Navigating Green Innovation and Key Determinants of Small and Medium-Sized Enterprises in Pakistan

Fizza Ishaq (), Xiangsheng Dou (), Muhammad Qasim () and Ansar Abbass ()
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Fizza Ishaq: Southwest Jiaotong University
Xiangsheng Dou: Southwest Jiaotong University
Muhammad Qasim: University of International Business and Economics
Ansar Abbass: Dongbei University of Finance and Economics

Journal of the Knowledge Economy, 2025, vol. 16, issue 3, No 35, 11979-12010

Abstract: Abstract Due to change in climate and environment, firms are actively seeking to bring solutions through adopting green innovation. This paper investigates the impact of digital transformation, responsible leadership, and corporate social responsibilities on green innovation and tests how knowledge sharing mediates the above relationship. The resource-based theory is used as the underlying framework for modeling our conceptualized arguments. Moreover, a moderated mediation analysis is performed based on collected data from 458 hierarchy-level employees from manufacturing small and medium-sized enterprises (SMEs) in Pakistan with a cross-sectional and random sampling method. The study finds the positive relationships between digital transformation, responsible leadership, corporate social responsibility, and green innovation where knowledge sharing significantly mediates the above relationship. Further, organizational culture moderates the path between knowledge sharing and green innovation. The paper recommends to encourage the value of digitalization and corporate social responsibility in SMEs to form green innovation.

Keywords: Green innovation; Digital transformation; Responsible leadership; Corporate social responsibility; Knowledge sharing; Organizational culture (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02338-5

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