Unveiling the Nexus Between Innovation and Environmental Sustainability: The Moderating Influence of Knowledge Management Practices

Abstract

The purpose of this study is to identify and validate the antecedents and outcomes of environmental
sustainability in green manufacturing in Pakistan, by principally focusing on small and mediumsized enterprises (SMEs). This study examines the role of knowledge management processes
(KMPs), specifically the knowledge acquisition, knowledge dissemination, and knowledge
application, as enablers of environmental sustainability. Data were collected from 487 SMEs
through an online survey and analyzed using partial least squares structural equation modeling
(PLS-SEM). This study investigates the relationship between innovation, knowledge management,
and environmental sustainability in the context of green manufacturing. Significant findings
indicate that: (1) innovation has a significant impact on environmental sustainability and (2)
knowledge management moderates the relationship between innovation and environmental
sustainability. The contributions of this study to the existing literature include: (1) providing a
comprehensive framework linking environmental sustainability enablers to innovation in green
manufacturing sector and (2) establishing knowledge management as a mediator between
innovation and environmental sustainability. The findings of this study have important
implications for policymakers, managers, and researchers in understanding the dynamics of
environmental sustainability in SMEs of green manufacturing in Pakistan. This study also
discusses future research directions and limitations