Analyzing the role of knowledge management process to enhance sustainable corporate performance: A mediation moderation model

Abstract

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.