Achieving green innovation performance through divergent internal and external digitalization pathways: the mediating role of knowledge management

Purpose While digitalization is widely recognized as a key enabler of green innovation, the specific mechanisms through which its different facets contribute remain unclear. This study aims to clarify which areas of digitalization enterprises should prioritize and the knowledge management (KM) pathways through which they affect green innovation performance. Design/methodology/approach Drawing on the knowledge-based dynamic capabilities view, this study develops a research model in which external and internal digitalization affect green innovation performance through different KM capabilities. We analyzed survey data from 1,006 enterprises to examine the distinct influencing paths and effects. Interviews with 20 managers corroborate the quantitative findings, further refining the underlying processes and synergistic mechanisms. Findings Internal digitalization more strongly enhances green innovation performance through knowledge utilization. In contrast, external digitalization supports knowledge acquisition but does not improve performance unless the knowledge is effectively utilized. Additionally, market turbulence and manager support for innovation strengthen the effect of digitalization, with the latter being more crucial. Furthermore, the enabling paths of external and internal digitalization are interconnected through synergistic mechanisms: shared digital infrastructure, knowledge flows and human–machine collaboration. Originality/value This study advances nuanced thinking in the literature on digitalization and green innovation by revealing the asymmetric and synergistic roles of external versus internal digitalization. It clarifies their distinct pathways through different KM capabilities and identifies key boundary conditions. In practice, it provides managers with actionable guidance for formulating differentiated digital strategies and designing synergistic KM processes to enhance green innovation performance.