Measurment Question

TagedAPREnJournal of Innovation & Knowledge 9 (2024) 100455
Journal of Innovation TagedAPRFiur TagedAPREn

TagedAPRFiur TagedAPREn
& Knowledge
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TagedAPRH1Green knowledge management: A key driver of green technology

innovation and sustainable performance in the construction
organizationsTagedAPTREn
TagedAPRAli Nawaz Khana,1, Khalid Mehmooda,1,*, Ho Kwong Kwanb,*TagedAPTREn
a
TagedAPR Research Center of Hubei Micro & Small Enterprises Development, School of Economics and Management, Hubei Engineering University, Xiaogan, Hubei, 432000,
People’s Republic of China
b
Organizational Behavior and Human Resource Management Department, China Europe International Business School (CEIBS), Shanghai 201206, People’s Repub-
lic of China
TagedAPREn
TAGEDPRA R T I C L E I N F O TAGEDPRA B S T R A C T
Article History: The primary objective of this research is to examine the effects of green knowledge management (GKM) on
Received 16 December 2022 green technological innovation (GTI) and sustainable performance in construction firms. The study also
Accepted 8 December 2023 investigates the role of artificial intelligence (AI) as a moderator of the relationship between GKM and green
Available online 22 December 2023TagedAPTREn
human capital (GHC). A survey questionnaire was used to obtain data from 309 construction firms in Paki-
TagedAPREnTagedAPRKeywords: stan, and the AMOS-24 and SPSS PROCESS macro software packages were used to test the hypotheses. The
findings revealed that GKM had significant positive impacts on GTI and long-term performance. Aspects of
Green knowledge management
GIC (e.g., green structural capital, green relational capital, and green human capital) were found to be signifi-
Artificial intelligence
Green intellectual capital
cant mediators of GKM and GTI interactions and correlations between GKM and sustainable performance.
Green technology innovation Furthermore, the study showed that AI significantly influenced the relationship between GKM and GHC. The
Sustainable performance study’s findings have important theoretical and practical implications for organizations and governments.
Knowledge-based view TagedAPREn The study theoretically contributes to the knowledge-based view of the firm by providing empirical evidence
of the role of various GIC characteristics as mediators in the interactions between GKM, GTI, and sustainable
performance. In practice, the findings suggest that firms can improve GTI and sustainable performance by
investing in GKM and GIC.
© 2023 The Authors. Published by Elsevier España, S.L.U. on behalf of Journal of Innovation & Knowledge. This
is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/)TagedAPTREn
TagedAPRH1IntroductionTagedAPTREn recognize the importance of environmental preservation, and have

