Received: 28 February 2021
Revised: 14 March 2021
Accepted: 2 June 2021
DOI: 10.1002/kpm.1679
RESEARCH ARTICLE
Analyzing the role of knowledge management process to
enhance sustainable corporate performance: A mediation
moderation model
Zahid Hussain1 |
Ahmad Jusoh1
|
Khalid Jamil2
| Ahmad Ur Rehman3 |
Rana Faizan Gul2
1
Azman Hashim International Business School,
Universiti Teknologi, Skudai, Malaysia
2
School of Economics and Management, North
China Electric Power University, Beijing, China
3
Faisalabad Business School, National Textile
University, Faisalabad, Pakistan
Correspondence
Khalid Jamil, School of Economics and
Management, North China Electric Power
University, Beijing, China.
Email: khalidjamil29@yahoo.com
In the contemporary world, green innovation (GI) is the most discussed area to
enhance corporate sustainable performance (CSP) in manufacturing firms. The knowledge management (KM) process is also a key determinant of GI. Existing literature is
limited to KM and its impact on CSP. This study aims to determine the effect of the
KM process on sustainable corporate performance with the association of GI and
absorptive capacity. The survey method was used to collect data from 250 respondents of manufacturing firms in Pakistan. Structure equation modeling was applied to
collected data to obtain the results. Results show that all three dimensions of KM
have a significant impact on GI. Furthermore, GI also has a significant and positive
impact on sustainable corporate performance. Results further show that GI partially
mediates the relationship of the KM process and sustainable corporate performance,
and absorptive capacity moderates the relationship of the KM process and GI, but
there was no moderating effect of absorptive capacity between the relationship of
the KM process and CSP. The findings of this study will provide useful insights for
experts and manufacturers. It will help to understand the role of KM in their organizational behavior by being an eco-innovative ecological, economic, and social
organization.
1
|
I N T RO DU CT I O N
activities' viability (Del Giudice, Carayannis, & Maggioni, 2017) and
competitive advantage (Abbas, 2020). In designing and implementing
Today's competitive business climate has fostered an evolution of
innovative services and goods, KMP has been viewed as a critical compo-
organizational sustainability priorities. One of the biggest problems for
nent to handle the business method in the modern business environment
companies today is sustaining a strategic edge as environmental and eco-
(Mardani, Nikoosokhan, Moradi, & Doustar, 2018). This is why companies
nomic concerns come to the forefront. A diverse and organization with a
continue to implement new and successful KM methods to achieve
greater capacity emphasis on the adoption of the various strategic mix,
sustainability goals (Chen & Huang, 2009).
such as the knowledge management process (KMP), absorptive capacity
Creative ideas of human intellectual capital, which contribute to
(AC), is the aim of complex and absorptive organizations to achieve the
sustainable and productive economic growth, were developed in
core goals of attaining sustainable corporate results (Tseng, 2014).
modern economies. KMP allows organizations and further strengthens
The information has been described as a useful tool for corporate success
sustainable corporate performance (SCP) to establish the potential for
(Ooi, 2014). Knowledge in growing consumer satisfaction and
green innovation (GI; Rittle-Johnson, Schneider, & Star, 2015).
competition is being developed (Mothe, Nguyen-Thi, & Triguero, 2018),
KMP-derived GI helped create environmentally sustainable goods (Li,
exchanged, and used to achieve advantages (Kianto, Saenz, &
Yang, Cheng, Liu, & Shen, 2018). It is also evident that KMP would be
Aramburu, 2017). KMP helps companies respond to transitions and boost
a significant contributor to SCP. Organizations need to provide
Knowl Process Manag. 2021;1–16.
wileyonlinelibrary.com/journal/kpm
© 2021 John Wiley & Sons Ltd.
1
2
HUSSAIN ET AL.
adequate capital knowledge and analyze accessible input and decide
sustainable performance (CSP) (Tseng, 2014), there is significant moti-
on time (Malik et al., 2019). According to Global Innovation Index, in
vation to look into the effects of KMP, GI, and AC on an organization.
2017, Pakistan rank 119 out of 126 countries and 113 in 2018
The following paragraphs are a small review of relevant literature
(Global Innovation Index of 2018), with 207 million and an estimated
and are followed up by the hypothesized relationships between focal
GDP share of 14% in the manufacturing market statistics. Some of the
constructs. Then the research methods, analyses, and findings are
barriers to innovation and growth according to GII are administrative,
recorded and discussed. Finally, both the theoretical and managerial
human capital, facilities, and technology, along with business and
implications and the limitations and avenues for future research have
industry conditions. In the sense of Pakistan's vision of 2025, creative
been discussed.
value-added and one of the key national development strategies for
the next decade is to focus on one's own knowledge.
Pakistan's Ministry of Science and Technology has agreed to
2
LI T E RA T U R E RE V I E W
|
implement the National Industrial Innovation Survey. This study aims
to introduce innovation to the global market that updates industrial
2.1
|
Resource-based view
product creation and sustainability (Shujahat et al., 2019). These facts
encourage the writers to go in pursuit of more knowledge about KMP
In the strategic field of management, the resource-based view (RBV)
for SCP in a particular way with clear policy consequences and atten-
competencies analyses were created specifically to better identify
tion to the Pakistani manufacturing sector. In the study of organiza-
organizational weaknesses and strengths, after analyzing various stud-
tional success and knowledge-based creativity, previous researchers
ies focusing exclusively on the industry determinants of corporate
have focused on KMP (Darroch, 2005). While there was much discus-
performance (Barney, Ketchen Jr, & Wright, 2011). The physiogno-
sion in the manufacturing circles, very few studies examined KMP and
mies of companies in the development of sustainable competition
SCP (Gholami, Asli, Nazari-Shirkouhi, & Noruzy, 2013). The latest
have been further supplied by Barney (2009). These are essential,
research has shown that information absorption potential has a favor-
inimitable, unusual, and non-substitutive physiognomies. These tools
able connection to SCP (Shahzad, Qu, Zafar, Rehman, & Islam, 2020).
have significant implications for corporate plans and goals. These
The environmental sustainable development (SD) factor also positively
exceptional and unique services are available externally, helping to
impacted GI, Shahzad et al. (2020). Davenport and Kalakota (2019)
achieve success (Barney et al., 2011).
emphasized the favorable position of KM in the success of corporate
Environmentalists argued that following the RBV approach, that GI
SD. Still, the effects of AC and GI on the KMP-SCP partnership are
would help an organization become more profitable and efficient. Never-
not being determined. Furthermore, the value of applying restricted
theless, it is completely dependent on organizational attributes which are
literature to KMP, GI, and SD was stressed by Malik et al. (2019).
relevant and crucial (Sarkis, Zhu, & Lai, K.-h., 2011). According to
Thus, after the research questions alluded to below, the problems
Gavronski, Klassen, Vachon, and do Nascimento, L. F. M. (2011), produc-
listed above and the literature discrepancy propelled this analysis and
tion organization sources like top management and investment in environ-
tried to minimize the relationships' ambiguous condition (Lim, Tseng,
mental activities play an essential role. The RBV is now routinely used as a
Tan, & Bui, 2017). Not only should businesses rely on external sources
performance and contribution for financial managers to evaluate the con-
of information but they should also build an absorbing capacity to
nection between value creation and its performance. (T. Hansen, 2008).
acquire Knowledge (Matthyssens, Pauwels, & Vandenbempt, 2005).
