The influence of green knowledge management and management commitment on ESG performance mediated by aggressive low carbon innovation

Abstract

This study investigates the influence of Green Knowledge Management (GKM), Green Market Orientation (GMO), and Management Commitment (MC) on Environmental, Social, and Governance (ESG) performance, emphasizing the mediating role of Aggressive Low Carbon Innovation (ALCI). A quantitative approach was employed, using structured questionnaires collected from 210 top and middle managers across 30 energy companies. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). GKM significantly affects ALCI (β = 0.483) and ESG performance (β = 0.202), with a notable indirect effect via ALCI (β = 0.151). GMO directly impacts ALCI (β = 0.279) and ESG (β = 0.312), and indirectly through ALCI (β = 0.087). MC significantly influences ALCI (β = 0.219) and ESG (β = 0.168), with an indirect effect via ALCI (β = 0.068). ALCI positively affects ESG performance (β = 0.312), confirming its mediating role. GKM, GMO, and MC enhance ESG performance both directly and indirectly through ALCI. Organizations aiming to improve ESG outcomes should invest in green knowledge, market orientation, and leadership commitment to foster low-carbon innovation and drive sustainable performance.