been inspired to modernize their operations and management frame-
TagedAPRNineteenth-century industrialism successfully lifted millions of works. Previous studies have shown the importance of business capa-
people from poverty. However, this economic success caused envi- bilities to the development of innovations that uncover new uses for
ronmental and resource degradation (Dahlquist, 2021). This raises existing goods, expertise, and resources (Hui & Khan, 2022; Khan &
the following question: Is damage to the environment necessary for Khan, 2021). As innovation frequently necessitates the acquisition
economic stability? Despite the abundance of natural resources, their and application of new knowledge (Berraies & Zine El Abidine, 2019),
vulnerability to climate change jeopardizes emerging economies’ knowledge assets are an essential resource for firms.TagedAPTREn
economic progress. For decades, governments have been eager to set TagedAPRThe capacity of an organization to gain and keep knowledge
rules and standards to ensure the environmentally friendly produc- determines its failure or success (Argote et al., 2000). Firms use
tion of goods and services (Khan, 2022; Mehmood et al., 2022; Sana, knowledge to boost customer satisfaction and gain a competitive
2020). The United Nations (UN) established its Sustainable Develop- edge (Dabbous & Tarhini, 2019). Knowledge management (KM) has
ment Goals (SDGs) to safeguard and enhance social and environmen- grown in popularity in the corporate world over the last few years
tal conditions (Ham et al., 2021). In response, firms have started to (Caputo et al., 2019; Kianto, 2011). It is regarded as an essential ele-
ment in strategizing, developing new goods and services, and manag-
ing operations (Donate & de Pablo, 2015). An efficient KM system can
TagedAPREn* Corresponding authors.
E-mail addresses: khalidmir@tongji.edu.cn (K. Mehmood),
boost a firm’s effectiveness (Brachos et al., 2007). Moreover, given
weicheong2317@hotmail.com (H.K. Kwan). ecological challenges, vibrant firms have broadened the scope of KM
TagedAPREn1 Ali Nawaz Khan and Khalid Mehmood are co-first authors.
https://doi.org/10.1016/j.jik.2023.100455
2444-569X/© 2023 The Authors. Published by Elsevier España, S.L.U. on behalf of Journal of Innovation & Knowledge. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/)
TagedAPREnA.N. Khan, K. Mehmood and H.K. Kwan Journal of Innovation & Knowledge 9 (2024) 100455
and begun to integrate environmental issues into business knowl- TagedAPRThe scarcity of research in this arena highlights the need for more
edge (Sahoo et al., 2022).TagedAPTREn in-depth assessments of whether or how technical resources such as
TagedAPRGreen knowledge management (GKM) has therefore become a artificial intelligence (AI) affect the abovementioned relationships.
critical strategic asset for many firms, providing them with a compet- Scientific studies have typically defined firm resources into three
itive advantage through their capacity to accomplish the UN SDGs groups: financial, technological, and managerial (Sahoo et al., 2022).
(Sahoo et al., 2022). Based on the concept of “green innovation,” one As a result, AI is defined as a firm’s willingness to devote technologi-
SDG goal is to make green production processes easy for organiza- cal resources to GKM and GIC initiatives to improve GTI and sustain-
tions (Asiaei et al., 2022). To develop sustainability practices, firms able performance. This is consistent with the theoretical concept of
must concentrate on both technological and management innova- the KBV, which emphasizes that the development and management
tion, and differentiate between two kinds of green innovation: green of key resources, including knowledge, assists firms in developing
management innovation and green technology innovation (GTI). GTI sustainable competitive advantages (Malik et al., 2022). AI was incor-
integrates cutting-edge innovation with knowledge and experience porated into the study model because it is an excellent tool for
to create a greener world. It helps firms to create new or improved improving the efficiency and efficacy of KM and GIC projects. AI can
products or operations that consume fewer raw materials and help firms discover and manage environmental risks, develop new
resources while enhancing ecological, financial, and industrial pro- green goods and services, and improve their overall sustainability
cesses (Aguilera-Caracuel & Ortiz-de-Mandojana, 2013).TagedAPTREn performance by collecting, storing, and analyzing enormous quanti-
TagedAPRThere have been numerous studies of KM and sustainable develop- ties of data (Sahoo et al., 2022). Other fourth-generation technical
ment (Choudri et al., 2016; Farrukh et al., 2022; Guo, 2019), but less resources, such as big data, cloud computing, and robotics, can also
attention has been paid to GKM and how it affects GTI and organiza- be leveraged to improve KM and GIC. However, we contend that AI is
tional environmental sustainability. Furthermore, there has been limited a particularly promising technology, as it can be used to automate
research on the contextual elements that influence the relationship many of the operations involved in KM and GIC, freeing human
between GKM and GTI. This study addresses the knowledge gaps that resources to focus on more strategic activities.TagedAPTREn
prevent us from understanding how sustainable performance and GTI TagedAPRSome studies have stated that developing nations are more vul-
contribute to green practices. The knowledge-based view of the firm nerable to environmental hazards (Adenle et al., 2015; Sharma et al.,
(KBV) regards knowledge as a crucial operational resource (Revilla et al., 2022), and thus using organizational resources is more challenging
2016), because an organization’s diverse knowledge bases and skills are for firms in these countries. Therefore, another objective of this study
the key drivers of its long-term competitive advantage and improved is to investigate the applicability of the KBV research framework to
organizational innovation and performance; furthermore, knowledge- the Pakistani construction industry. The construction industry is a
based resources are often difficult to replicate and socially complicated major source of pollution that contributes to climate change. The
(Chowdhury et al., 2022). Green intellectual capital (GIC) has been building sector uses large amounts of natural resources and produces
referred to as an important organizational resource for organizational significant amounts of greenhouse gas (GHG) emissions (Khan &
performance and sustainability (Haldorai et al., 2022a). GIC is described Khan, 2021; Kinnunen et al., 2022; Li et al., 2022; Mehmood et al.,
as the accumulation of tangible resources or knowledge related to envi- 2023). KM is the process of creating, sharing, and using knowledge
ronmental conservation or innovation (Asiaei et al., 2022; Wang & Juo, within an organization. By enhancing efficiency, optimizing resource
2021). Green human capital (GHC), green structural capital (GSC), and consumption, and introducing innovative green technologies, KM
green relational capital (GRC) are the three major elements of GIC (Dang can help the construction industry to reduce its environmental
& Wang, 2022; Nisar et al., 2021). There have been few studies of GIC impact. Employee knowledge, skills, and experience are examples of
and GKM (Martín-Rubio, 2021). Due to increasing ecological concerns, it intellectual capital (IC). IC can be used to build new goods and serv-
is critical to consider the combined effect of GIC and GKM on GTI and ices, improve efficiency, and generate new business models. GIC is a
sustainable performance. Thus, based on the KBV, the goal of this study type of IC that focuses on environmental sustainability (Mansoor et
is to investigate the relationship between GKM and GIC.TagedAPTREn al., 2021). GIC can be used to create new green products and services
TagedAPRThis study explores the mechanism through which GIC influences and to improve environmental performance. Effective KM would
organizations’ sustainable performance and GTI, which is another improve collaboration, learning, and innovation in the construction
gap in the literature. GTI consists of innovations that use improved industry (Khan et al., 2023). An organization that values IC attracts
technology, systems, and control techniques to lessen the impact of people and distinguishes itself from other organizations. Green inno-
business activities on the environment (Gao et al., 2021; Liu et al., vation reduces a firm’s environmental impact, complies with legisla-
2020). Its focus on reducing ecological damage distinguishes GTI tion, and improves a firm’s reputation. Collaboration and continual
from other types of technological innovation. GTI is built on the theo- learning are facilitated via knowledge-sharing platforms. Building
retical foundation of the KBV. According to the KBV, if firms want to information modeling (BIM), the Internet of Things, and AI are exam-
maintain their credibility and access to sustainable resources, they ples of digital innovations that optimize resource allocation and
must follow environmental laws and policies (Xie et al., 2019). Fur- enable data-driven decision-making that supports sustainable design
thermore, organizations tend to apply green initiatives (e.g., GKM) to and construction (Khan et al., 2023). These innovations improve proj-
improve and sustain GTI and performance. GIC has a role in this pro- ect outcomes, sustainability, and construction sector competitiveness
cess, and understanding the role can dispel any doubts regarding (Khan et al., 2021; Tam et al., 2004).TagedAPTREn
how GKM affects GTI and sustainable performance.TagedAPTREn TagedAPRThis study makes several important contributions to the field.
TagedAPRSeveral studies have examined the internal and external factors First, it is the first study to investigate how AI affects the link between