The positioning of information as a driver of economic growth also con-
The “link” to external sources of information offers benefits in access
tributed to an extension of the RBV of the market. It was seen as a
to superficial knowledge, underlined by Fabrizio (2009). It would help
consequence of resource theory since information is seen as the most
if you had methods and processes to read, assimilate, move, and opti-
strategically valuable inimitable resource (Grant, 1997).
mize expertise to contribute to new corporate developments
The critical function is to integrate specific knowledge of individuals
(Daghfous, 2004). Companies' absorption potential will affect innova-
and representatives of organizations, which forms the basis for compa-
tion operation effectiveness (Cockburn & Henderson, 1998).
nies' abilities. Competitiveness is also subject to the company's capacity
This study provides several contributions to the literature in
to absorb relevant expertise to establish core competencies to enhance
general by addressing the research questions above. Second, by evalu-
improved outcomes (Pemberton & Stonehouse, 2000). These are the
ating the relationship between KMP and SCP, this research explores a
domain-specific knowledge sources that are usually hard to emulate
void in the academic literature using multivariate analysis by structural
because they are observed among experts. Researchers find that the
equation modeling. This study also helps businesses and directors link
recently established concept GI focused on green theory and resources
KM techniques into corporate events to encourage and develop
was targeted at helping companies create and encourage features of
GI. Secondly, this analysis illuminates an undetected definition of
environmental- friendly goods, so SCP is applied. The major sources of
SCP-enhanced GI and AC. Thirdly, this research focuses on an indus-
competitive advantage are the diverse knowledge and experience and
trially underdeveloped country like Pakistan that gained less literature
resources in the area. This helps to continuously improve sustainability
coverage (Giménez et al., 2017). Provided that three leading activities,
(Dangelico, Pujari, & Pontrandolfo, 2017).
such as environmental sustainability (ENS), economic sustainability
In the new knowledge-based economy, GI and SCP are focused on
(ECS), and social sustainability (SSP), have established corporate
KMP. The right approach. In today's dynamic world, businesses need
3
HUSSAIN ET AL.
particular and creative expertise for the global enhancements to their cur-
concepts were created for different market sectors (Franceschini,
rent goods with continuous and fast shifts in consumers' and players'
Faria, & Jurowetzki, 2016; Schiederig, Tietze, & Herstatt, 2012). There
demands and build an environmentally sustainable product (Xie, Huang,
is a need to understand the difference between some of these con-
Chen, Zhang, & Wu, 2019). In terms of strategy and organization, the goal
cepts. Previous studies found that sustainable engineering, eco-inno-
of KMP is to leverage the organization's inside expertise to deliver com-
vation, environmental innovation, and GI can be substituted. The
munity benefits and increase efficiency (Syed-Ikhsan & Rowland, 2004).
social and eco aspects of the ecological invention are combined. Eco-
Organizational competence, the generator of creativity, is rendered possi-
innovation, however, discusses environmental and economic prob-
ble by providing means of acquisition, dissemination, and effective use of
lems, according to Franceschini et al. (2016). In comparison, the social
information (Darroch, 2005). After popular goals, these three facets of
and moral aspects of sustainable innovation are adopted, and the goal
KMP, including the acquisition of information (KA), distribution of knowl-
of management and competition is well established. Chen (2008) pro-
edge (Kirchner & Akdere, 2017), and implementation of knowledge (KAP),
posed that renewable processes and green goods could be called eco-
were taken into account strategically valuable assets for enhanced GI and
innovation. Chen (2008) described the GI as “hardware or software
SCP. Taking into account the evolving complexities of the market world
advancement in association with green processes and products,
of today, KA is a crucial aspect for GI where companies learn new infor-
including advanced technology involved in saving energy, avoidance
mation through encounters with various stakeholders so that the enter-
of emissions, composting, green products development, organizational
prise progresses continuously, having a more in-depth knowledge of the
environment management. Innovative application at all levels”
needs of consumers (Shahzad et al., 2020; Yang, 2010). Furthermore,
(Cancino, La Paz, Ramaprasad, & Syn, 2018). GI's main priorities are
workers must regularly engage in the spread of awareness to achieve
technical change, environmental emissions control, recycling, green
excellence (Yang, 2010).
goods design, and ecological management. GI is essential to maximize
It is appropriate that organizations that acquire new knowledge
value, sustainability, and success for organizations. The expected
and apply them in enhancing their “finished” product be recognized
development of new concepts, products, services, procedures, or
for their outstanding work (Darroch, 2003). Knowledge-driven organi-
administration systems for managing environmental problems is cru-
zations help to understand and act upon problems comprehensively.
cial to SD (Diba & Xie, 2019). Stakeholders' strain, rivalry, and cus-
Considering the environmentalist and social behavior scientists, dan-
tomer demand are among the factors which affect GI (Dangelico &
gerous products do not cause climate change (Lin, Li, Wu, Liang, &
Vocalelli, 2017). The GI assessment and its facets are seen as indis-
Yang, 2019). A KMP captures the concept that higher-performing and
pensable factors of company survival. Today GI is not only an effec-
agile organizations are more capable and competent in manufacturing
tive weapon for competitive advantage but also a necessary
green and sustainable products. And many people know that the
precondition for legitimacy. In short, “innovation” is tending to
Kyoto protocol of the intergovernmental panel on climate change was
strengthen the competitive advantage of innovative goods, materials,
never put into practice. These studies indicate that the Kyoto protocol
processes,
has been much more effective than the Kyoto model.
Innovation” (Saunila, Ukko, & Rantala, 2018), with an emphasis on
administrations,
and
authoritative
systems
“Green
environmental perspective, do the same.
2.2
|
Sustainable corporate performance
The industrial industry accounts for about 24% of global CO2 emis-
2.4
|
Absorptive capacity
sions. Organizations that have taken care to boost environmental sustainability would also, in effect, enhance ECS (Shahzad et al., 2020).
