The effect of knowledge management on environmental innovation

Abstract

Purpose– The purpose of this paper is to analyze whether knowledge management (KM) practices trigger environmental innovation. Additionally, distinguishing between two types of KM practices, the authors want to examine whether different types of KM practices have the same role for environmental innovation.Design/methodology/approach– Employing two French surveys, namely, the Community Innovation Survey (2002-2004 and 2006-2008) and Annual Firm Survey (EAE, 2000), the authors analyze empirically the relationship between KM practices and environmental innovation. The theoretical relationship the authors propose is tested using bivariate probit model on 1,117 French manufacturing firms.Findings– The econometric estimations show that the investment in KM practices trigger environmental innovation. Furthermore, the authors distinguish between two types of KM practices: a written policy of KM and a culture intended to promote KM sharing. The main results are also confirmed for both types of KM practices. Moreover, based on coefficients and significance levels, the empirical results indicate that a culture intended to promote KM sharing has a more substantial impact on green innovation than a written policy of KM.Practical implications– KM can boost environmental innovation, which also enhances firm business performance. Therefore, managers should foster investment in KM capabilities. They need to create working atmosphere that generates, stores, transfers and applies knowledge in order to improve a firm’s green innovativeness. Additionally, the study results show that managers can choose among different KM practices in order to enhance environmental innovation. However, managers should be aware that not all KM practices provide the full advantage in terms of performance improvement. They should know that different KM practices have differential impacts on different performance outcomes. In this sense, managers should implement KM practices that fit their performance strategy.Originality/value– The relationship between KM and innovation performance has received increasing attention from researchers during the past years. However, even though scholars underline the importance of environmental innovation, the relationship between KM and environmental innovation remains significantly under-researched. The findings suggest that KM should be considered as an important source for environmental innovation improvement.