Does the interaction between the knowledge management process and sustainable development practices boost corporate green innovation?

Abstract

Green innovations are being deployed in manufacturing industries to promote organisational sustainability by embracing sustainable development practices (SDPs). However, little is known about how corporate green innovation (CGI) is influenced by the knowledge management process (KMP). To fill this gap, we have developed a multidimensional framework based on the resource‐based view (RBV) theory that provides a foundation for sculpturing the process by which KMP was observed to capture and sustain CGI through SDPs. Data were collected from 393 respondents of large‐ and medium‐sized manufacturing corporations in Pakistan and analysed using partial least squares structural equation modelling (SEM) and fuzzy set qualitative comparative analysis (fsQCA). This study provides several key findings. First, KMP dimensions (acquisition, dissemination and application) significantly improve the SDPs' dimensions (environment, economic and social). Second, SDP dimensions play a significant role in achieving CGI. Third, the implementation of SDPs partially mediates the relationship between the KMP and CGI. Furthermore, the fsQCA results signify the robustness of all integrated constructs. Our results demonstrate that investing in and adopting the latest technologies and sustainable practices are not only valuable for long‐term success but the soft concerns such as managing organisational knowledge are also vital in the current knowledge‐based economy. Finally, in light of our findings, theoretical and managerial implications, with propositions for future studies, have been provided at the end of the paper.