Increasing legislative regulation forces firms to adopt and carry out activities (green innovation) for environmental sustainability and explore methods to increase competitiveness. Building on the natural resource-based view (NRBV), this study aims to investigate the role of green innovation in environmental sustainability and firm performance, with a moderating relationship with green knowledge management (GKM).
This study used a cross-sectional approach, collecting data from 282 Pakistani small and medium sized enterprizes (SME)s using a questionnaire. Multiple regression analysis was conducted to examine the influence of green innovation and GKM on environmental sustainability and firm performance, using AMOS.
According to statistical findings, green innovation substantially increases environmental sustainability and firm performance, with GKM playing a robust moderating influence. These findings enable managers and executives to focus on successful, environmentally friendly activities that can contribute to corporate environmental performance through planning, budget forecasting and execution.
This study adds value to the existing literature on green innovation, GKM, environmental sustainability and firm performance.
This study initially applies the NRBV to assess how green innovation and knowledge link environmental sustainability with firm performance.