that influence GTI and sustainability. Studies of the intangible knowl- GKM and GIC. Second, it sheds new light on how GIC affects sustain-
edge that affects green innovation have shown that GKM is a crucial able performance and GTI. Third, it examines the mediating role of AI
component of GTI (Sahoo et al., 2022; Su et al., 2020). Unfortunately, in the relationship between GKM and GIC. Finally, the research is car-
few researchers have examined the mechanism through which GKM ried out in the context of the Pakistani construction sector, which is a
promotes GTI and sustainable performance. Such research must con- major contributor to environmental pollution. The following research
sider the varied effects of each component of GIC on GTI and sustain- questions reflect the objectives of this study.TagedAPTREn
able performance. The current study adds to the understanding of TagedAPRRQ1: What effects does GKM have on sustainable performance
GKM by first determining how GKM affects GTI and sustainable per- and GTI in the construction industry?TagedAPTREn
formance and then evaluating the mediating effect of GIC, thus eluci- TagedAPRRQ2: How does GIC mediate the relationships between GKM and
dating the link between GKM and GTI and sustainable performance.TagedAPTREn sustainable performance and between GKM and GTI?TagedAPTREn
2
TagedAPRRQ3: Does AI moderate the relationship between GKM and GIC?TagedAPTREn emphasized the significant impact of the integration of these factors
TagedAPRThe reminder of this paper is structured as follows. Section 2 on economic, environmental, and social goals—all of which are repre-
presents a thorough evaluation of the literature and provides a solid sented in the UN SDGs (Srisathan et al., 2023; Ribeiro-Soriano and
theoretical foundation for the study. Section 3 describes the research Pin~ eiro-Chousa, 2021). These resources complement one another. For
methodology, including data gathering methods and analytical pro- example, knowledge enables people and organizations to improve
cedures. Section 4 discusses the study’s findings, including the empir- their innovation capacities (Berraies & El Abidine, 2019). In turn,
ical data’s support for the research hypotheses. Finally, the findings higher innovation helps organizations to improve their performance
are thoroughly discussed and their implications are explored in Sec- (Brachos et al., 2007). According to Grant (1996), a critical element of
tion 5.TagedAPTREn firms’ KM, which helps them to construct resource-based strategies,
is how they gather, maintain, communicate, and use knowledge. As
per the KBV, knowledge is the most important strategic resource a
TagedAPRH1Theoretical background and hypothesis developmentTagedAPTREn
firm can have. Thus, this study uses the KBV framework to test the
direct and indirect effects of GKM on GTI and sustainable perfor-
TagedAPRH2Knowledge-based view of the firmTagedAPTREn
mance via GIC. Moreover, this study considers AI an organizational
resource that enhances the GKM−GIC relationship. These relation-
TagedAPRTraditional management theories, including the stakeholder the-
ships are presented in Fig. 1.TagedAPTREn
ory, organizational theory, and the resource-based view of the firm
(RBV), serve as the foundations for the KBV. Often viewed as an
extension of the RBV, the KBV maintains that knowledge produced TagedAPRH2Green knowledge management, green technological innovation, and
within an organization is a crucial resource for establishing a sustain- sustainable performanceTagedAPTREn
able competitive advantage in dynamic environments because (a)
knowledge-based sources are socially challenging to interpret and TagedAPRKM is frequently considered a key prerequisite for firms to thrive,
incorporate within the organization; (b) they are difficult for another endure, and grow in challenging environments (Shujahat et al.,
firm to imitate; and (c) they are constantly evolving and being co-cre- 2018). According to Revilla et al. (2016), KM separates successful
ated within an organization (Chowdhury et al., 2022; Grant, 1996). organizations from failed organizations. KM is a key force driving
The KBV sees itself as a knowledge producer and accelerator. The firm growth (Chae & Bloodgood, 2006; Sahoo et al., 2022). In volatile
KBV framework has been widely used in the management literature and dynamic settings, creating and applying knowledge not only pre-
and is frequently combined with the RBV and other frameworks. vents failure but can also promote profit. According to the KBV, firms
According to the KBV, firms are organizations that integrate knowl- exist to gather knowledge and turn it into sustainable strategic
edge, and an essential competency of a firm is the coordination of advantages (Srivastava et al., 2006). This point of view emphasizes
procedures for adapting the specialized knowledge of its employees the importance of knowledge as a basic resource for enhancing per-
to the productive functions of the organization (Al Nuaimi et al., formance and long-term survival (Malhotra, 2005). Knowledge is also
2021). The KBV stresses that it is the systemic and structural charac- the foundation of innovation. Consistent innovation is the result of
teristics of firms that enable them to build the capacity to link spe- the continuous production of knowledge.TagedAPTREn
cialized and complementary knowledge.TagedAPTREn TagedAPRA GTI is a new technological development that can improve envi-
TagedAPRAccording to the KBV, firms require cooperation, collaboration, ronmental standards, minimize energy use and pollution emissions,
and adjustments in hierarchies, job designs, guidelines, and current and contribute to the development of a more sustainable future (Liu
decision-making processes as they switch focus from producing et al., 2020; Rehman et al., 2018). Innovation is essential for firm suc-
knowledge to applying knowledge. Knowledge, entrepreneurship, cess and competitiveness, especially in complex environments. How-
and innovation are well established as the cornerstones of competi- ever, a firm’s ability to innovate is influenced by the corporate
tiveness and economic growth (Yu et al., 2022). Recent studies have environment in which it is embedded (Brachos et al., 2007). With
TagedAPRFiur
Fig. 1. Study model.TagedAPTREn
3
multiple stakeholders exerting immense pressure on firms to modify amount of employees’ understanding, expertise, abilities, knowledge,
and adopt ethical and environmentally friendly strategies, green mindset, intellect, creativity, engagements, etc. related to ecological
competency is becoming increasingly crucial for success (Chen & sustainability or innovativeness. In contrast to human capital, struc-
Hung, 2016). The increase in pollution, combined with the destruc- tural capital is embedded in organizations and is unaffected by
tion of natural resources, has motivated many governments and com- employee turnover. Structural capital refers to a firm’s reserves of
munities to call for GTI on a larger scale (Al Nuaimi et al., 2021). GTI technology, programs, databases, workplace organization, and man-
encompasses all potential green consumption and eco-process inno- agement expertise (Attar et al., 2019; Hsu & Sabherwal, 2012; Man-
vations that can minimize energy usage, pollution, and resource utili- soor et al., 2021). Due to the rise of global green policies, firms must
zation. Firms’ reasons for implementing GKM and GTI may fluctuate develop and put into practice sustainability systems if they want to
(Sahoo et al., 2022). Given that these are novel topics, scholars are seize opportunities or gain a competitive advantage. Chen (2008)
only beginning to investigate these concepts, particularly in business developed the notion of GSC, which he described as the inventory of
contexts, where they are the main strategy for minimizing the nega- administrative processes, administrative obligations, knowledge sys-
tive effects of economic operations on the environment (Su et al., tems, organizational values, workplace culture, firm reputation,
2020; Yu et al., 2022). GKM consists of employees’ comprehension of inventions, copyrights, trademarks, etc., related to ecological sustain-
their surroundings and their insights into the environment, enabling ability or innovativeness within a firm.TagedAPTREn
shared participation in long-term development (Farrukh et al., 2022). TagedAPRThe ties between a focal organization and its major stakeholders,
Some recent studies of the link between KM and innovation have including consumers, vendors, and allies, are collectively referred to
questioned whether there is any association between them (Kianto as relationship capital (Mohan & Youndt, 2005; Rehman et al., 2020).
et al., 2017; Sahoo et al., 2022; Su et al., 2020). As a result, the rela- Firms require the cooperation and resources of external organiza-
tionship between GKM and GTI remains ambiguous. This motivates tions and key stakeholders to survive and grow. They are less con-
the following hypothesis.TagedAPTREn cerned with the environment than external groups and stakeholders.
TagedAPRH1: GKM affects GTI positively.TagedAPTREn Currently, firms must commit increasing resources to green applica-
TagedAPRThe link between sustainable performance and GKM is evident tions to strengthen their ties with external organizations and stake-
when viewed through the KBV’s theoretical perspective (Caputo et holders. These collaborations should be based on mutual ecological
al., 2019). GKM, which facilitates the acquisition, integration, innova- concerns. Chen (2008, p. 278) defined GRC as “the assets of a firm’s
tion, and adoption of sustainable practices, is the scientific manage- interacting relations with customers, vendors, professional contacts,
ment of environmental knowledge within an organization (Wang et and allies around corporate environmental sustainability and ecologi-
