Do knowledge management and green technology innovation matter in pursuit of environmental performance? A moderated mediation model from traditional manufacturing

Purpose Knowledge management (KM) is important to organizations, yet its impact and mechanisms on environmental performance (EP) remain poorly understood. This study aims to address this gap by exploring how KM improves a company’s EP, illustrating the internal organizational processes, and identifying the key factors that influence this relationship. Design/methodology/approach This research uses data from traditional manufacturing companies listed on China’s A-share market (2008–2023). Employing a moderated mediation model, the study investigates the interrelationships between KM, green technology innovation, and EP. It also explores how environmental regulation (ER) affects the progression of these relationships. Findings KM is found to significantly boost EP, and this effect varies with organizational agility, industry pressure, and regional knowledge density. Green technology innovations account for some of the effects of KM on EP. However, it is the qualitative aspect that matters most, rather than the mere quantitative growth. Moreover, ER has a strengthening influence on the effect of the mediating variable. Originality/value To the best of the authors’ knowledge, this study is the first to integrates KM into the EP framework of traditional manufacturing. It analyzes the mechanism through which internal resources are transformed into EP, extends the knowledge-based view and organizational ambidexterity theory to the context of green transformation and provides a micro-foundation for the knowledge-based process underlying the Porter hypothesis. These findings offer practical guidance for the sustainable and high-quality development of China’s traditional industries.