENCES AND HUMANITIES

The crucial role of intellectual capital (IC) and its broad implications are well documented in the academic literature, but it hasn't been entirely discovered yet how IC integrates into certain organisational control systems, including sustainable performance measurement systems (SPMS), when it comes to sustainability. To fill this gap, the purpose of this study is to investigate the linkages among IC dimensions, SPMS and sustainable organisational performance, from the ground of intellectual capital-based view approach. This study utilised structural equation modeling (SEM)particularly partial least squares (PLS) method to test the research framework and hypotheses based on data from 149 top-level decision-makers in Bangladesh’s readymade garment (RMG) companies. The cross-sectional SEM results have shown mixed findings for both direct and indirect effects and hence offer new insights to address the research gap for this study. In addition, the contradictory findings highlight the relevance of the mediating role of SPMS in the link between IC and sustainable organisational performance within the context of the study. However, this paper contributes new knowledge on the significance of the effective management operation (e.g., sustainable performance measurement systems) that enables explaining IC and its association with a sustainable organisational performance. Furthermore, this research also provides a practical contribution in the field of performance measurement systems through the inclusion of intellectual capital, which will enable top management to address stakeholder expectations, taking into consideration environmental, social and economic issues in the current business landscape.