How Green Knowledge Sharing Enhances Green Innovation: The Roles of Innovation Capacity and Knowledge Creation

Abstract

In the current era, the business environment of the firms is changing day by day. Increasing trends in industrial growth and transformation are causing, many environmental problems like carbon emission, chemical wastage, plastic waste, etc. Many manufacturing firms face difficulties to utilize green knowledge sharing (GKS) among employees and managers. Today, manufacturing firms face many difficulties to cope up with environmental policies forced by global energy service companies and energy savings companies. Manufacturing firms must be aware of knowledge sharing and obtain the best techniques and utilize the resources that must be applied to maintain and expand their business operations which will help them to compete in the global market.Accordingly, this research aimed to investigate the relationship between GKS and GI, and how CI is strengthening or weakening the relationship of GKS and IC, GKS and KC in order to achieve Green Innovation in our manufacturing industries. Innovation Capability and Knowledge Creation were used as mediator in relationship between GKS and GI. This issue can be resolved if the firms share green knowledge and build up innovation capability, leading to green innovation, thus reducing various wastes. Employing the lens of knowledge base view theory (KBV), the present study investigates the effect of green knowledge sharing (GKS) on green innovation (GI) via innovation capability and knowledge creation.A cross sectional study was conducted and data was collected from 200 employees working in the manufacturing industry of Pakistan. Data was analysed using Hayes PROCESS macro. Results supported the proposed model and show that green knowledge sharing (GKS) and green innovation (GI)'s positive relationship is mediated by innovation capability and knowledge creation. From moderation results it was also found that CI shows full moderation. Consequently, the study posits that green knowledge sharing is the core reason for a firm to improve innovation capability and knowledge creation to enhance green innovation. The study has practical and theoretical implications for manufacturing industries by recycling waste (plastic, fabric, and paper, etc.) and using portable machinery instead of conventional machines.Green knowledge sharing performance would be aided by company policies and associated initiatives like training, informational and inspirational seminars, learning sessions, and workshops. Organizations must increase employee understanding related to green innovation in their job and improve overall organizational performance by meeting green consumers' environmental demands and implementing environmental management ideas, because lack of green knowledge sharing may not lead our organizations toward green innovation. Hence we may not able to compete globally.