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This study aims to investigate the emerging and attractive phenomenon of sustainable performance influenced by the role of effective knowledge management with the mediation effect of green innovation. This study incorporated the formative construct of knowledge management, which consists of knowledge creation, acquisition, knowledge sharing and knowledge application that collectively predict sustainable performance and enable the firms to become innovative under a greening perspective. This study contributed to the body of knowledge by explaining the effect and influence of knowledge management practices and greening perspective on sustaining performance.

The empirical evidence of this relationship is examined in the current research to establish effective knowledge management practices for ensuring sustainability in Malaysia’s production and service industry. The data was collected from individuals from Malaysia’s small and medium enterprise (SME) sector by using a convenience sampling technique, and analysis was performed by using the SmartPLS4.

This study’s results revealed that knowledge management influences performance by inclusion of green practices. Similarly, green innovation predicts sustainable performance; finally, green innovation mediates the relationship between knowledge management and sustainable performance. Organizations are required to ensure knowledge management practices, including the creation of knowledge, acquisition, sharing and application of knowledge to sustain performance, with a mediation effect and an essential element of green innovation that empirically explains the association between knowledge management practices and performance.

The scope of research is limited and restricts the capacity of findings for a broader context inside Malaysia. There is a need to consider the organizational culture, contextual elements and leadership styles in investigating and explaining the critical phenomenon of sustainable performance.

Organizations are required to ensure knowledge management practices, including the creation of knowledge, acquisition, sharing and application of knowledge to sustain performance, with a mediation effect and an essential element of green innovation that empirically explains the association between knowledge management practices and performance.

Sustainable performance has the potential to increase the economic, social and environmental concerns of the firm, as strategies must be performance-centric to achieve the objectives. This research effort can assist Malaysia’s SME sector from various perspectives. This study provides the basis for taking the initiatives for knowledge management by focusing on creation, acquisition, sharing and application practices for achieving sustainable performance. This study incorporated the emerging concept of green innovation for its actions and strategies to achieve sustainable performance, and the actions of firms to adopt and implement the green practices that influence sustainable performance.

The framework for this study is novel. This study has been conducted to determine the sustainable business performance influenced by knowledge management, technological advancements and green supply chain management, moderated by leadership support. This study incorporated the formative construct of knowledge management, which consists of knowledge creation, acquisition, knowledge sharing and knowledge application that collectively predict sustainable performance and enable the firms to become innovative under a greening perspective. This study contributed to the body of knowledge by explaining the effect and influence of knowledge management practices and greening perspective on sustaining performance.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Malaysian SMEs are faced with the challenge of boosting competitive advantage through the adoption of sustainable performance practices and green innovation to support the wider Malaysian economy. Knowledge management is viewed as the key to success here.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.