This research reflects how absorptive capacity is linked to the
Thus, SCP can be interpreted as a development integrated by environ-
performance of innovation. Cohen and Levinthal (1990) concluded
mental, economic, and social aspects, they say. The critical role of SCP
that absorptive capacity is essential to a company's innovation pro-
in hitting SD has been established in recent surveys, according to
cess. They described absorptive capacity specifically as a company's
recent surveys. The International News project later implemented
ability to recognize, assimilate, and implement the value of new, exter-
tripple bottom line strategy in its green approach for the International
nal information for trade ends. Since external data is a significant
News project. The study looked at the role of CSPs in developing
resource for business innovation, the researchers also consider
green technologies in the developing world. It found that they hurt
absorption to be one of the most critical determinants of the comp-
the environment, and the environment positively affected the econ-
any's ability to obtain, acquire, and use new knowledge in a produc-
omy. It also found that green technologies could positively impact
tive way to improve its innovation output (Kim & Kogut, 1996). As the
social and economic well-being and growth (Shujahat et al., 2019).
absorptive capacity has already been defined in terms of the information content (e.g., patents), it is not unexpected that several studies
have demonstrated substantial support for the theory that absorptive
2.3
|
Green innovation
capacity has a positive impact on innovation (Lane, Koka, &
Pathak, 2006). The authors describe absorptive capacity as a
Potential innovation guarantees a strategic advantage and environ-
sequence of corporate routines from which organizations obtain, inte-
mental advantages, and social well-being. Innovation-related core
grate, transform, and exploit external information from outside
4
HUSSAIN ET AL.
networks and establish a complex organizational capability (Zahra &
Delavari, Mehdivand, and Mihandost (2011) supported the prospect
George, 2002). External information's expanded availability does not
of KAP converting a company's expertise and providing consumers
mean that businesses can now rely on external knowledge flows
with added value by introducing new features and processes. Effec-
, 2009). In reality, the only thing that can
(Escribano, Fosfuri, & Tribo
tive KAP helps companies to manufacture sustainable goods via crea-
effectively internalize it is mere exposure to external information.
tive solutions technologies for manufacturing processing. Some more
The company's absorbing capabilities support corporate learning
recent research indicates that KM behaviors have a beneficial impact
and research and development programs (Chen, Lin, & Chang, 2009).
on the GI (Abbas, 2020). The analysis is beginning to understand the
By
importance of literature on KM's potential to support achieve GI. This
absorbing
capacities,
businesses
can
learn
from
inter-
organizational partners and increase their expertise and ability to
is the reasoning behind the following suggested hypothesis:
assimilate, leverage potential external knowledge and information,
and ultimately boost their success in innovation (Schilling, 1998).
H1. Knowledge management process has a significant impact on
green organizational innovation
Companies that are subject to the same amount of superficial details
do not gain similarly, since they vary from one another in their capacity to detect and manipulate this knowledge (Giuliani & Bell, 2005). It
is only when additional information from external networks can be
2.5.2
|
Knowledge acquisition
obtained, assimilated, converted, and ultimately utilized that the
authors say absorptive ability impacts innovation. Otherwise, an orga-
The concept of learning means understanding and achieving new skills
nization that exists in a vacuum would not benefit from absorption
necessary
(Escribano et al., 2009). Thus by observing its moderating impact on
Salama, 2018). Employees generally gain further information from
the effect of outside information on innovation efficiency, the isola-
internal networks, such as peers and teammates. KAP gathers or col-
tion of absorption capacity's function can be achieved. More absorb-
lects additional information from multiple reliable sources to help
ing businesses can benefit more from the implicit, vague, and nuanced
workers solve company problems and enhance individuals' efficiency
application of external information.
and productivity (Mothe et al., 2018). The KA–GI collaboration pro-
for
productive
organizational
processes
(Attia
&
duced mixed findings in developed countries from the previous literasan, 2019). Several researchers have found an
ture (Abbas & Sag
2.5 | Research model and hypotheses
development
interesting positive connection between KA and innovation from various stakeholders and external markets (Abbas, 2020). While some
researchers have confirmed that KA and its performance have a nega-
2.5.1 | Knowledge management process and green
innovation
tive or unrelated correlation, these researchers have indicated that
research and investing in the growth of investment may lead to new
ideas that lead to improved overall innovative results. KA was reg-
KMP is a coordinated and premeditated strategy for use of an organi-
arded as being crucial in the realm of capacity building, innovative
zation's expertise to deliver public resources and increase the effi-
actions, and gradual performance growth, according to Darroch (2005).
ciency of the results (Syed-Ikhsan & Rowland, 2004). “Knowledge is
Also, Zhang, Fang, Wei, and Chen (2010) research of German compa-
an intangible asset,” according to Lim et al. (2017); it is a means of
nies indicated that the information acquired by stakeholders' collabo-
competitiveness that is impossible to imitate companies and individ-
rators could affect the organizational KAP process, which enhances
uals. There are multiple elements of KMP, one of which is the method
the organizational output creativity. Tseng (2014) explored the corre-
of defining, collecting, and disseminating business knowledge services
lation between KA and corporate results. Tseng (2014) found that KA
(Darroch, 2005). It is a basic strategy for preserving and improving
has a significant positive impact on company efficiency. From the lit-
gastrointestinal health when implementing innovative methods for
erature, how information acquisition could help achieve GI is evident
sustainable outcomes (Lim et al., 2017). Companies should use already
to professionals and researchers worldwide. As a consequence, the
gained
following hypothesis is postulated:
expertise
to
boost
creativity
and
efficiency
(Kianto
et al., 2017). When management invests in green and natural capital
for growth, KMP, and GI's link emerges innovation using workers'
H1a. Knowledge acquisition has a significant impact on organizational green innovation
skills and experience. With regards to this specific definition, organizational learning is committed to combining technical and KM techniques to achieve operating objectives (Davenport & Kalakota, 2019).
Recent research has shown that KA is necessary for CSP achieve-
2.5.3
|
Knowledge dissemination
ment (Shahzad et al., 2020). Lin et al. (2019) stressed that information
sharing
enhances
business
knowledge
tools,
contributing
to
KD receives, distributes, and conveys knowledge between workers to
innovations, thereby affecting creative organizational capacities. Tacit
boost (Lee, Leong, Hew, & Ooi, 2013). It primarily has two things:
sharing of information also influences creativity (Ganguly, Talukdar, &
exchanging information and gathering knowledge, and sharing aims to
Chatterjee, 2019). Wong (2013) also indicated that sharing knowledge
provide knowledge, although collection relates to gaining information
has a significant effect on GI and innovation. Madhoushi, Sadati,
from workers (Attia & Salama, 2018). The approaches discussed here
5
HUSSAIN ET AL.
can be improved by face-to-face meetings, workshops, social networking, and partnerships. Immersive and realistic collaboration pro-
2.5.5 | Green innovation and sustainable corporate
performance
vides learning and knowledge-sharing opportunities. In different
studies, KD has proven to be a crucial element to enhance information
GI is one of the main ways that organizations try to reduce or remove
access and impact an innovation business. It improves operational
the harmful impacts on the natural world of their manufacturing and
processes, financial forecasts, collaboration with partners, and ulti-
production processes. GI is the progress of processes, goods, technol-
mately corporate sustainability goals (Abbas & Sa
gsan, 2019). While
ogy, and management systems. The method and product innovation
Darroch (2005), a further study (Monica Hu, Ou, Chiou, & Lin, 2012).
