Investigating the nexus between information technology capabilities, knowledge management, and green product innovation: evidence from SME industry

Abstract

The aim of this study to investigate the relationship between information technology capabilities (ITCs) and green product innovation (GPI). The information technology (IT) capabilities with multiple dimensions, such as IT competence, IT integration, and IT infrastructure, were used in this paper. Moreover, to verify the deep relationship between ITCs and GPI, we used knowledge management (KM) as a mediator. The data were collected through a questionnaire from the senior managers, middle-level managers, and operational staff associated with the small- and medium-sized production industry of Pakistan. We collect data in two waves between January 2022 and July 2022. The data were analyzed through the partial least square structural equation modeling through SmartPLS 3.2.2. The findings of this study conclude. First, in the direct relationship, two IT capabilities, such as IT competence and IT infrastructure, have a positive and significant direct relationship with green product innovation, but IT integration has an insignificant relationship with green product innovation. Second, the results show that three IT capabilities have positively influenced knowledge management. Third, the results confirm that KM has a significant positive effect on GPI. Finally, the outcomes confirmed that knowledge management positively and significantly mediates between all IT capabilities and GPI in the indirect relationship.

Keywords: Green product innovation; Information technology capabilities; Knowledge management; Technological competence; Technological infrastructure.