The Impact of Knowledge Sharing Quality on Environmental Practices to Improve the Financial Performance of SMEs: The Mediating Role of Advanced Management Technologies

ABSTRACT This study examines how information quality influences the adoption of environmental practices in Mexican SMEs and how these practices affect financial performance, considering the mediating role of advanced management technologies. Knowledge exchange is assessed through training in knowledge management and internal knowledge transfer, both of which contribute to enhancing information quality. Based on a quantitative design, data were collected through 141 surveys and analysed using PLS‐SEM. The results reveal that training and internal transfer positively affect information quality, which in turn drives environmental practices. These practices are found to improve financial performance, with advanced management technologies acting as a partial mediator between information quality and sustainability outcomes. The findings contribute theoretically by integrating knowledge management, information quality, advanced technologies, environmental practices and financial performance into a comprehensive framework for SMEs in emerging economies. From a practical perspective, they provide guidance for managers and decision‐makers on prioritising knowledge‐sharing mechanisms and technological tools to foster sustainability. Thus, this study highlights that fostering knowledge‐sharing mechanisms, coupled with advanced technologies, is critical for SMEs seeking to align sustainability with financial success.