were isolated from GI by Xie et al. (2019). It improves or invents new
Taiwan found a positive correlation between information and com-
goods or procedures and eliminates the harmful consequences of
pany innovation, while the association between KD and market inno-
market practices. CSP is also a key success driver. Its information
vation and success was not present in New Zealand. Also,
capabilities (Lopes, Scavarda, Hofmeister, Thomé, & Vaccaro, 2017)
Wong (2013) argued that the exchange of expertise significantly
and new technology enable greater stability and improved efficiency
affected GI and design achievements in the Chinese electronics indus-
(Schaltegger, Lüdeke-Freund, & Hansen, 2012). The use of eco-
try. This research is focused on the debate and proposes that effec-
friendly and creative technology provides two advantages for indus-
tive organizations are among the first to develop their information-
try: the commercial advantage in the manufacture of eco-friendly
sharing actions, to produce better success results. The information
goods, economic benefits, and the competitive advantage (Todeschini,
stream across the organization increases knowledge dissemination
Cortimiglia, & de Medeiros, 2020). Advanced technologies are being
across divisions and the company's various hierarchical layers. As a
applied to minimize energy use, emissions control, waste recovery,
consequence, the following hypothesis is postulated:
and ecological management (Dangelico & Pujari, 2010). Past studies
have demonstrated that businesses must look closely at GIs to use
H1b. Knowledge dissemination has a significant impact on organizational
green innovation
environmentally sustainable solutions that reflect the practical use of
mez, Aznarcapital as environmental activities change (Galdeano-Go
Sanchez, & Pérez-Mesa, 2013). As a consequence, the following
hypothesis is postulated:
2.5.4
|
Knowledge application
H2. Green innovation has a significant impact on sustainable
corporate performance
According to Darroch (2005), KAP improves and makes knowledge
more competitive and meets consumer expectations. They were often
known as awareness responsiveness, a business that gathers details on
consumer demands and developments in the industry and rapidly
2.5.6
|
Sustainable environmental performance
responds to an issue or potential in process and product advancement
(Mothe et al., 2018). Improved consistency and shorter response time
Various organizations have different GI stimuli. Environmental sustain-
reflect a company's resilience, which inevitably influences customer sat-
ability and GI are also relatively recent; these new definitions are now
isfaction levels (Dove, 1999). Companies use already accumulated
gradually being explored. Environmental sustainability means improve-
expertise to boost GI (Kuo & Lee, 2011). It is clear from the analysis in
ments in manufacturing technology to eliminate undesirable environ-
the previous literature that the combination of KAP and GI has yielded
mental consequences. It is a leading strategy to improving GI satisfying
numerous effects. In this regard, KAP is a crucial element for organiza-
consumer needs (Albino, Balice, Dangelico, & Iacobone, 2012). compa-
tional innovation and has been defined by Darroch (2005). Abbas and
nies must consider the usage and use of green technology to allow opti-
Sagsan (2019) demonstrated in another study that KAP is very impor-
mal energy use while increasing the corporate environment's efficiency
tant for satisfactory progress in technology and efficiency. The scientist
and productivity. Furthermore, GI and environmental accountability are
found KAP's positive link to creative green results (Abbas &
the main drivers for environmentally friendly goods that contribute to
Sagsan, 2019). KAP is a critical tool for companies to support them-
environmentally friendly sustainable growth (Dangelico & Pujari, 2010).
selves in today's dynamic market climate. Madhoushi et al. (2011)
Earlier researchers proposed the possible supply of green goods to com-
expressed that KAP is designed to act as a catalyst for the transforma-
panies that incorporated sustainable environmental policies into their
tion of an organization's knowledge and experience into the develop-
activities,
ment of products and the design of processes. Additionally, provided
et al., 2012). An environmentally responsible and resource-efficient
the shareholder's interest, effective KAP is instrumental in enabling
enterprise will easily fulfill the objectives and criteria needed to prevent
companies to use innovative manufacturing technology to produce sus-
environmental degradation (Fernando, Jabbour, & Wah, 2019). Before
tainable goods. It is very clear from the above that KAP's connection to
the document, dedicated environmental and productive organizations
creativity is well developed, but it can also be seen how KAP is related
were described to reduce theological deterioration and improve GI effi-
to GI. As a consequence, the following hypothesis is postulated:
ciency (Lopes et al., 2017). In this period, environmental knowledge and
which
promote
environmental
sustainability
(Albino
inspiration are important for the GI. Olsson, Gericke, and Chang
H1c. Knowledge application has a significant impact on organizational
green innovation
Rundgren (2016) also indicated that environmental fortification organizations would promote GI. GI change operational processes and
6
HUSSAIN ET AL.
manufacturing technologies that reduce their detrimental environmental
et al. (2018) suggested that corporate internal learning sources
effects, reduce industrial waste, recycle, and eventually improve corpo-
improve GI systems. The profitability and well-being of workers of the
rate sustainability and reduce emissions (Fernando et al., 2019). GI also
company are influenced by environmental awareness and activities.
eliminates adverse environmental effects and the competitive advantage
This organization also promotes peer reinforcement (Delmas &
(Cheng, An, Li, Huang, & Zeng, 2017). As a consequence, the following
Pekovic, 2013). Prior documentation found in this scenario should be
hypothesis is postulated:
used to improve social resilience as an imperative element in the
growth of the human capital contribution and information stream
H2a. Green innovation has a significant impact on sustainable envi-
(Huang et al., 2016). Also, customers' tastes change, and to increase
environmental performance and process change, they aim to invest in
ronmental performance
eco-innovative and sustainable goods (Horbach, Oltra, & Belin, 2013).
However, consumer needs, intellectual resources, and businesses'
2.5.7
|
Sustainable economic performance
internal capacities in a broader sense influence social sustainability. As
a consequence, the following hypothesis is postulated:
According to Sheth, Sethia, and Srinivas (2011), ECS includes two different perspectives: financial efficiency and the other relates to
H2c. Green innovation has a significant impact on sustainable social
performance
social-economic well-being. This is the most thoroughly researched
SCP dimension in the aftermath of the global economic decline that
took account of the fear of insolvency, bankruptcy, desorption, and
other fiscal threats to companies and societies worldwide (Choi &
2.5.9
|
Mediating effect of green innovation
Ng, 2011). Eco-innovation in the process, eco-innovation in the commodity, eco-innovation management, and R&D investment in environ-
The key goal of this analysis is to see how KMP influences SCP and if
mental matters contribute to cost reduction (Hojnik & Ruzzier, 2016).
