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Does Relationship of Knowledge Management Practices With Eco-innovation Matter? A Mediating, Moderating Analysis Evidence From ICT Sector

Abdul Khaliq Alvi,Noor Hazlina Ahmad,Nadeem Akhtar

2025 · DOI: 10.1177/21582440251348018
SAGE Open · 0 Citations

TLDR

A framework for each kind of eco-innovation in SMEs of the ICT sector is proposed to propose to suggest that fostering knowledge exchange and creative thinking helps companies develop eco innovations, especially in dynamic markets.

Abstract

This research examines how knowledge management practices (KMP) influence eco-innovation through employee creativity (EC), while considering market turbulence (MT) as a moderating factor. The study surveyed 320 employees from ICT firms using simple random sampling. All KMP types positively increase employee creativity, and Creativity mediates the relationships between four KMP aspects and eco-innovation: Knowledge storing (KS) → Product eco-innovation (PDI), Knowledge diffusion (KD) → Process eco-innovation (POI), Knowledge generation (KG) → Organizational eco-innovation (OGI), Knowledge application (KA) → All eco innovation types. The results suggest that fostering knowledge exchange and creative thinking helps companies develop eco innovations, especially in dynamic markets. Current research also proposes the three main mediating hypotheses and 12 sub-hypotheses about the mediating effect of EC for the relation of KD, KS, KG, and KA with PDI, POI and OGI. Results indicate that EC plays its role as a partial mediator. It is also seen that EC has a positive impact on PDI, POI and OGI. This research also proposes three sub-moderating hypotheses. Results indicate that market turbulence (MT) positively moderates the relationship of EC with three kinds of eco-innovation (EI) that is, PDI, POI and OGI. Future directions, limitations and implications are provided at the end. Plain language summary Current research investigates the relations between knowledge management practices (KMP) and eco-innovation by using employee creativity as an intervening variable and also checks the moderating role of market turbulence. Data was collected from 320 employees of ICT companies with the help of a simple random sampling method. Results indicate that KMP has a positive impact on employee creativity. Also, employee creativity plays a mediating role in the relationship between the two KMP practices, i.e., knowledge. While the current body of research on eco-innovation concentrates on factors that may encourage the adoption of eco-innovation in manufacturing SMEs, the goal of this study is to propose a framework for each kind of eco-innovation in SMEs of the ICT sector. In this regard current study proposes two hypotheses for direct relationships and three hypotheses about the mediating effect of employee creativity for the relationship of kinds of KMP with kinds of eco innovation. The current study also proposes the hypothesis about the moderating effect of market turbulence for the relationship of employee creativity with kinds of eco innovations. Results confirm that kinds of KMP have a positive impact on employee creativity, and employee creativity has a positive impact on kinds of eco innovation. Results also confirm that employee creativity plays a mediating role for the relationship of kinds of KMP with kinds of eco innovation. Market turbulence is an important variable in the current era. That is why current research considers as a moderating variable. Results describes that market turbulence plays its moderating role for the relationship of employee creativity with process, organizational eco innovation and product eco innovation.