The effect of knowledge management on firm performance. mediating role of production technology, supply chain integration, and green supply chain

Abstract

The company's technology implementation is inseparable from employees' ability to operate and use it optimally. Therefore, companies must maintain a developed and adequate process knowledge management according to the latest needs to improve performance while considering environmental impacts. This study investigated the role of knowledge management in adopting production technology, supply chain integration, and green supply chain toward firm performance. The study surveyed the manufacturing industry in East Java that has implemented green supply chain management, with respondents having at least two years of experience working. Respondents have filled in as many as 115 questionnaires considered valid from the 145 questionnaires received. Data processing used the partial least squares software 4.0 version. The result indicated that knowledge management significantly influenced production technology, supply chain integration, and green supply chain adoption. However, knowledge management does not influence firm performance directly. Production technology enables supply chain integration, green supply chain adoption, and firm performance. Furthermore, supply chain integration affects green supply chain adoption and firm performance. Moreover, the result indicated that supply chain adoption directly influences the firm’s performance. The practical implication of the results enlightens the managers and top management on the importance of updated technology and knowledge for employees, enabling the adoption of supply chain integration and green supply chain in the pursuit of enhanced firm performance. These results enrich the current research in supply chain management theory.