GI serves as a mediator in this relationship. KM is a critical technique
Cost-saving, electricity, and raw material utilization are defined by a
to improve organizational innovation efficiency and is also successful
supply-side factor that is important to the economy and industries'
in finding new CSP avenues (Lim et al., 2017). Certain researchers
efficiency (Triguero, Moreno-Mondéjar, & Davia, 2013). Also, GI and a
have proposed an indirect association between the KMP and innova-
healthy world see the most substantial decline in manufacturing costs
tion production, which can be found in the literature (Abbas &
(Hojnik & Ruzzier, 2016); but companies are not known to green com-
Sa
gsan, 2019). Darroch (2005) suggested that a distinctive type of
modity innovation. To satisfy legal standards for better economic effi-
creativity needs various capital and a different KM policy from now
ciency, GI forces organizations to decrease the manufacturing
on. The partnership between KMP and CSP occurs as the enterprise's
expense and emissions of different pollutants (Saunila et al., 2018).
management leads to implementing and using GI tools by the work-
Also, businesses invest in GI to improve efficiency by minimizing
force's expertise and skills (De Marchi & Grandinetti, 2013). Recent
industrial waste production (Cheng et al., 2017). Also, previous
research has shown that KA is most necessary for businesses to
researchers have established positive economic growth in this sense
become sustainable (Shahzad et al., 2020). Recent studies have also
(Przychodzen & Przychodzen, 2015). The literature review found that
shown that KM has a direct and beneficial impact on sustainable busi-
GI is important for corporate profitability, although green processes
san, 2019). Also, SD's environmental dimenness results (Abbas & Sag
innovation does not make sense (Li et al., 2018). This unknown condi-
sion has a favorable GI effect. More flexibility and increased
tion leads this analysis to explore the connection. As a consequence,
performance is given by modern technologies due to GI (Hansen &
the following hypothesis is postulated:
Schaltegger, 2016) and the KM process. The new innovative technology is used to decrease electricity usage, avoid emissions, recycle
H2b. Green innovation has a significant impact on sustainable economic performance
waste, and control the atmosphere (Y.-S. Chen, Lai, & Wen, 2006).
Operational productivity is influenced by the further implementation
of new and digital production technology, which further impacts corporate creativity (Gillani & Kutaula, 2018). Todeschini et al. (2020)
2.5.8
|
Sustainable social performance
concluded that KMP positively affects business innovation on company results. Many research works have extensively investigated the
Social sustainability is understood by businesses' economic productiv-
direct connection between innovation and organizational sustainabil-
ity, taking account of human growth, connectivity promotion, job pro-
ity (Hojnik & Ruzzier, 2016). This work has sought to establish a case
duction, equitable opportunity, well-being development, and security
that KMP specifically influences the SCP. It is likely that GI would
solutions. The internal expansion programs and management capabili-
have a more favorable impact on this relationship, and that it will
ties were planned to function significantly in GI (Huang, Yan, &
increase the efficacy of the KMP. As a consequence, the following
Wu, 2016). The improvements achieved in human resources by edu-
hypothesis is postulated:
cating and improving workers will support employees urgently and
transform their behavior and attitudes toward greener policies. Given
the
ongoing growth of
socioeconomic
development,
Saunila
H3. Knowledge management process has a significant impact on sustainable corporate performance.
7
HUSSAIN ET AL.
H4. Green innovation mediates the relationship between knowledge
management process and sustainable corporate performance.
other terms, the potential impact may result from the best success
of a company's innovation. The authors argue that absorptive ability
only affects creativity output because outside networks provide
external expertise that can be gained, assimilated, converted, and
2.5.10
|
Moderating effect of absorptive capacity
ultimately used. In other words, a businessman living in a vacuum
does not benefit from absorptive power (Escribano et al., 2009).
Absorptive potential improves the intensity and frequency of continu-
Therefore, the way to isolate the role of absorptive capacity is to
ous improvements, as these advances are focused mainly on the cur-
research its moderating effect on the effects of external information
rent base of knowledge businesses (Kim & Kogut, 1996). As capability
on innovation's success. The use of implicit, vague, and nuanced
in terms of knowledge content, that is, patents) has also been opera-
external data would be of more excellent value to organizations with
tional zed; this is not unexpected that much research has shown
more remarkable absorptive ability. The authors will assume absorp-
strong support for the hypothesis that absorptive capacity has a posi-
tive capacity to have a moderating effect between the characteris-
tive effect on innovation (Lane et al., 2006). For example, Zahra and
tics of information and the efficiency of innovation based on the
George (2002) conceive absorbent ability as a problematic resource
above debate on absorptive capacity and the empirical evidence
for generating and utilizing knowledge that increases the efficiency of
from prior literature.
innovation of an organization. According to them, absorptive power
includes acquisition capabilities, acculturation, conversion, and utiliza-
H5a. Absorptive capacity has a significant impact on organizational
green innovation.
tion. In their understanding of the concept, however, the concentrate
is on an individual company's internal capacities without considering
the external sources of knowledge from which information can be
H5b. Absorptive capacity moderates the relationship of the knowledge
acquired.
management
process
and
green
organizational
performance.
Hence, in the perspective of absorptive capacity, the authors
complement the view with the firm relational (Dyer & Singh, 1998)
set of attributes that drive the absorbent capacity impact of an orga-
H5c. Absorptive capacity has a significant impact on sustainable corporate performance.
nization in the context of outside networks. Taken together, these
qualities form the basis of a capability network that improves an
enterprise's ability to exchange knowledge to achieve the tremen-
H5b. Absorptive capacity moderates the relationship of the knowl-
dous success of innovation among inter-organizational partners.
edge
Based on Zahra and George (2002) study, the authors describe
performance.
management
process
and
sustainable
corporate
absorptive capacity as a collection of organizational routines from
which organizations obtain, assimilate, turn, and leverage external
routines. The superficial knowledge that more accessible does not
3
RESEARCH METHODOLOGY
|
involve that organizations can rely only on outside knowledge flows
(Escribano et al., 2009). Currently, simple awareness of external
3.1
|
Data collection and sample size
information is not necessary to effectively internalize it. A company's
absorptive ability is useful for corporate learning and R&D programs.
The sampling frame of the study includes all manufacturing units in
Companies can benefit from inter-organizational partners by absorp-
Pakistan having ISO 9001 and 14001 certifications. A well-structured
tive capacity, extend their expertise and capability base, develop
questionnaire was delivered to the general manager, production man-
their ability to assimilate, use potential external knowledge and intel-
agers, and the senior manager using the non-probability convenience
ligence, and ultimately improve their success in Innovation
sampling technique as they have decision power within their organiza-
(Schilling, 1998). Companies subject to the same amount of superfi-
tion. Besides, they also have better equipped with relevant information
cial information do not profit similarly since they vary in their willing-
and, at the same time, play an essential role in the dissemination of
ness to detect and utilize that knowledge (Giuliani & Bell, 2005). In
knowledge in various departments. The list of manufacturing units
FIGURE 1
Conceptual framework [Colour figure can be viewed at wileyonlinelibrary.com]
8
HUSSAIN ET AL.
obtained from the Securities and Exchange Commission of Pakistan
4.1
|
Measurement model
(SECP). By keeping in view, the sample size, the study used a well
reputed and globally implemented sample size formula focusing on a
Next, for assessing the reliability and validity of the measurement
finite population introduced by Krejcie and Morgan (1970). Furthermore,
model, we followed the recommendations of Hair Jr, Howard, and
to improving the generalizability of the findings, questionnaires were
Nitzl (2020), that confirmatory composite analysis for measuring
delivered to 380 targeted respondents in different manufacturing firms,
reflective constructs comprises a process that contains an assessment
from which 270 questionnaires were received back, and 20 question-
of the factor loadings, composite reliability, Average Variance
naires were found incomplete. After excluding them, 250 complete and
Extracted (AVE), discriminant validity, nomological validity, and predic-
usable questionnaires were considered the final sample size with a
tive validity (Hair Jr et al., 2020). Individual items reliabilities were
response rate of 66%.
measured through factor loadings of the items on the corresponding
Descriptive analysis shows that 30% of the respondents were
latent constructs, and only those items which hold factor loading
from the textile sector, 20% were from pharmaceutical, 10%
greater than or equal to 0.60 have been considered significant and
were from food processing, 15% were from chemicals, 10% were from
retained in the model as shown in the Table 1 (Hair Jr, Hult, Ringle, &
automotive, and 15% were from others.