al., 2022). Organizations can improve their sustainable performance cal innovation.” Therefore, each component of GIC is affected by an
by gaining appropriate knowledge about sustainable technologies organization’s GKM, as GIC is a vital organizational resource through
and regulations, incorporating green knowledge into organizational which members of an organization can acquire expertise in managing
processes, encouraging innovation and continual improvement, and environmental sustainability. Furthermore, KM strategies improve
involving stakeholders (Kakar & Khan, 2020; Sahoo et al., 2022). GHC, GSC, and GRC, while the sustainability of human capital can be
Organizations can gain a competitive edge in the pursuit of sustain- used to recruit and retain IC (Asiaei et al., 2022; Yong et al., 2019).
able development by employing GKM to successfully align their Furthermore, technological advances have significant impacts on
activities with sustainability goals, eliminate waste, reduce resource individuals’ careers and are an important part of IC, as technological
consumption, and encourage environmental stewardship (Farrukh et advances are now empowering individuals to disburse the experi-
al., 2022). Therefore, based on these arguments, this study proposes ence and knowledge that they accrue from fixing issues themselves
the following hypothesis.TagedAPTREn or from being prior recipients of specialized services (Al-Omoush et
TagedAPRH2: GKM affects sustainable performance positively.TagedAPTREn al., 2022; Rehman et al., 2020). Based on the above discussion, this
study offers the following hypotheses.TagedAPTREn
TagedAPRH2Green knowledge management and green intellectual capitalTagedAPTREn TagedAPRH3a: GKM affects GHC positively.TagedAPTREn
TagedAPRH3b: GKM affects GSC positively.TagedAPTREn
TagedAPRGIC is defined by Chen (2008) as the whole inventory of an organi- TagedAPRH3c: GKM affects GRC positively.TagedAPTREn
zation’s intangible resources, knowledge, capabilities, and interac-
tions, among other things, related to ecological sustainability or TagedAPRH2Green knowledge management, green intellectual capital, and green
green innovation at both the human and organizational levels. GIC is technological innovationTagedAPTREn
divided into three components: GHC, GSC, and GRC (Benevene et al.,
2021; Delgado-Verde et al., 2014). The conceptualization of GIC arose TagedAPRAccording to Lepak and Snell (2002), human capital is a critical
from a widespread realization that knowledge is critical to firms’ suc- resource for organizational innovation because employee knowledge
cess (Giampaoli et al., 2021; Kianto et al., 2020; Rehman et al., 2021). is critical for sustaining an organization in the context of today’s fast-
The roles of GIC and GKM are broad, covering the full range of intel- expanding technologies. As a result, employees are likely to be moti-
lectual activity, from knowledge creation to knowledge use (Martín- vated to apply green knowledge to GTI. Competition driven by GHC
Rubio, 2021; Rehman et al., 2023). GKM acknowledging the GKM development has the potential to generate GTI (Nisar et al., 2021).
−GIC relationship depicts the pool of knowledge at a certain point in GTI will be more successful in firms that have a high degree of GHC
time produced by knowledge flow techniques (Al-Omoush et al., than in those with a low degree of GHC (Haldorai et al., 2022b). This
2022; Hsu & Sabherwal, 2012). The connection between IC and KM is study contends that GHC serves as a bridge between employee GKM
shaped by a firm’s knowledge-based perspective, which is created and GTI, and that firms can capitalize on their GHC capacity to
through seminal investigations (Grant, 1996; Malik et al., 2022; improve their GTI. Green innovation is a cooperative effort in a
Revilla et al., 2016).TagedAPTREn knowledge economy and does not occur at the individual level. Sus-
TagedAPRHuman capital is a characteristic of individuals rather than institu- tainability initiatives, according to Hart (1995), include intangible
tions, and it can be lost when an individual quits an institution (Naha- organizational innovations and practices that indicate organizations’
piet & Ghoshal, 1998). Because it is crucial for firms to generate green dedication to the improvement of the natural ecosystem. The sustain-
innovation and green practices, the ecological knowledge of person- ability knowledge and experience required for a firm’s critical collab-
nel supports the firm’s compliance with external evolutionary chal- orations with its partners should be integrated into its business
lenges (Rehman et al., 2019; Wang & Juo, 2021). Chen (2008) processes, as this has the potential to increase joint knowledge and
introduced the concept of GHC, which he described as the total boost GTI outcomes. As a result, organizations with GRC can
4
collaborate with partners to develop new green technologies, initia- performance by enabling GSC. Given the above discussion and the
tives, and possibilities (Asiaei et al., 2022).TagedAPTREn KBV framework, this study makes the following hypotheses.TagedAPTREn
TagedAPRGTI might be impossible to achieve in organizations with poor TagedAPRH5a: GHC mediates the relationship between GKM and sustainable
green practices and a negative attitude toward the environment. An performance.TagedAPTREn
organization that absorbs environmental information at the institu- TagedAPRH5b: GSC mediates the relationship between GKM and sustainable
tional level develops a strong environmental culture, which moti- performance.TagedAPTREn
vates the acquisition of new ecological knowledge and promotes GTI TagedAPRH5c: GRC mediates the relationship between GKM and sustainable
(Asiaei et al., 2022; Liu et al., 2020). Moreover, by codifying important performance.TagedAPTREn
environmental safety knowledge and GKM into its processes, an
organization can ensure that these resources are consistently com- TagedAPRH2Moderating role of artificial intelligenceTagedAPTREn
municated and promoted inside the organization and used for GTI
(Sahoo et al., 2022; Wang & Juo, 2021). The KBV also emphasizes the TagedAPRAccording to Nishant et al. (2020), AI is a tool that uses human
importance of organizational knowledge-based resources in manag- intellect to increase performance in numerous sectors, and it is an
ing innovation (Grant, 1996). Thus, this study assumes that knowl- emerging field in all fields seeking to boost efficiency and productiv-
edge resources (specifically GKM) will enhance organizational ity. AI is one of the biggest technological advances of the twenty-first
resources (specifically GHC), which can improve GTI. Therefore, this century, and it has already started to alter both business organiza-
study makes the following hypotheses.TagedAPTREn tions and societies in ways that we could not have foreseen just a few
TagedAPRH4a: GHC mediates the relationship between GKM and GTI.TagedAPTREn decades ago. AI has become a key component of business innovation
TagedAPRH4b: GSC mediates the relationship between GKM and GTI.TagedAPTREn initiatives, process modernization, and disruption, and it is helping
TagedAPRH4c: GRC mediates the relationship between GKM and GTI.TagedAPTREn firms that have adopted a data-driven and digital environment to
gain a competitive edge (Chowdhury et al., 2022). Studies have also
TagedAPRH2Green knowledge management, green intellectual capital, and regarded AI as an organizational resource for combating environmen-
sustainable performanceTagedAPTREn tal issues (Dwivedi et al., 2021; Nishant et al., 2020). AI allows indi-
viduals to analyze, design, and implement comprehensive solutions
TagedAPRSustainable performance is the alignment of financial and envi- to environmental destruction and environmental issues that are not
ronmental goals in the execution of fundamental corporate opera- influenced by reductionism or the identity of individuals and groups.TagedAPTREn
tions to boost returns (Dey et al., 2022). According to the KBV TagedAPRDespite numerous studies examining the impact of an organiza-
framework, an organization’s competitive advantage is based on its tion’s knowledge resources on its intangible resources (Dang &
strategic use of its strengths. Firms that are subject to strict environ- Wang, 2022; Sahoo et al., 2022; Yu et al., 2022), the role of AI in orga-
mental protections are becoming more aware of the importance of nizational sustainability and performance has received limited atten-
GKM, and those that use the GKM contained in the knowledge, skills, tion, despite the importance of AI in organizational sustainability and
and creativity of their employees to promote ecological sustainability performance in this modern digital age. Several scientific studies
are more likely to adopt a green policy than their counterparts, have shown the importance of AI in the employee context (Li et al.,
because they understand how such strategies can improve their sus- 2019; Odugbesan et al., 2022; Sithambaram & Tajudeen, 2022), but
tainability performance (Sami et al., 2020). As a result, GKM enables a these studies have not investigated the impact of AI on firm-level
firm to identify its intangible resources (i.e., GHC) and can assist in outcomes such as GIC or whether AI changes the relationship
the successful implementation of green initiatives in uncertain envi- between GKM and GIC.TagedAPTREn
ronmental contexts, thus enhancing green performance. Moreover, TagedAPRThe scarcity of research in this area has led to a void in our under-
relational capital promotes external collaboration (Nahapiet & Gho- standing of these relationships. As a result, this study postulates that
shal, 1998; Ullah et al., 2021; Yusoff et al., 2019). Green improve- AI could either strengthen or weaken the link between GKM and GIC.
ments are made possible by lowering transactional, inquiry, First, we hypothesize that AI moderates the GKM−GHC relationship.
