Sustainable innovation and business success: The mediating roles of information technology capability and knowledge management

Abstract

In this study, our goal was to explore the connections between Sustainable Innovation (SI), Business Success (BS), Information Technology Capability (ITC), and Knowledge Management (KM) within Small and Medium Enterprises (SMEs) in Saudi Arabia. We chose a quantitative method, grounded in a positivist viewpoint, and selected 180 officials from Saudi Arabian SMEs using a targeted approach. We gathered data through a structured questionnaire and analyzed it with Covariance-Based Structural Equation Modeling (CB-SEM) to understand how these variables interact. Our results showed that SI did not have a direct and significant effect on BS. However, it had a notable positive influence on ITC and KM. Furthermore, both ITC and KM were found to significantly boost BS, highlighting their crucial mediating roles. These findings point out the indirect but essential influence of SI on BS by improving technological abilities and KM processes. This provides important guidance for SMEs in Saudi Arabia on how to effectively utilize SI.