Sarstedt, 2016). Furthermore, Cronbach's Alpha and composite reliability are also two more indicators that are generally used in PLSSEM to assess the measurement model's construct reliability. The
3.2
|
Questionnaire and measurements
findings of both indicators are for this study are greater than >0.7,
which is in the acceptable range and confirms the composite reliability
A comprehensive literature review was conducted to ascertain the
of the measurement model. For discriminant validity, we followed the
items observed regarding evaluating the relationship between latent
guidelines from Fornell and Larcker (1981). The square root of the
variables. The questionnaire was developed and comprised of 34 ques-
average variance extracted should be higher than the correlations'
tions in four parts by adopting items from different studies. On a
row and column values. As shown in Table 2, all the diagonal values
Likert scale from one to five on all item scales, respondents had to
exceeded the row and column values, confirming adequate discrimi-
assess their viewpoint.
nant validity (Figure 2).
KMP with three dimensions, that is, KA, KD, and KAP, were
assessed with 15 items taken from the studies of Darroch (2003) on a
five-point Likert scale of one (strongly disagree) to five (strongly
4.2
|
Discriminant validity
agree). Furthermore, GI was evaluated with four items taken from the
study Song and Yu (2018) on a five-point Likert scale of one (strongly
In short, the Fornell-Larcker technique demonstrates discriminant
disagree) to five (strongly agree). Absorptive capacity is measured
validity when the square root of the AVE enhances the relationships
with six items adapted from Jansen, Van Den Bosch, and
between the measure and every single other measure. To stimulate
Volberda (2005) on a five-point Likert scale. Also, CSP (environmental
the measurement of the model's discriminant validity, the AVE estima-
performance, social performance, and economic performance) was
tion of every construct is produced by utilizing the Smart-PLS algo-
evaluated on a five-point Likert scale of one (strongly disagree) to five
rithm, as appeared in Table 2.
(strongly agree) with nine items adopted from Bansal (2005).
The values that lie in off-diagonal are smaller than the
average variance's square root (highlighted on the diagonal),
supporting the scales' satisfactory discriminant validity. Conse-
4
|
DATA ANALYSIS AND RESULTS
quently, the outcome affirmed that the Fornell and Larcker (1981)
model is met.
For the sake of data analysis, we used SmartPLS 3.3.2 to assess
the measurement model and structural model following a two-step
approach (Ringle, Da Silva, & Bido, 2015). This research's motiva-
4.3
|
Structural model
tion was to predict sustainable corporate performance and its
determinants, including ENS, ECS, and social sustainability; as
We followed Hair Jr et al. (2020) recommendations for assessing
such, Partial Least Square (PLS) is the most suitable analytical tool
the structural model, including the multicollinearity, path coeffi-
(Ramayah, Cheah, Chuah, Ting, & Memon, 2018). We also had a
cients, significance, R2, effect sizes, and Q2. All the VIFs were
second-order measurement model, and this suggested that
below = five; thus, multicollinearity was not an issue. Next, the path
SmartPLS would be the tool to be used for the analysis. Since data
coefficients, t values, and effect sizes have been presented in
were collected using a single source, we followed Kock (2015) to
Table 2. Also, we have five endogenous constructs in our model
test the common method bias using the full collinearity method.
(see Figure 1). The R2 for OGI was 0.630 (Q2 = 0.371), CSP was
The test showed that all the Variance Inflation Factors (VIFs) were
0.484 (Q2 = 0.467), ECS was 0.235 (Q2 = 0.130), ENS was 0.089
lower than five; thus, we can conclude common method bias is not
(Q2 = 0.049), and SSP was 0.295 (Q2 = 0.208) which indicates that
a severe problem in our study.
63, 48.4, 23.5, 8.9, and 29.5% of the variance in the respective
9
HUSSAIN ET AL.
TABLE 1
Properties of measurement model
Variables
Dimensions
Items
Items loading
t Value
CA
CR
AVE
Knowledge management processes
Acquisition process
AC2
0.680***
14.026
0.848
0.884
0.606
AC3
0.701***
12.809
AC4
0.806***
25.399
AC5
0.829***
26.425
0.821
0.868
0.568
0.784
0.849
0.531
0.806
0.871
0.629
0.751
0.855
0.663
0.708
0.805
0.579
0.711
0.831
0.622
0.809
0.886
0.721
Application process
Dissemination process
Green innovation
Absorptive capacity
Corporate sustainable performance
Economic sustainability
Environment sustainability
Social sustainability
AC6
0.861***
47.275
APP1
0.746***
12.826
APP2
0.769***
21.702
APP3
0.809***
23.761
APP4
0.715***
11.025
APP5
0.727***
19.453
DIS1
0.795***
25.264
DIS2
0.667***
10.78
DIS3
0.757***
19.95
DIS5
0.737***
18.322
DIS6
0.681***
15.092
GI2
0.724***
16.576
GI3
0.848***
32.928
GI4
0.824***
24.954
GI6
0.771***
23.065
ABC1
0.839***
26.316
ABC2
0.811***
21.892
ABC3
0.791***
19.133
ECS1
0.779***
24.797
ECS3
0.726***
12.789
ECS4
0.777***
18.428
ENS1
0.738***
14.262
ENS3
0.823***
23.071
ENS4
0.802***
23.543
SS1
0.834***
26.082
SS2
0.876***
31.509
SS4
0.837***
31.032
Note: CA ≥ 0.7; CR ≥ 0.7; AVE ≥ 0.5; ***Significant threshold at p < .001.
TABLE 2
Discriminant validity
ABC
ABC
ACQ
APP
DIS
ECS
ENS
OGI
SSP
0.814
ACQ
0.552
0.779
APP
0.242
0.409
0.754
DIS
0.408
0.747
0.579
0.729
ECS
0.452
0.376
0.449
0.612
0.761
ENS
0.286
0.254
0.208
0.264
0.351
0.788
OGI
0.290
0.498
0.719
0.640
0.485
0.298
0.793
SSP
0.283
0.378
0.586
0.491
0.412
0.263
0.543
0.84
10
HUSSAIN ET AL.