informational, and negotiation expenses. When companies imple- This hypothesis is predicated on the idea that AI may be used to auto-
ment GRC strategies, they can generate more successful sustainability mate many of the processes involved in GKM, freeing up human
initiatives to reduce their environmental impact and engage custom- resources to focus on more strategic operations. Employees will have
ers interested in sustainability (Asiaei et al., 2022; Yong et al., 2022). more time and resources to devote to learning about and using green
Firms must collaborate with each other to incorporate GKM−GRC technologies and practices, which can lead to an increase in the level
generated and disseminated learning into their processes to develop of GHC in an organization (Sahoo et al., 2022). Second, we hypothe-
value, and to use sustainable innovative business models based on size that AI moderates the GKM−GSC relationship. This hypothesis is
such knowledge (Haldorai et al., 2022a). Thus, GKM can enhance based on the recognition that AI may be used to collect, store, and
green performance through GRC.TagedAPTREn analyze vast volumes of data, allowing organizations to better under-
TagedAPRStructural capital helps a firm to arrange its systems and practices stand their environmental impact and identify areas for improve-
so that the necessary technological expertise is developed and identi- ment. This can lead to a rise in an organization’s GSC, as it gains a
fied as a critical asset. Furthermore, corporate talents are a prerequi- firmer grasp of the environmental repercussions of its activities.
site for achieving improved long-term success. GKM, which is part of Finally, we believe that AI will have a moderating effect on the GKM
the KBV framework, assists firms in guaranteeing employee access to −GRC relationship. This claim is based on the premise that AI can be
vital information in an environmentally and user-friendly manner used to promote collaboration and communication among various
(Wang et al., 2022). Under significant ecological pressure, GIC plays a stakeholders, assisting in the development and maintenance of GRC.
crucial role in a firm’s green performance (Wang & Juo, 2021). The GRC refers to an organization’s knowledge and its relationships with
primary goal of this study is to determine whether GIC mediates the its stakeholders, including customers, suppliers, and regulators. In
relationship between GKM and sustainable performance. GKM refers general, the hypotheses that AI moderates the relationships between
to a firm’s formal environmental knowledge (Sahoo et al., 2022). As GKM and GHC, GKM and GSC, and GKM and GRC have some empirical
the development of new products usually requires the use of techni- evidence. More research, however, is required to confirm these asso-
cal knowledge by employees (Asiaei et al., 2022; Mousa & Othman, ciations. Accordingly, this study proposes the following hypotheses:TagedAPTREn
2020), a store of information can build GSC. As a result, this study TagedAPRH6a: AI moderates the link between GKM and GHC.TagedAPTREn
anticipates that GKM, as the environmental information developed TagedAPRH6b: AI moderates the link between GKM and GSC.TagedAPTREn
inside a firm, will have a positive impact on the firm’s sustainability TagedAPRH6c: AI moderates the link between GKM and GRC.TagedAPTREn
5
TagedAPRH1MethodologyTagedAPTREn TagedAPRH2MeasuresTagedAPTREn
TagedAPRH2Sample and data collectionTagedAPTREn TagedAPRThe questionnaire survey was prepared based on the study’s frame-
work to ensure insights into each of the studied constructs. This
TagedAPRIn 2015, the member countries of the United Nations collectively required drawing on multiple studies to extract survey questions that
agreed to adopt the Sustainable Development Goals (SDGs), widely characterized each of the study’s major constructs. The responses used
recognized as the 2030 Agenda. The 2030 Agenda contains 17 SDGs a 5-point Likert scale ranging from 1 = “strongly disagree” to
that must be achieved by 2030. The SDGs outlined in the 2030 5 = “strongly agree.” GKM was measured using a five-item scale drawn
Agenda are relevant to all states. Pakistan has been a trailblazer in from the literature (Mao et al., 2016; Sahoo et al., 2022). A sample item
achieving the targets of the 2030 Agenda. The Pakistani government is “Employees and partners at our organization have easy access to infor-
has committed to carbon neutrality and to safeguarding the environ- mation on best-in-class environmentally friendly practices.” The three
ment. The SDGs also contain important targets for the construction components of GIC were measured using a scale from Chen (2008) and
sector. The construction industry is one of the largest and most recently used by Chang and Chen (2012). Sample items are as follows:
important drivers of economic growth and high living standards. This for GHC “The employees’ competence in environmental protection in the
industry contributes significantly to Pakistan’s GDP. However, it also company is better than that of its major competitors”; for GRC “The com-
consumes a large amount of energy and emits a high volume of pany designs its products or services in compliance with the environmental
GHGs. Around 40 % of energy use and GHG emissions are attributed desires of its customers”; and for GSC “The management system of envi-
to building design (Kinnunen et al., 2022). Improving energy effi- ronmental protection in the company is better than that of its major com-
ciency and enhancing energy efficiency in buildings is thus an essen- petitors.” AI was assessed with five items adapted from Belhadi et al.
tial goal for combating climate change.TagedAPTREn (2021) and Chen et al. (2022). One of the five sample items is “We use
TagedAPRThis study collected data using a questionnaire, which is a com- AI techniques to forecast and predict environmental behavior.” To mea-
mon method for gathering large amounts of quantitative data on sure sustainable performance, we used a scale adapted from Dey et al.
industrial practices (Bahadur et al., 2020; Khan et al., 2021; Xiongfei (2022). The eight-dimensional measure for sustainable performance
et al., 2020). The study was carried out in Pakistan, and the data were was separated into three components: financial performance, environ-
collected from Pakistani construction firms. Firm size was not mental performance, and social performance. A sample item is “Our
restricted in the sample selection, as the purpose was to collect data firm has a policy to improve its energy efficiency.” GTI was measured
from construction firms of various types and sizes. The sample frame using a scale adapted from Huang and Li (2017) and Sahoo et al. (2022).
included the entire country of Pakistan. An Internet tool was used to The measure consisted of five items and a sample item is “Our organiza-
collect data from the participants. The initial sample consisted of 900 tion is actively involved in the redesign and improvement of products or
randomly chosen construction firms. The firm was the analytical unit, services in order to comply with existing environmental or regulatory
and the participants were asked for their perspectives on how the requirements.”TagedAPTREn
topics under consideration operated at the firm level. The survey was
circulated to potential participants who had enough knowledge to TagedAPRH1Data analysis and resultsTagedAPTREn
answer the questionnaire. We did not focus on sustainable develop-
ment and eco-innovation executives as participants, because many TagedAPRH2Test of method bias and endogeneityTagedAPTREn
small and medium-sized businesses in Pakistan do not have execu-
tives with such titles. Instead, we identified employees at each firm TagedAPRBy determining whether early participants’ answers significantly
who we thought were reliable sources. They held various positions differed from those of late participants, the possibility of non-response
and responsibilities, including managing director, procurement direc- bias was examined (Armstrong & Overton, 1977). The analyses of con-
tor, site engineer, and construction manager. Most of the participants struct mean yielded p-values ranging from 0.514 to 0.880. Therefore,
were top executive officials, and each one had to have adequate com- non-response bias did not affect the study’s findings. Moreover, com-
petence in and knowledge of the topics under examination. The par- mon method bias (CMB) can affect the results if the data are collected
ticipants were asked to provide as much information as possible from a single source (Podsakoff et al., 2003). By motivating the partici-
while remaining anonymous. Following a couple of reminders and pants to respond honestly and permitting them to stay anonymous, this
follow-up messages, 309 participants returned completed and legiti- bias was mitigated (Podsakoff et al., 2003). The questionnaire items
mate survey responses, generating a 34.33 % return rate. This were meticulously crafted based on previous studies to make them as
response rate is consistent with other empirical studies (Ali et al., accurate as possible, as another methodological strategy to minimize
2020; Khan et al., 2023; Moin et al., 2021). Table 1 presents the sam- CMB. With the help of a group of academics with expertise in the sub-
ple profile, focusing on four characteristics (no. of employees, turn- ject, the final composition of the questionnaire items was developed
over, years of operations in the industry, and business type) of the over several iterations. Five academics from the disciplines of digital
participating firms.TagedAPTREn technology and service businesses oversaw the gathering of survey
Table 1
TagedAPRCptionInformation about control variables. TagedAPREn
VariablesTagedAPTREn NTagedAPTREn PercentageTagedAPTREn VariablesTagedAPTREn NTagedAPTREn PercentageTagedAPTREnboy
No. of employeesTagedAPTREn Years of operations in the industryTagedAPTREn TagedAPREn

