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

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.