FIGURE 2
Measurement model
constructs can be explained by their predictors. Q2 values greater
not significantly related with OGI (β = .078, p = .169) and CSP
than 0 for all endogenous constructs indicate sufficient predictive
(β = .005, p = .735), which do not give support for both hypotheses.
In our study, H4 was the only mediating relationship; to test the
relevance (Figure 3).
mediation effect, we used the bootstrapping the indirect effect
method (Preacher & Hayes, 2008) with a 5,000 resample. The indi-
4.4
|
Hypotheses testing results
rect effect of KMP à OGI à CSP (β =
LL =
1.417, and BCI UL =
.742, p = .038, BCI
0.055) indicating the indirect effect is
In the next step, to assess the 14-hypothesis developed we ran a boo-
statistically significant. This gives support for the H4 of this study.
tstrapping of 5,000 resamples. First, we assessed the direct relation-
Furthermore, for testing ABC's moderation effects, a two-stage con-
ships before looking at the mediation and moderation effects. The
tinuous moderation analysis was performed by following Fassott,
results revealed that KMP (β =
21.853, p < .01) and its determinants
Henseler, and Coelho (2016) method. The results revealed a signifi-
including acquisition process (β = 8.702, p < .01), dissemination pro-
cant moderating role of ABC on the relationship between KMP and
cess (β = 9.092, p < .01), and application process (β = 8.768, p < .01)
OGI (β = .045, p = .263), but the study found insignificant moderat-
were significantly related to Organizational Green Innovation (OGI).
ing effects for KMP and CSP (β =
Hence H1, H1a, H1b, and H1c were supported. Similarly, OGI was
Hence, H5b was supported while H5d was rejected, as results are
also significantly and positively related to CSP (β = 0.034, p = .012)
shown in Table 3. Besides, the moderation graph for H5b indicates a
and its determinants including ENS (β = .298, p < .01), ECS (β = .485,
low impact of KMP on OGI at low ABC. However, increasing ABC
p < .01), and SSP (β = .543, p < .01). This gives support for H2, H2a,
improve the relationship between KMP and OGI, as shown in
H2b, and H2c. In addition, for H3 results revealed that KMP was sig-
graph3.1. Furthermore, the moderation graph for H5d shows a
nificantly associated with CSP (β =
.006, p = .512) relationship.
.039, p = .029), which giving
slightly high impact of KMP on CSP at low ABC. However, increasing
support for H3 of our study. Furthermore, H5a and H5c were also
ABC dampen the relationship between KMP and CSP, as shown in
directly associated and results revealed absorptive capacity (ABC) was
graph3.2.
11
HUSSAIN ET AL.
FIGURE 3
5
|
Structural model
DISCUSSION AND CONCLUSION
organizations will effectively exchange expertise amongst all workers
of the company. In that case, they increase the operational, financial,
This study sought to determine how KMP acts to strengthen GI and to
and non-economic performance and coordinate the multiple
decide the function that GI plays in RBV manufacturers' overall pro-
stakeholders for eco-innovation (Tseng, 2014). KD is also essential;
cess improvements. These industries struggle to be competitive with
staff's expertise and skills may be improved, contributing to creativity
the shift in the innovation process. The findings of the current study
and success. Our findings contradict Darroch's (2005) prior studies
revealed that KMP has a positive influence on GI and that GI still posi-
since the researcher did not find a positive association between KD
tively affects CSP. Our results also indicated that all KMP (KA, KD, and
and firm success. Introvert workers could be the source of less
KAP) dimensions corroborate the results of the initial study in a wider
knowledge dissemination during communication. However, recent
setting, establishing a constructive interaction with GI (Abbas &
studies have shown similar results to previous studies' findings
san, 2019; Darroch, 2005; Shujahat et al., 2019). Using specialized
Sag
(Cavusgil et al., 2003; Monica Hu et al., 2012). Additionally, there is
expertise, it is possible to look at any problem from different perspec-
evidence of a strong association between KAP and GI. Companies have
tives, such as financial capability growth, employee capacities, and cus-
to easily and rapidly adapt already gained information to obtain full
tomer desires (Darroch, 2003). According to the Tseng (2014) report,
consumer loyalty (Kuo & Lee, 2011). According to Darroch (2005),
KA is a crucial method for workers to cooperate and maintain continu-
business operations would have an easier time manufacturing green
ous enhancement inefficiency in any company department.
goods due to advanced technologies and products which depend on
This research has contradicted findings with the previous study
KAP. These findings are confirmed by previous studies Abbas and
conducted by Lee et al. (2013), who argue that no relationship between
Sa
gsan (2019), Madhoushi et al. (2011), Mills and Smith (2011). The
KA and organization performance was found. KD has a favorable asso-
role of GI in causing corporate sustainability can be demonstrated by
ciation with GI and the results are consistent with previous research
the fact that GI is regarded as a major driver of corporate sustainability,
san, 2019; Cavusgil, Calantone, & Zhao, 2003; Hamdoun,
(Abbas & Sag
culminating in the SCP. This study reveals that GI has an important and
Jabbour, & Othman, 2018; Zhang, Yao, Sun, & Tay, 2019). Suppose
optimistic impact on all SCP measurements (ENVS, ECOS, and SOCS).
12
HUSSAIN ET AL.
TABLE 3
Hypotheses testing results
Hypotheses
Relationships
Β
Standard error
21.853
T statistics
p
Values
BCI LL
BCI UL
f2
H1
KMP - > OGI
H1a
ACQ - > OGI
H1b
DIS - > OGI
9.092
2.445
3.718
0.000
2.885
12.693
0.102
H1c
APP - > OGI
8.768
2.347
3.736
0.000
3.086
12.569
0.109
8.702
6.039
3.619
0.000
31.128
6.83
0.096
2.378
3.66
0.000
2.682
12.242
0.098
H2
OGI - > CSP
0.034
0.014
2.512
0.012
0.005
0.058
0.023
H2a
OGI - > ENS
0.298
0.071
4.181
0.000
0.172
0.439
0.098
H2b
OGI - > ECS
0.485
0.053
9.101
0.000
0.38
0.586
0.308
H2c
OGI - > SSP
0.543
0.058
9.371
0.000
0.428
0.657
0.418
0.025
H3
KMP - > CSP
0.039
0.018
2.188
0.029
0.072
0.007
H4
KMP - > OGI - > CSP
0.742
0.356
2.083
0.038
1.417
0.055
H5a
ABC - > OGI
0.078
0.057
1.378
0.169
0.025
0.193
H5b
KMP*ABC - > OGI
0.096
0.047
2.031
0.043
0.024
0.206
0.005
H5c
ABC - > CSP
H5d
KMP*ABC - > CSP
Endogenous constructs
R2
Q2
OGI
0.63
0.371
CSP
0.484
0.467
ECS
0.235
0.130
ENS
0.089
0.049
SSP
0.295
0.208
0.003
0.014
0.338
0.735
0.023
0.031
0.009
0.316
0.752
0.021
0.013
0.01
0.001
Abbreviations: ABC, absorptive capacity; ACQ, acquisition process; APP, application process; CSP, corporate sustainable performance; DIS, dissemination
process; ECS, economic sustainability; ENS, environment sustainability; KMP, knowledge management processes; OGI, green innovation; SSP, social
sustainability.