<200TagedAPTREn 61TagedAPTREn 19.7TagedAPTREn <5 YearsTagedAPTREn 38TagedAPTREn 12.3TagedAPTREn
500 ≤ no. < 1000TagedAPTREn 82TagedAPTREn 26.5TagedAPTREn 5 ≤ Years < 10TagedAPTREn 70TagedAPTREn 22.7TagedAPTREn
1000 ≤ no. < 2000TagedAPTREn 66TagedAPTREn 21.4TagedAPTREn 10≤ Years < 15TagedAPTREn 100TagedAPTREn 32.3TagedAPTREn
>2000TagedAPTREn 100TagedAPTREn 32.4TagedAPTREn >15 YearsTagedAPTREn 101TagedAPTREn 32.7TagedAPTREn
Annual Turnover (in millions)TagedAPTREn Business typeTagedAPTREn TagedAPREn
<100 PKRTagedAPTREn 49TagedAPTREn 15.8TagedAPTREn Residential/home constructionTagedAPTREn 55TagedAPTREn 17.8TagedAPTREn
100 ≤ PKR <200TagedAPTREn 73TagedAPTREn 23.6TagedAPTREn Infrastructure constructionTagedAPTREn 46TagedAPTREn 14.9TagedAPTREn
200 ≤ PKR <300TagedAPTREn 53TagedAPTREn 17.2TagedAPTREn Commercial constructionTagedAPTREn 61TagedAPTREn 19.7TagedAPTREn
300 ≤ PKR <400TagedAPTREn 81TagedAPTREn 26.2TagedAPTREn Industrial constructionTagedAPTREn 105TagedAPTREn 34.0TagedAPTREn
>400 PKRTagedAPTREn 53TagedAPTREn 17.2TagedAPTREn OtherTagedAPTREn 42TagedAPTREn 13.6TagedAPTREn
6
Table 2
TagedAPRCptionFactors loadings, CR, and AVE, and research items. TagedAPREn
MeasuresTagedAPTREn Factor
LoadingsTagedAPTREnboy
Green Knowledge Management (CR = 0.892; AVE = 0.622; Cronbach a = 0.891)TagedAPTREn TagedAPREn
“Employees and partners at our organization have easy access to information on best-in-class environmentally friendly practices”.TagedAPTREn 0.788TagedAPTREn
“Our organization has procedures in place to gain knowledge about the environmental practices of our competitors, suppliers, clients, and strategic partners”.TagedAPTREn 0.804TagedAPTREn
“Our organization has structured mechanisms in place to exchange best practices across multiple disciplines of business operations”.TagedAPTREn 0.811TagedAPTREn
“Our organization develops initiatives (such as seminars, periodic meetings, and collaborative projects) that promote green information exchange across divi- 0.756TagedAPTREn
sions/stakeholders”.TagedAPTREn
“Our organization actively engages in processes that apply knowledge to solve new challenges across organizational departments and beyond departmental 0.784TagedAPTREn
boundaries”.TagedAPTREn
Artificial Intelligence (CR = 0.864; AVE = 0.560; Cronbach a = 0.863)TagedAPTREn TagedAPREn
“We possess the infrastructure and skilled resources to apply AI information processing system”.TagedAPTREn 0.757TagedAPTREn
“We use AI techniques to forecast and predict environmental behavior”.TagedAPTREn 0.748TagedAPTREn
“We develop statistical, self-learning, and prediction using AI techniques”.TagedAPTREn 0.816TagedAPTREn
“We use AI techniques at all levels of the operations”.TagedAPTREn 0.730TagedAPTREn
“We use AI outcomes in a shared way to inform decision-making”.TagedAPTREn 0.686TagedAPTREn
Green Human Capital (CR = 0.863; AVE = 0.559; Cronbach a = 0.861)TagedAPTREn TagedAPREn
“The productivity and contribution of employees concerning environmental protection in the company is better than those of its major competitors”.TagedAPTREn 0.756TagedAPTREn
“The employees’ competence of environmental protection in the company is better than that of its major competitors”.TagedAPTREn 0.796TagedAPTREn
“The products and services of environmental protection provided by the employees of the company are better than those of its major competitors”.TagedAPTREn 0.804TagedAPTREn
“The cooperative degree of teamwork pertaining to environmental protection in the company is more than that of its major competitors”.TagedAPTREn 0.758TagedAPTREn
“Managers in the company can fully support their employees to achieve the goals of environmental protection”.TagedAPTREn 0.609TagedAPTREn
Green Structural Capital (CR = 0.902; AVE = 0.608; Cronbach a = 0.902)TagedAPTREn TagedAPREn
The management system of environmental protection in the company is better than that of its major competitors”.TagedAPTREn 0.685TagedAPTREn
“The company’s profit earned from environmental protection activities is more 0.808TagedAPTREn
than that of its major competitors”.TagedAPTREn
“The company’s ratio of environmental protection investments in R&D to its sales is more than that of its major competitors”.TagedAPTREn 0.814TagedAPTREn
“Innovations about environmental protection in the company are more than those of its major competitors”.TagedAPTREn 0.843TagedAPTREn
“Investments in environmental protection facilities in the company are more than those of its major competitors”.TagedAPTREn 0.792TagedAPTREn
“The environmental knowledge management system in the company is favorable for the accumulation and sharing of environmental management knowledge”.TagedAPTREn 0.723TagedAPTREn
Green Relational Capital (CR = 0.828; AVE = 0.616; Cronbach a = 0.829)TagedAPTREn TagedAPREn
“The company designs its products or services in compliance with the environmental desires of its customers”.TagedAPTREn 0.792TagedAPTREn
“The company’s cooperative relationships about environmental protection with its upstream suppliers and downstream clients are stable”.TagedAPTREn 0.822TagedAPTREn
“The company has stable and cooperative relationships about environmental protection with its strategic partners”.TagedAPTREn 0.739TagedAPTREn
Green Technology Innovation (CR = 0.899; AVE = 0.640; Cronbach a = 0.898)TagedAPTREn TagedAPREn
“Our organization continuously optimizes the processes by using cleaner methods or green technologies to make savings”.TagedAPTREn 0.766TagedAPTREn
“Our organization is actively involved in the redesign and improvement of products or services in order to comply with existing environmental or regulatory 0.754TagedAPTREn
requirements”.TagedAPTREn
“Our organization specializes in recycling practices to ensure that end-of-life products are recovered for reuse in new product”.TagedAPTREn 0.798TagedAPTREn
“Our organization is rigorously involved in “eco-labeling” activities to make our clients conscious of our sustainable management practices”.TagedAPTREn 0.845TagedAPTREn
“The Research & Development team at our organization ensures that the current technical advancement is included in the development of new eco-initiatives”.TagedAPTREn 0.832TagedAPTREn
Sustainable Performance (CR = 0.923; AVE = 0.601; Cronbach a = 0.922)TagedAPTREn TagedAPREn
“Our company has an initiative to reduce, reuse, and recycle”.TagedAPTREn 0.807TagedAPTREn
“Our company has an initiative to reduce the negative environmental impact of its products”.TagedAPTREn 0.859TagedAPTREn
“Our has a policy to improve its energy efficiency”.TagedAPTREn 0.800TagedAPTREn
“Our company has competitive advantages in its sales and profit growth”.TagedAPTREn 0.712TagedAPTREn
“Our company has a competitive advantage in cost saving and efficiency”.TagedAPTREn 0.760TagedAPTREn
“Our company has a competitive advantage in its value”.TagedAPTREn 0.774TagedAPTREn
“Our company has a policy to strive to be a good corporate citizen”.TagedAPTREn 0.770TagedAPTREn
“Our company has a policy to respect business ethics”.TagedAPTREn 0.711TagedAPTREn
TagedAPRblNotNote: CR = Composite reliability, AVE = Average variance extracted. All factor loadings are significant at the p < 0.001 level.TagedAPTREn
data. Additionally, this study operationalized the marker variable (MV), (Hui et al., 2023; Rahman et al., 2023). Finally, to further prevent endo-
as suggested by Podsakoff et al. (2003), to further verify the influence of geneity issues, we followed the recommendation of Antonakis and
CMB on the data. The findings suggested that there was no significant House (2014) on control variables.TagedAPTREn
distinction between the baseline model and the alternative model, as TagedAPRWe ran several tests to ensure the reliability, validity, and compat-
there was no significant difference in the chi-square values. These ibility of the variables with the core assumptions of analysis of covari-
results established that the data were unaffected by the inclusion of the ance before evaluating the hypotheses. SPSS and AMOS were used to
MV, and it was thus implausible that CMB affected the conceptual mod- analyze the data. AMOS is a software program for testing theoretical
el’s hypothesized relationships.TagedAPTREn models that uses covariance-based structural equation modeling
TagedAPRWe also considered the possible effects of endogeneity. For example, (SEM). It is an excellent tool for testing complex interactions between
reverse causality between the predictors and the outcome variable, latent variables. AMOS is also reasonably simple to use and interpret,
which would suggest that the dependent variable affects the indepen- making it an excellent choice for researchers new to SEM. AMOS has
dent variables, may result in endogeneity (Antonakis & House, 2014). certain advantages over PLS (a variance-based method). PLS is a
However, this study’s theoretical model and hypotheses were based on newer approach and has been applied in fewer empirical studies. Fur-
the KBV, which refutes the notion of reverse causality. However, several thermore, PLS is less powerful than AMOS and can be more difficult
researchers (Antonakis & House, 2014; Rahman et al., 2023) have deter- to interpret. AMOS was chosen by the study’s authors as the most
mined that CMB may cause endogeneity problems. To evaluate CMB in suitable approach for evaluating a complex theoretical model with
our dataset, we used the tests outlined above and concluded that our several latent variables.TagedAPTREn
dataset was not affect by CMB. The likelihood of reverse causality was TagedAPRFirst, the validity and reliability of the measures were evaluated;
further decreased by the survey’s use of cross-sectional data. Every the results are shown in Table 2. According to Hair et al. (2010), the
component of the study variables was modified based on the literature lowest cut-offs for Cronbach’s alpha (a), composite reliability (CR),
7
Table 3
TagedAPRCptionDescriptive statistics and correlation matrix. TagedAPREn
ConstructsTagedAPTREn MeanTagedAPTREn SDTagedAPTREn GKMTagedAPTREn AITagedAPTREn GHCTagedAPTREn GSCTagedAPTREn GRCTagedAPTREn GTITagedAPTREn SPTagedAPTREnboy
Green Knowledge Management (GKM)TagedAPTREn 3.96TagedAPTREn 0.84TagedAPTREn (0.79)TagedAPTREn TagedAPREn

