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Sustainable Innovation in Small Medium Enterprises: The Impact of Knowledge Management on Organizational Innovation through a Mediation Analysis by Using SEM Approach

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  • Jaffar Abbas

    (Antai College of Economics and Management (ACEM), School of Media and Communication (SMC) of Shanghai Jiao Tong University (SJTU), No. 800 Dongchuan Road Minhang District, Shanghai 200240, China)

  • Qingyu Zhang

    (Research Institute of Business Analytics & Supply Chain Management, College of Management, Shenzhen University, Shenzhen 518060, China)

  • Iftikhar Hussain

    (Dean Faculty of Computing & Engineering, University of Kotli Azad Jammu & Kashmir, Azad Kashmir 11100, Pakistan)

  • Sabahat Akram

    (Department of Economics, University of Kotli Azad Jammu & Kashmir, Azad Kashmir 11100, Pakistan)

  • Aneeqa Afaq

    (Department of Public Administration, University of Kotli Azad Jammu & Kashmir, Azad Kashmir 11100, Pakistan)

  • Muhammad Afzal Shad

    (Department of Commerce, University of Kotli Azad Jammu & Kashmir, Azad Kashmir 11100, Pakistan)

Abstract

This current study is among the very few investigations, which seeks the relationship between knowledge management and sustainable organizational innovation in garment business firms. This investigation focused on examining how organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research establishes that knowledge management and organizational innovation procedures are integral parts of the progress and survival of the organizations. The received data of this population reports on the garment firms, operating their businesses in Lahore and Gujranwala. The study applied a stratified random sampling method for data collection and employed structural equation modeling (SEM) to examine the hypothesized relationships. The results specify that knowledge management shows a significant positive association with organizational learning, which in turn reveals a positive linkage to sustainable organizational innovation in SMEs of the garment industry. The study results also specify that organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research survey identifies the significance of knowledge management and organizational learning in executing the process of organizational innovation, and it helps business managers to understand organizational learning as a mediator, which in turn indicates the benefits of knowledge management in achieving sustainable organizational innovation. This review provides an empirical indication of original data to investigate the linkage between knowledge management, sustainable innovation process, and organizational learning culture in the Pakistani garment sector. The generalizability of the study fallouts is restricted to the garment industry, and it offers valuable insights for imminent researchers.

Suggested Citation

  • Jaffar Abbas & Qingyu Zhang & Iftikhar Hussain & Sabahat Akram & Aneeqa Afaq & Muhammad Afzal Shad, 2020. "Sustainable Innovation in Small Medium Enterprises: The Impact of Knowledge Management on Organizational Innovation through a Mediation Analysis by Using SEM Approach," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2407-:d:334345
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    17. Sergio Ochoa-Jiménez & Beatriz Alicia Leyva-Osuna & Carlos Armando Jacobo-Hernández & Alma Rocío García-García, 2021. "Knowledge Management in Relation to Innovation and Its Effect on the Sustainability of Mexican Tourism Companies," Sustainability, MDPI, vol. 13(24), pages 1-14, December.
    18. Yomna M. Sameer & Suzanna Elmassah & Charilaos Mertzanis & Lujain El-Maghraby, 2021. "Are Happier Nations More Responsible? Examining the Link Between Happiness and Sustainability," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(1), pages 267-295, November.
    19. Yuanqin Ge, 2022. "RETRACTED ARTICLE: The impact of dynamic knowledge management capability on enterprise innovation performance," Operations Management Research, Springer, vol. 15(3), pages 1048-1059, December.
    20. Yingjie Yuan, 2021. "Does cultural distance energize employees? The moderating role of psychological safety," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-9, June.
    21. Mesfin Abeje & Fan Luo, 2023. "The Influence of Safety Culture and Climate on Safety Performance: Mediating Role of Employee Engagement in Manufacturing Enterprises in Ethiopia," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    22. Alnafrah, Ibrahim & Mouselli, Suliman, 2021. "Revitalizing blockchain technology potentials for smooth academic records management and verification in low-income countries," International Journal of Educational Development, Elsevier, vol. 85(C).
    23. Zhiqiang Zhang & Ling Li & Huiying Zhang, 2022. "A Sustainable Innovation Strategy Oriented toward Complex Product Servitization," Sustainability, MDPI, vol. 14(7), pages 1-14, April.

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