First, GI was the most influential ENVS driver. Enterprises that are
invest in innovative advanced technologies, products, and procedures that
fully informed of their environmental activities' detrimental effects are
assist companies in being more environmentally friendly, as well as make
quickly pushed to environmental sustainability. The results showed that
it possible for these businesses to communicate with SCP.
environmental awareness already has a major effect on company opera-
Results from the mediation analysis showed that KMP/SCP inter-
tions (Saez-Martínez, Gonzalez-Moreno, & Hogan, 2014). These programs
act through GI. Past research has shown that further examination is
have been developed to enhance and facilitate ENVS reception. These
required to understand better GI's crucial mediating function between
findings are aligned with previous studies by Abbas and Sa
gsan (2019)
san, 2019; Shahzad et al., 2020). ThereKMP and CSP (Abbas & Sag
and Saez-Martínez et al. (2014). GI also has a favorable effect on ECOS,
fore, the current study has enhanced GI's mediating position and has
which is compatible with previous studies (Hojnik & Ruzzier, 2016). Com-
proven that the relation between KMP and CSP can be partly medi-
peting in a market world today allows businesses to recognize cost-
ated. The present analysis also examined the mild relationship
cutting and eliminating duplication as critical means to remaining produc-
between AC and noticed that the GI and CSP are explicitly and opti-
tive, which has emerged as the most critical ECOS factor and eventually
mistic. However, the interaction findings with KMP to GI and CSP
affects efficiency (Albort-Morant, Leal-Rodríguez, & De Marchi, 2018).
were surprisingly negligible. The results are unique and contribute
Manufacturing expense is minimized mainly by reducing electricity con-
value to literature in the evolving sense.
sumption, raw material usage, service, and commodity eco-design
This study demonstrates that knowledge properties and absorp-
(Triguero et al., 2013). GI has a good influence on SOCS and encourages
tion are potent predictors of innovation efficiency and that absorption
mez et al., 2013; Saunila et al., 2018).
previous studies (Galdeano-Go
capacity moderates the relationship between knowledge properties
Socially conscious companies are now more involved and dedicated to
and innovation performance. Analyzing how absorption ability affects
achieving environment-friendly consumer standards to reduce environ-
innovation efficiency suggests another way to promote innovation in
mental harm. It was able to recognize and characterize the excellent natu-
organization policies (Escribano et al., 2009). An organization can
ral, fiscal, and human resource efficiency as well as emphasizing the value
access information via its network connections but cannot absorb
of social welfare. Human resources creation through environmental
specific implicit, undefined, and ambiguous knowledge. The greater
awareness training will help workers improve their attitude, affecting eco-
the awareness that a business may reach other network participants,
innovation (Huang-Lachmann & Lovett, 2016). GI frequently chooses to
the greater its absorption potential.
13
HUSSAIN ET AL.
6
|
PRACTICAL IMPLICATIONS
confined only in one country to the manufacturing sector. It is recommended that the scope of this research could be extended to
First, the findings of this study provide useful insights for experts and
numerous regions to carry out a more detailed study. The findings
manufacturers. It helps to understand the role of KM in their organiza-
of this research may also be contrasted with other areas. It can also
tional behavior by being an eco-innovative ecological, economic, and
be evaluated in a particular business field; this can improve this
social organization. In this context, the top management can devote
study's generalizability. Data from individuals from ISO-certified
additional time and consideration to KMP (acquisition, delivery, and
organizations operating in Pakistan were collected to assess the
application) workforce growth to be an essential method to improve
value for KM and GI's sustainable output. When examined in terms
AC, GI, and CSP.
of their specific sectors or institutions, we noticed not much vari-
Second, this study emphasized the significance of the KMP to
ability in results. While this study offers a roadmap for uncertified
policymakers and the civil administration. It proposed that different
businesses, future studies will consider these uncertified organiza-
government departments must understand the relevance of informa-
tions for the research at the organizational and industry level,
tion in fostering SD enhancement by GI. To do this, they should initi-
including practical insights. Second, there was another weakness in
ate a particular initiative to train management and build a successful
this study in the cross-sectional method. This method involves the
organization. Consequently, KM is an essential determinant for GI in
examination of the casual relationship because a clear decision can-
developing countries in which organizations are less resourceful than
not be made. Prospective or experimental research is also advised
their counter-developed countries. Besides, the present study is the
to obtain more conclusive results in the future. Besides, other mod-
first to confirm empirically that the KM is just as crucial for Pakistani
erating factors such as the complex and absorptive capacity of
leaders and a significant move forward for the GI and the sustainable
employees' personality attributes could be integrated. Since absor-
economy to the best of the authors' knowledge.
bent capacity and personality attributes (extravert/introverted) are
Third, the development firms should focus on KA, diffusion, and
implementation, as it is an instrument for carrying out GI inside
necessary for information acquisition and sharing, they are
eventually useful in the successful KM phase.
and outside the enterprise to accomplish SD objectives. The managers
can provide workers a forum on which they can exchange their expertise
and interact with other employees (i.e., social networking companies) and
OR CID
boost their capacity to collaborate for increased AC and performance.
Khalid Jamil
https://orcid.org/0000-0003-2106-9173
The goal is to coordinate conferences, workshops, and preparation for employee social interaction. This study provides the guidance
and knowledge needed to enhance AC, which is necessary to increase
productivity and ensure its sustainability in unpredictable environmental conditions.
Finally, given the environmental concerns and SD priorities promoted by the emerging countries often commit themselves to take practical steps and investing in supporting the training and green processes
of staff by promoting eco-friendly technology by cooperating with developed countries. This study recommended technology-driven companies.
Concentrations on new technology only and investments in a
greener world are not enough for sustainability; the existing information ecosystem relies more on soft issues like KM and AC. The findings of this research also aid in producing curriculum and training
materials for the manufacturing industries. Besides, in the sense that
the GI and CSP research is restricted, these empirical findings may
offer policymakers and scholars useful advice in developing countries.
It suggested, for example, the fundamental process by which KMP
affects CSP with GI integration. Consequently, GI-based businesses
can produce products or services that support the green economy
that is environmentally sustainable and profitable.
7
|
L I M I T A T I O NS
This study has many limitations, due to limited time and money,
that could facilitate potential researchers. Second, this study was
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How to cite this article: Hussain, Z., Jusoh, A., Jamil, K.,
Rehman, A. U., & Gul, R. F. (2021). Analyzing the role of
knowledge management process to enhance sustainable
corporate performance: A mediation moderation model.
Knowledge and Process Management, 1–16. https://doi.org/10.
1002/kpm.1679