Artificial Intelligence (AI)TagedAPTREn 3.79TagedAPTREn 0.73TagedAPTREn .14*TagedAPTREn (0.75)TagedAPTREn TagedAPREn
Green Human Capital (GHC)TagedAPTREn 3.54TagedAPTREn 0.83TagedAPTREn .58***TagedAPREn .30**TagedAPREn (0.75)TagedAPTREn TagedAPREn
Green Structural Capital (GSC)TagedAPTREn 3.45TagedAPTREn 0.82TagedAPTREn .40***TagedAPREn .12*TagedAPTREn .65***TagedAPREn (0.78)TagedAPTREn TagedAPREn
Green Relational Capital (GRC)TagedAPTREn 3.57TagedAPTREn 0.97TagedAPTREn .44***TagedAPREn .25**TagedAPREn .67***TagedAPREn .59***TagedAPREn (0.79)TagedAPTREn TagedAPREn
Green Technology Innovation (GTI)TagedAPTREn 3.51TagedAPTREn 0.82TagedAPTREn .61***TagedAPREn .02TagedAPTREn .59***TagedAPREn .46***TagedAPREn .44***TagedAPREn (0.80)TagedAPTREn TagedAPREn
Sustainable Performance (SP)TagedAPTREn 3.52TagedAPTREn 0.86TagedAPTREn .57***TagedAPREn -.05TagedAPTREn .72***TagedAPREn .62***TagedAPREn .54***TagedAPREn .66***TagedAPREn (0.77)TagedAPTREn
TagedAPRblNotNote: (1) ***p < 0.001; **p < 0.01; *p < 0.05, (2) Square root of AVE are shown in parentheses on the diagonal.TagedAPTREn
and average variance extracted (AVE) values are 0.70, 0.70, and 0.50, and GTI, which confirmed H4a−H4c. Similarly, H5a−H5c were sup-
respectively. Furthermore, factor loadings should exceed 0.60 ported, as GHC (b = 0.27, CI = [0.171, 0.369]), GSC (b = 0.15,
(Bagozzi & Yi, 1988). The results in Table 3 show the discriminant CI = [0.077, 0.238]), and GRC (b = 0.12, CI = [0.060, 0.193]), mediated
validity of the standardized constructs, which was confirmed by the the relationship between GKM and sustainable performance, and all of
AVE of the variables being above their squared correlation (Fornell & the relationships were significant.TagedAPTREn
Larcker, 1981). Second, the variance inflation factors had a relatively TagedAPRThis study used PROCESS Model 1 to assess the moderating effect
low magnitude (between 1.14 and 1.21) when calculated using a dif- of AI on the relationship between GKM and GIC. For GHC (b = 0.19,
ferent predictive model. Confirmatory factor analyses were then per- p < 0.01) the interaction term (GKM*AI) was significant and positive;
formed to assess the proposed model’s fit. Measures such as chi- however, for GSC and GRC the interaction term was not significant
square/df < 5, CFI, IFI, TLI (above 0.90), and RMSEA (less than 0.08) (Table 4). To evaluate the interaction effects, we tested the moderat-
(Hair et al., 2010) had values within the recommended ranges. The ing effect of GKM and AI at one standard deviation above and below
model fit metrics were as follows: CMIN/DF = 1.783; p = 0.00; the mean. As shown in Fig. 2, when AI was higher, the effect of GKM
IFI = 0.934; CFI = 0.927; TLI = 0.933; SRMR = 0.0452; RMSEA = 0.050, on GHC was stronger, which is consistent with H6a. Thus, H6a was
showing a good fit of the measurement model. As the data met all of supported, but H6b and H6c were rejected. Finally, we tested the
the statistical tests for fit, we next tested the hypotheses.TagedAPTREn impact of the control variables on our outcome variables, and found
that none of them were significant.TagedAPTREn
TagedAPRH2Hypothesis testingTagedAPTREn TagedAPRAlthough we did not hypothesize a moderated mediation link, we
used the PROCESS macro to test whether AI moderated the associa-
TagedAPRThe PROCESS macro was used to test the study’s hypotheses, tion between GKM and GTI and sustainable performance via GHC.
including the posited moderated impacts (Hayes, 2017). The results According to the index of moderated mediation, the indirect influ-
confirmed the first hypothesis that GKM had a positive impact on GTI ence of GKM on GTI (conditional indirect effects = .06, 95 %CI = [0.029,
(b = 0.37, p < 0.001), as shown in Table 4. The outcomes also showed 0.104]) and sustainable performance (conditional indirect effects = .10,
that GKM positively influenced sustainable performance (b = 0.39, 95 %CI = [0.049, 0.167]) via GHC were statistically significant.TagedAPTREn
p < 0.001), supporting H2. The analysis also demonstrated that GKM
had a significant impact on GHC (b = 0.52, p < 0.001), GSC (b = 0.35, TagedAPRH1DiscussionTagedAPTREn
p < 0.001), and GRC (b = 0.39, p < 0.001), supporting H3a−H3c. We
used PROCESS macro Model 4 to test the hypothesized mediating TagedAPRBy applying a KBV framework, this study tested the relationships
relationships. The findings presented in Table 4 showed that GHC between GKM, GTI, and sustainable performance through GIC. This
(b = 0.17, CI = [0.085, 0.273]), GSC (b = 0.09, CI = [0.039, 0.162]), and study also tested the moderating effects of AI on the relationships
GRC (b = 0.08, CI = [0.032, 0.144]), mediated the link between GKM between GKM and the three GIC components. To the best of our
Table 4
TagedAPRCptionHypotheses testing results. TagedAPREn
EstimatesTagedAPTREn S.E.TagedAPTREn LLCITagedAPTREn ULCITagedAPTREnboy
Green Knowledge Management (GKM) ! Green Technology Innovation (GTI, H1)TagedAPTREn .37***TagedAPREn .052TagedAPTREn .263TagedAPTREn .468TagedAPTREn
Green Knowledge Management ! Sustainable Performance (SP, H2)TagedAPTREn .39***TagedAPREn .052TagedAPTREn .299TagedAPTREn .503TagedAPTREn
Green Knowledge Management ! Green Human Capital (GHC, H3a)TagedAPTREn .52***TagedAPREn .049TagedAPTREn .417TagedAPTREn .608TagedAPTREn
Green Knowledge Management ! Green Structural Capital (GSC, H3b)TagedAPTREn .35***TagedAPREn .052TagedAPTREn .237TagedAPTREn .443TagedAPTREn
Green Knowledge Management ! Green Relational Capital (GRC, H3c)TagedAPTREn .39***TagedAPREn .061TagedAPTREn .328TagedAPTREn .569TagedAPTREn
Mediating effectsTagedAPTREn
GKM ! GHC!GTI (H4a)TagedAPTREn .17***TagedAPREn .048TagedAPTREn .085TagedAPTREn .273TagedAPTREn
GKM ! GSC!GTI (H4b)TagedAPTREn .09**TagedAPREn .032TagedAPTREn .039TagedAPTREn .162TagedAPTREn
GKM ! GRC!GTI (H4c)TagedAPTREn .08**TagedAPREn .029TagedAPTREn .032TagedAPTREn .144TagedAPTREn
GKM ! GHC!SP (H5a)TagedAPTREn .27***TagedAPREn .050TagedAPTREn .171TagedAPTREn .369TagedAPTREn
GKM ! GSC!SP (H5b)TagedAPTREn .15***TagedAPREn .041TagedAPTREn .077TagedAPTREn .238TagedAPTREn
GKM ! GRC!SP (H5c)TagedAPTREn .12*TagedAPTREn .034TagedAPTREn .060TagedAPTREn .193TagedAPTREn
Moderating effectsTagedAPTREn
Artificial Intelligence (AI) ! GHCTagedAPTREn .28***TagedAPREn .055TagedAPTREn .175TagedAPTREn .392TagedAPTREn
Artificial Intelligence ! GSCTagedAPTREn .09TagedAPTREn .062TagedAPTREn -.034TagedAPTREn .211TagedAPTREn
Artificial Intelligence ! GRCTagedAPTREn .24**TagedAPREn .072TagedAPTREn .102TagedAPTREn .384TagedAPTREn
GKM x AI ! GHC (H6a)TagedAPTREn .19**TagedAPREn .043TagedAPTREn .106TagedAPTREn .275TagedAPTREn
GKM x AI ! GSC (H6b)TagedAPTREn .06TagedAPTREn .048TagedAPTREn -.034TagedAPTREn .157TagedAPTREn
GKM x AI ! GRC (H6c)TagedAPTREn .11TagedAPTREn .056TagedAPTREn -.002TagedAPTREn .218TagedAPTREn
TagedAPRblNotNote: N = 309. LLCI = lower level of the 95 % confidence interval; ULCI = upper level of the 95 % confidence interval; *p < 0.05, **p < 0.01, ***p < 0.001.TagedAPTREn
8
TagedAPRFiur
Fig. 2. Moderating influence of AI on the GKM-GHC relationship.TagedAPTREn
knowledge, this study is among the first to test these relationships in testing the direct effects of GKM on GIC, this study contributes to the
the construction industry, which is famous for its destructive impacts KM and IC literature. Our findings contradict earlier studies that found
on the environment (Kinnunen et al., 2022). The findings add to the that IC affects KM (Hsu & Sabherwal, 2012). Our different findings could
literature on KM, innovation, sustainability, and AI by using an exper- be related to our study’s construction industry setting, as recent and
imental approach to produce insights with theoretical and practical updated knowledge may help construction firms to improve their
implications and to identify new areas for future research. The find- intangible resources (Zhang & Sun, 2020).TagedAPTREn
ings are described below.TagedAPTREn TagedAPRThird, we found that GIC is a crucial mediator between GKM, GTI,
TagedAPRThis investigation of GKM’s effects on GTI and sustainable perfor- and sustainable performance, which has received little attention. In
mance yielded noteworthy findings. The empirical evidence is consis- the context of developing countries, the analysis of GIC as a mediator
tent with studies that found organizational resources to be positively is a new theoretical perspective, because only a small number of
associated with green innovation (Su et al., 2020; Wang et al., 2022). studies have examined how GKM influences GTI and sustainable per-
Sahoo et al. (2022) found a similar connection between GKM and formance (Al-Hakimi et al., 2022). GIC acts as a catalyst for cutting-
green innovation and green performance. This important conclusion edge goods and operations that help companies to “go green.” It is an
suggests that Pakistani construction firms can improve their GTI and essential component in emerging economies like Pakistan, where
sustainable performance by applying GKM. The findings demonstrate ineffective manufacturing techniques and waste disposal have seri-
that GKM has a positive influence on GIC. The results corroborate pre- ously harmed the environment. Our results suggest that Pakistani
vious research showing a similar positive association (Martín-Rubio, firms are using GIC to effectively improve their sustainable perfor-
2021; Sahoo et al., 2022), and are consistent with the idea that firms mance and innovation. By demonstrating that GIC remains a signifi-
