Linkages Between Knowledge Management Process and Corporate Sustainable Performance of Chinese Small and Medium Enterprises: Mediating Role of Frugal Innovation

Abstract

In the contemporary world, frugal innovation (FI) is the most discussed area to enhance corporate sustainable performance (CSP) in manufacturing firms. The knowledge management process (KMP) is also a key determinant of FI. Existing literature is limited to knowledge management (KM) and its impact on CSP. This study aims to determine the effect of the KMP (acquisition, dissemination, and application) on sustainable corporate performance with the association of FI. The survey method was used to collect data from 356 small and medium enterprises (SMEs) in China. Structure equation modeling was applied to obtain the results of collected data. Results show that all three dimensions of KM have a significant impact on CSP. Furthermore, FI also has a significant and positive impact on CSP. Results further show that FI partially mediates the relationship of the knowledge dissemination, knowledge application and sustainable corporate performance but no mediation role FI was found between knowledge acquisition and CSP. The findings of this study will provide useful insights for experts and manufacturers. It will help to understand the role of KM in their organizational behavior by being an economical manufacturing process. This study underscored the importance of the KMP to policymakers. In countries such as China that have global orders, KM is an essential determinant of FI. KM is a tool used to achieve CSP goals inside and outside of an enterprise, thus the development firms need to focus on KM.

Business Sustainability Factors of Mining Companies Based on SEM Model

“…The second section contained items related to knowledge management -KM. This section contained 14 items, taken and adapted from Darroch (2003), Kordab et al (2020), andKun (2022). The third section contained items related to green innovation -GI.…”

“…The fourth section contained items related to sustainable business -SB. This section contained 10 items, taken and adapted from Kun (2022). Attitudes were measured using a five-point Likert scale, from 1 -I do not agree at all, to 5 -I completely agree.…”

Role of Knowledge Management Process in Fostering Employee Performance: Assessing the Moderating Effect of Smart Technologies

“…Measurement items for the KMP are adopted from (Kun, 2022;Shannak et al, 2017). This questionnaire consists of three components of the KMP, knowledge acquisition, dissemination, application, storage, share creation and utilization.…”

Stimulating knowledge sharing behaviors for frugal innovation: the roles of inclusive leadership and competitive intensity

“…In other words, competitive pressure in the context of resource scarcity greatly affects the innovation efforts of Vietnamese firms and impels them to rethink their innovation strategies to adapt to that reality (Le, 2021). Frugal innovation (FI) has emerged as a novel way and become a popular buzzword among scholars and practitioners as a favorable approach to address to the resource scarce situation for pursuing innovation (Lei et al , 2021; Kun, 2022). According to Lei et al (2021), “frugal innovation is recognized an optimal choice for firms in emerging and developing countries where are experiencing consumers demand for frugal products and services characterized by low cost, focusing on core functionalities, and optimized performance” (p. 2).…”