Assessing The Impact Of Knowledge Management On Organizational Sustainability In The Pakistani Context: Do Innovativeness, Proactive-Ness And Risk Taking Behavior Play Any Interacting Role?

Abstract

This study investigates the role of knowledge management (KM) in organizational sustainability within the context of Small and Medium-sized Enterprises (SMEs) in the Peshawar city of Pakistan. The primary aim is to assess whether the relationship, if any, between these two variables is moderated by innovativeness, proactiveness, and risk-taking behavior. The study adopts an objective-driven, cross-sectional research design. Data were collected using a survey questionnaire distributed among SMEs in Peshawar. To test the hypotheses and analyze relationships, Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed. The findings of the study offer several key insights. Firstly, KM significantly explains organizational sustainability, underlining the strategic importance of knowledge management for SMEs in Peshawar. Additionally, the study highlights that innovativeness, proactiveness, and risk-taking also wield significant effects on sustainability. Specifically, innovativeness and proactiveness are identified as moderators that enhance the relationship between KM and sustainability, emphasizing their role in amplifying the impact of knowledge management practices. Surprisingly, risk-taking displayed no moderating effect, suggesting that while it may be an important factor, its influence on the KM-sustainability relationship in this context is limited. This study contributes significantly to both the Resource-Based View (RBV) and Knowledge-Based View (KBV) theories. It reaffirms the importance of knowledge management as a strategic resource (RBV) and enriches our understanding of knowledge-based capabilities, especially in the context of SMEs (KBV). The findings also expand the literature on the interplay between knowledge management, innovativeness, proactiveness, and risk-taking within the specific context.