can improve their GIC if they have resources and GKM competencies.TagedAPTREn cant component of sustainable performance, our research adds to the
TagedAPRFurthermore, the study’s mediation analysis shows that GIC medi- KBV literature by considering the perspective of emerging nations.TagedAPTREn
ates the relationships between GKM and both GTI and sustainable TagedAPRFinally, this study sheds light on AI’s function as a moderating fac-
performance. These findings are consistent with previous studies tor in the GKM and GHC cycles. This is one of the most important con-
investigating similar relationships (Asiaei et al., 2022; Martín-Rubio, tributions of this study to the AI literature. This finding highlights AI’s
2021). Finally, this study reveals that the moderating effects of AI important role in assisting organizations to use their technical
strengthen the positive impact of GKM on GHC, but that these moder- resources to enhance the capabilities of their intangible resources.
ating effects are not significant in the case of GKM−GSC and GKM However, firms cannot depend solely on AI, they must also use GKM
−GRC relationships. Although no other study has tested the moderat- to improve cooperation and coordination between employees (Rah-
ing impacts of AI in these relationships, we postulate that AI’s signifi- man et al., 2023).TagedAPTREn
cant moderating effect on GHC is due to employees’ use of technical
resources to improve their knowledge (Chowdhury et al., 2022). TagedAPRH2Practical contributionsTagedAPTREn
Studies have shown that employee−AI collaboration can help
employees to attain new knowledge and increase their contribution TagedAPROur results also have important practical implications for policy-
to organizational performance and sustainability knowledge (Chowd- makers interested in organizations’ GTI and sustainable performance,
hury et al., 2022; Nishant et al., 2020).TagedAPTREn as many firms are attempting to become greener (Dey et al., 2022).
Given the different structures of industrial activities in different sec-
TagedAPRH2Theoretical contributionsTagedAPTREn tors and the absence of expertise in sustainability policies, the results
of this study suggest that managers should develop cutting-edge
TagedAPRThis work makes several theoretical contributions. First, by examin- information technology infrastructures to support the efficiency of
ing the relationships between GKM, GTI, and sustainable performance, GKM and GTI (Sahoo et al., 2022). This investment will be more effec-
this research contributes to the literature on the KBV, which suggests tive if it corresponds to the firm’s strategic “mission and vision” state-
that organizations can improve their performance and competitiveness ments, which are explicitly related to a linked management
by using their intangible resources (Grant, 1996). This implies that firms approach. Managers in engineering contexts should consider manag-
with a strong focus on GKM can improve their GTI capacities and thus ing all of the firm’s technology resources to ensure compatibility.
improve performance. This conclusion supports earlier studies that Empirical examples show that the implementation of GKM, GTI, and
found (Sahoo et al., 2022) that GKM functions as a predecessor to GTI sustainability initiatives is particularly beneficial to firms seeking to
and sustainability, thus boosting sustainable performance. Second, by promote a cooperative green mindset across varied organizational
9
teams and their ecosystem of business allies (Asiaei et al., 2022; Xie et sample size, changing the sector and country examined, and employ-
al., 2019).TagedAPTREn ing a time-wave or longitudinal design. Second, in the context of
TagedAPRManagement, practitioners, and legislators concentrate on the Pakistan, this study solely examined the moderating impact of AI on
essential and sufficient conditions for firms to achieve financial the effect of GKM on GHC. Future studies could focus on additional
advantages. In addition to this aim, firms may seek to increase their elements that may influence this relationship, like the type of leader-
annual revenues to stay in the market. Researchers have developed ship or organizational support in a firm. Third, although this study
several models illustrating the internal qualities, competencies, or included some control variables and controlled for their impacts on
resources required to support positive financial performance (Agui- outcome variables, future studies could test the direct impacts of con-
lera-Caracuel & Ortiz-de-Mandojana, 2013; Huselid, 1995). However, trol variables such as gender and industry type on the outcome varia-
firms must focus on more than just improving their financial success. bles. Finally, future studies should consider how much
They must also be accountable for maintaining a sustainable and safe environmental dynamism—that is, the rate at which an environment
environment. As a result, they must take additional precautions to changes—affects the postulated relationships between GKM and GTI
protect the environment and decrease the impact of corporate opera- and sustainable performance.TagedAPTREn
tions. These goals may lead to changes in their talent base, knowl-
edge, or intangible resources (Algarni et al., 2022).TagedAPTREn TagedAPRH1Ethical approvalTagedAPTREn
TagedAPRThe findings of this study provide insights for construction firms
seeking to enhance their sustainable performance and GTI. The main TagedAPRAll procedures performed in studies involving human participants
findings contribute to a better understanding of the most essential were following the ethical standards of the institutional and/or
strategic dimensions of GIC for achieving improved sustainable per- national research committee and with the 1964 Helsinki declaration
formance and GTI. They demonstrate that GKM and GIC are the key and its later amendments or comparable ethical standards. Ethical
drivers of sustainability performance and GTI, and thus organizations approval was taken from the ethical committee of participating
should invest in these resources to promote GTI and firm perfor- organizations.TagedAPTREn
mance. This entails taking strong measures to boost eco-innovation,
such as establishing processes that enable the creation of innovative TagedAPRH1Permission to reproduce material from other sourcesTagedAPTREn
environmental inventions and investing in cutting-edge environ-
mental solutions. Similarly, emphasizing green marketing techniques TagedAPRNo material was taken from other sources which need permission
can boost construction firms’ performance (Kinnunen et al., 2022). to be published.TagedAPTREn
Consequently, for the managers of construction firms, green market-
ing is an important part of green strategies, in particular frequent
TagedAPRH1FundingTagedAPTREn
market research on sustainable development, telling customers
about the latest sustainable products and solutions, and investing in
TagedAPRThis study was funded by National Natural Science Foundation of
the firm’s eco-friendly reputation.TagedAPTREn
China (grant number 71672108).TagedAPTREn
TagedAPRFinally, the findings supporting the importance of AI as a GHC
moderator indicate the relevance of AI to an organization. An organi-
TagedAPRH1Availability of data and materialsTagedAPTREn
zation must have a clear plan to fulfill its goals, which can only be
achieved when its management deploys the required human, techni-
TagedAPRData for this study can be attained on the request from the corre-
cal, and monetary resources. Many problems can be solved by inte-
sponding author.TagedAPTREn
grating AI so that it enhances organizational sustainability and
process performance. Staff training is necessary for the incorporation
of AI into an organization to ensure the sustainability of projects that TagedAPRH1Declaration of Competing InterestTagedAPTREn
require interactions between humans and machines (Chowdhury et
al., 2022). To maintain stakeholders’ confidence, institutions should TagedAPRAll authors of this study declare that they have no conflict of inter-
also create an “internal and external control tower” to address ethical est. None of the authors is financially or non-financially involved with
concerns relating to privacy, to hire and retain staff who are techno- the organizations being studied in this article.TagedAPTREn
logically savvy, and to modify training materials to accommodate the
growing necessity of GTI achieved through AI−human interactions TagedAPRH1ReferencesTagedAPTREn
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TagedAPREnJournal of Innovation & Knowledge 9 (2024) 100455

Journal of Innovation TagedAPRFiur TagedAPREn

TagedAPRH1Green knowledge management: A key driver of green technology

TagedAPRH1IntroductionTagedAPTREn recognize the importance of environmental preservation, and have

Fig. 1. Study model.TagedAPTREn

VariablesTagedAPTREn NTagedAPTREn PercentageTagedAPTREn VariablesTagedAPTREn NTagedAPTREn PercentageTagedAPTREnboy

No. of employeesTagedAPTREn Years of operations in the industryTagedAPTREn TagedAPREn

Green Knowledge Management (GKM)TagedAPTREn 3.96TagedAPTREn 0.84TagedAPTREn (0.79)TagedAPTREn TagedAPREn

EstimatesTagedAPTREn S.E.TagedAPTREn LLCITagedAPTREn ULCITagedAPTREnboy

Fig. 2. Moderating inﬂuence of AI on the GKM-GHC relationship.TagedAPTREn

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