Knowledge Management and AI‐Driven Green Practices for Sustainable Performance

Abstract

Organizations increasingly face strategic pressure to translate sustainability‐oriented knowledge and digital transformation initiatives into measurable environmental and organizational outcomes. In response, this study investigates how green knowledge management (GKM) contributes to sustainable business performance through the organizational mechanisms of green human capital, green leadership, green technological innovation, and green management innovation. Drawing on the knowledge‐based view and sociotechnical systems theory, the study further conceptualizes artificial intelligence (AI) adoption as an enabling organizational and digital capability that strengthens firms' ability to operationalize sustainability‐oriented knowledge. A cross‐sectional survey was conducted among Algerian manufacturing and service firms, and the data were analyzed using partial least squares structural equation modeling (PLS‐SEM). The findings reveal that GKM enhances sustainable performance indirectly through green human capital, green leadership, and green management innovation. Moreover, AI adoption strengthens the effectiveness of GKM in facilitating green human capital development, supporting green innovation processes, and enabling sustainability‐oriented organizational transformation. However, the direct relationship between GKM and sustainable performance was not significant, suggesting that the strategic value of sustainability‐oriented knowledge depends on complementary organizational capabilities and execution mechanisms. This study contributes to sustainability strategy literature by explaining how firms orchestrate interconnected knowledge, innovation, leadership, and digital capabilities to support sustainable organizational performance, particularly within the underexplored context of emerging economies.